Compliance Services

Compliance Services combined Audit and Financial Services, Electronic Gaming, Gaming Compliance and Liquor and Lotteries inspections under one umbrella.

Compliance Services is responsible for conducting regulatory inspections and investigations across all lines of business regulated by the AGCO. The goal of this reorganization – to have a fully integrated role for all Inspectors – is consistent with the AGCO’s move to a risk-based and outcomes-based approach to regulation.

AGCO Audits

  1. Casinos and Slot Machine Facilities 
  2. Internet Gaming (iGaming)
  3. Charitable Gaming (cGaming)
  4. Other Charitable Gaming
  5. OLG Lotteries
  6. Horse Racing Audits
  7. Financial Due Diligence and Investigations 

 

1. Casinos and Slot Machine Facilities

In 2018-2019, the casino sector continued to transition to a private sector operated model under OLG’s modernization strategy. The sector also fully transitioned to a standards-based regulatory approach, under which the AGCO is establishing clear industry objectives and standards. Regulated entities then determine the most efficient and effective way to meet them. The AGCO assesses compliance by obtaining assurance these objectives and standards are being achieved. The approach benefits the AGCO and the operators by allowing for:

  • more operational flexibility while strengthening regulatory outcomes in a way that does not unnecessarily burden those we regulate
  • the AGCO to proactively manage the evolving nature of its regulated industries and provide flexibility to be able to assume new regulatory responsibilities.

In carrying out an audit at a casino facility, the AGCO auditor assesses the site’s compliance with the requirements under the Gaming Control Act (GCA), Registrar’s Standards for Gaming, the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, 2001 and related regulations. The AGCO proactively helps regulated entities comply with regulatory requirements using a mix of education, collaboration and deterrence. During 2018-2019, the AGCO carried out four risk-based audits.

2. Internet Gaming (iGaming)

As part of its regulatory assurance activities, the AGCO conducts audits, compliance monitoring and reviews, technical monitoring of the iGaming platform and investigations of suspicious behaviour within the province’s PlayOLG.ca gaming platform. The AGCO applies a risk-based approach to its activities, including its eligibility assessment and registration process, technical assessment and approval of updates to the OLG iGaming solution and new games, and the application of regulatory assurance activities to assess compliance with the Registrar’s Standards for Gaming.  During 2018-2019, the AGCO carried out four risk-based audits and reviews.

3. Charitable Gaming (cGaming)

The OLG, in partnership with the Ontario Charitable Gaming Association and the Commercial Gaming Association of Ontario, embarked on a multi-year initiative to revitalize charitable bingo in the province by introducing electronic products into existing and future charitable gaming facilities. These products currently include electronic bingo, Play on Demand games, electronic Break Open Ticket dispensers, and Turbo Challenge. 

The AGCO continued to work with the OLG and industry partners to facilitate the introduction of electronic games conducted and managed by OLG in cGaming centres. Thirty-one cGaming centres are now regulated under the Registrar’s Standards for Gaming. During 2018-2019, the AGCO carried out one risk-based audit.

4. Other Charitable Gaming

In addition to cGaming operated by the OLG in partnership with charities, traditional paper-based bingo events conducted and managed by licensed charitable organizations continue to operate in Ontario. Charitable gaming revenues, including those that come from traditional bingos, are an important source of funding for a large number of not-for-profit organizations.

The AGCO continued to support the charitable gaming industry by supporting fundraising opportunities for charities and providing suppliers with opportunities for business growth through modernization initiatives. These included the bingo revenue model (BRM), changes to the break open ticket regulatory framework, launch of Catch the Ace as well as its works with the Charitable Gaming Strategic Working Group and Mega Raffle Working Group. The BRM applies to all pooling bingo halls. While the role of provincial and municipal licensing authorities remains in place, this model provides for flexibility in how charitable games are licensed, managed and conducted.

5. OLG Lotteries

The AGCO conducts audits and reviews of OLG lottery management functions, processes and systems. Applying a risk-based approach, the AGCO completed one technology-related audit of a lottery system and continued to monitor the implementation of OLG’s lottery modernization. OLG continued to modernize key components of its lottery and iGaming business including a new OLG Player Platform, replacement of Lottery Terminals, an enhanced Sports Betting solution, a new Web and App presence as well as new games. 

This is a time of significant change in people, processes and technology. During the year, AGCO has been monitoring the changes underway, assessing related risks, educating new Gaming-Related Suppliers on AGCO’s regulatory requirements and expectations, as well as to assessing technology-related readiness.

6. Horse Racing Audits

The AGCO conducts audits and reviews of Ontario racetracks to assess the effectiveness of governance structures and processes, the integrity of funds management, compliance with the licence to operate a racetrack and with the Rules of Racing. AGCO Audit also collaborates closely with OLG Horse Racing in areas of shared interest such as governance and integrity of purse account management. In 2018-2019, the AGCO carried out three audits and reviews of Ontario racetracks.

7. Financial Due Diligence and Investigations

The AGCO conducts financial due diligence reviews to assess the ability of an entity applying for a licence or registration with the AGCO to conduct its business in accordance with the principles of honesty, integrity and financial responsibility. Financial Investigations Unit (FIU) reports are used to support the eligibility assessment process and licensing and registration decisions made by the Licensing & Registration Branch. During the fiscal year, the FIU completed 14 financial due diligence investigations, up from 12 in the previous fiscal year. The Branch also provided its forensic expertise to support investigations by the AGCO/OPP’s Investigations and Enforcement Bureau of suspected misuse of funds. 

With respect to the tables which follow: comparing 2018-2019 statistics with 2017-2018, the actual number of alcohol, gaming or horse racing inspections has dropped given that the focus of inspections is now less about numbers and more about compliance with governing legislations.