The AGCO is an arm’s length regulatory agency of the provincial government, reporting to the Ministry of the Attorney General. It was established on February 23, 1998, under the Alcohol, Cannabis and Gaming Regulation and Public Protection Act, 1996. The AGCO continues as a corporation under a new corporate governance statute, the Alcohol and Gaming Commission of Ontario Act, 2019.

The AGCO is responsible for the administration of:

• Alcohol and Gaming Commission of Ontario Act, 2019;
• Liquor Licence and Control Act, 2019;
• Gaming Control Act, 1992;
• Charity Lottery Licensing Order-in-Council 1413/08 (as amended);
• Cannabis Licence Act, 2018;
• Horse Racing Licence Act, 2015

Since its inception, the AGCO’s mandate has evolved to support the growth of the alcohol, lottery, and gaming sectors, in addition to more recently assuming responsibility for Ontario’s horse racing sector, and the legal recreational cannabis retail sector.

iGaming Ontario is a subsidiary corporation of the AGCO. Ontario Regulation 517/21 under the Alcohol and Gaming Commission of Ontario Act, 2019, sets out that relationship and provides for appointments to the iGaming Ontario Board. AGCO Board members can be cross
appointed to the iGaming Ontario Board of Directors with certain limitations which are set out in regulation. The AGCO remains an independent agency responsible for the regulation of gaming activities in the province, including igaming, to ensure it is conducted with honesty, integrity, and in the public interest. The Registrar’s role is independent of iGaming Ontario’s role in the conduct and management of igaming.

In addition to statutory and structural measures to mitigate real and perceived conflicts of interest, the AGCO Board has approved a Conflict-of-Interest policy for all AGCO employees, the Registrar and Chief Executive Officer, and AGCO Board Members. iGaming Ontario is also required by regulation to develop and maintain a separate Conflict of Interest policy for its directors, officers, and employees.

The AGCO is committed to fulfilling its mandate as set out in its 2025-26 mandate letter from the Attorney General. The AGCO has developed this Business Plan to align with the expectations in its mandate letter and the AGCO Board of Directors priorities.

Alcohol

The AGCO licenses and regulates establishments that sell, serve, or deliver liquor. In addition to establishments, it also licenses and regulates alcohol manufacturers, including by-the-glass, retail stores, delivery, and temporary extension endorsements. The AGCO administers the Special Occasion Permit (SOP) program, allowing for the sale and service of liquor at special occasions. In terms of compliance activities, the AGCO inspects, monitors, including through the Mystery Shopper Program, and educates licensed establishments to ensure compliance with the Liquor Licence and Control Act, 2019, its regulations and Registrar’s Interim Standards and Requirements.

Lottery and Gaming

Licensing and Registration activities for lottery and gaming, including charitable, commercial land-based, and internet sectors involve registering operators, suppliers, retailers/sellers, and gaming assistants. The AGCO administers the regulatory framework governing the issuance of charitable lottery licences (e.g., bingo, raffle, and break open ticket events). Additionally, municipalities as well as First Nations with an Order In Council are authorized to issue charitable lottery licenses The AGCO also approves rules of play or changes to rules of play for games of chance conducted and managed by the Ontario Lottery and Gaming Corporation (OLG), and licenses games of chance at fairs and exhibitions. In addition, the AGCO has requirements to ensure excluded persons (i.e., minors and self-excluded individuals) are not permitted access to gaming premises or online operator platforms in Ontario pursuant to the Gaming Control Act, 1992.

Compliance activities for the lottery and gaming sector include ongoing regulatory assurance activities including inspecting, monitoring, and conducting regular audits of casinos, internet gaming, charitable gaming events/facilities, and retail locations where OLG lottery products are sold. This is done to ensure compliance with the Gaming Control Act, 1992 and its regulation, the Registrar’s Standards, and licence/registration requirements established by the Registrar. The AGCO ensures the safe, responsible and lawful operation of the expanded internet gaming market, consistent with the Gaming Control Act, 1992. It also arbitrates lottery disputes.

In the commercial land-based gaming sector, the AGCO is responsible for ensuring the integrity, security, fairness and audit capability of all electronic gaming hardware, software, associated equipment and gaming systems, including slot machines.
In terms of internet gaming, the AGCO:

• Conducts eligibility assessments to determine whether applicants are suitable to be registered as operators or gaming-related suppliers, which includes independent testing labs (ITLs) and independent integrity monitors.
• Outlines technical standards that are used by ITLs to test and certify, among other things, online games available for Ontario players.
• Conducts ongoing regulatory assurance activities, including regular audits, testing, and site visits, to assess compliance with the Gaming Control Act, 1992 and the Registrar’s Standards for Internet Gaming.

Cannabis

The AGCO licenses Cannabis Retail Store Operators and Managers, authorizes Cannabis Retail Stores, approves Cannabis retail employee training programs, and regulates the sale of recreational cannabis through privately run stores. Cannabis compliance activities include monitoring, inspections, audits, mystery shoppers, and providing education to authorized cannabis retail stores to ensure compliance with the Cannabis Licence Act, 2018, its regulation, and the Registrar’s Standards for Cannabis Retail Stores.

Horse Racing

The AGCO regulates horse racing in Ontario through the Rules of Racing for Thoroughbred, Standardbred, and Quarter Horse breeds. It licenses individuals and businesses involved in the horse racing industry, including racing participants, racetracks and teletheatre locations, and promotes safety and consistency for horse racing participants and horses.

The AGCO ensures compliance with the Rules of Racing by having Racing Officials present to officiate races and investigate alleged rule infractions. It has dedicated inspectors and an Equine Drug Unit that includes membership from the Ontario Provincial Police that conducts out-of-competition drug testing and inspections to ensure appropriate use of therapeutic drugs. The AGCO collaborates with the Canadian Pari-Mutuel Agency which oversees the post-race equine drug testing program to prevent the misuse of equine drugs. It conducts inspections and/or investigations of positive tests and subsequently holds reviews to determine penalties as per the Rules of Racing.

The Horse Racing Appeal Panel, an independent adjudicative tribunal, the members of which are appointed by the AGCO Board, hears appeals of rulings made by Racing Officials and AGCO Deputy Registrars under the Rules of Racing.

Educational Activities

The AGCO proactively provides targeted education to those who are regulated to increase their understanding of regulatory obligations and improve overall compliance. AGCO staff regularly attend industry events and conferences to provide in-person education and support to stakeholders via panel presentations, keynote speakers, and trade show booths. As appropriate, multi-disciplinary teams from across the organization, including individuals from the AGCO’s licensing and registration, policy, and compliance teams, attend these events to offer holistic, direct, and timely education.

Attracting, retaining, and developing our people is one of the AGCO’s four strategic goals. Human Resources priorities support the three pillars of the People Plan: Healthy Workplace, Learning Mindset and Connected Culture.

The AGCO is committed to ensuring operational and service excellence in all aspects of Human Resources programs and services to promote a positive employee experience at all stages of the employee lifecycle, including:

• Talent Acquisition – a key agency-wide process that will be regularly reviewed to implement best practices, be forward-thinking and leverage the latest sourcing approaches to attract and retain talent. Greater emphasis on establishing improved AGCO branding will be integral in establishing it as a “known” and coveted place to work.
• Compensation – wages and benefits are benchmarked against broader public sector comparators to be competitive with the most relevant talent pool market. The compensation strategy will draw clear linkages between performance outcomes and compensation framework decisions where a stronger performance-based renumeration approach will be applied to refresh the compensation program.
• Performance Development Framework – aligns to the newly established core competencies and compensation strategy, applying best practices to support employee and organizational performance.
• Workforce Demographics – agency workforce demographics will be assessed against internal and external environmental trends for forecasting of talent needs and effective planning for business continuity.
• Human Resources Technology – leveraged to enhance the interactions of our employees, as well as, exploring greater self-service options.
• Leadership Development – the AGCO has begun the launch of a new suite of leadership development programs to support the growth of our new and existing leaders in the organization at various levels of leadership. These include:
  • The New Leader Onboarding Program is designed to support new leaders with their arrival and provide a successful transition to their new role.
  • The Emerging Leader Program is designed to provide aspiring leaders within the AGCO with foundational leadership skills connected to our core competencies.
  • The AGCO Leadership Academy Program is designed to further develop and enhance leadership skills, qualities, and competencies of the current management team.

Hybrid Work Model

The Hybrid Work model supports the needs of employees to balance their work and home lives, while maintaining an engaged, productive workforce. The AGCO has fully implemented the directive set out by the provincial government and has completed the transition to working in- office at minimum three days per week while making efforts to foster social connections and support purpose driven gatherings. The model will continue to be monitored for effectiveness and continuous optimization will be regularly explored.

Organizational Chart

The organizational structure is anticipated to remain relatively the same over the next three years given recent changes and is captured in the organizational chart below.
 

Image

AGCO Headcount (as of September 30, 2024)

Bargaining Agent

The bargaining unit for the AGCO is OPSEU Local 565, which represents 73% of the AGCO’s workforce.

The AGCO’s multi-year Diversity, Inclusion and Accessibility (DI&A) strategy focuses on three goals: having a workforce reflective of Ontario's demographic diversity, building an inclusive workplace culture, free from discrimination and harassment, and delivering services in an accessible, culturally aware and responsive way.

The key priorities that will contribute to the DI&A Strategy include:

• Demographic Data – Ongoing completion of the annual employee census will provide valuable information required to invest in employee development and succession planning in an equitable manner.
• Integrate DI&A into programs and processes – All training, programs, policies and procedures will be regularly reviewed to include diversity, equity, inclusion and anti- racism principles and practices.
   

The AGCO’s Communications Plan will continue to build on past successes by ensuring clear, timely, and customer-centric messaging across all stakeholder groups. Our approach will prioritize delivering essential information through diverse, accessible, and omni-channel platforms to align communications with the AGCO’s strategic priorities. By promoting trust, engagement, and transparency, this strategy will support the AGCO's overarching objectives while promoting a culture of responsibility, particularly in alcohol, horse racing, lottery and gaming, and cannabis markets.

Key initiatives during this period include robust media relations, strategic support for Liquor Retail Expansion, and campaigns promoting the AGCO’s responsible gambling and responsible alcohol and cannabis sales. A dedicated communications campaign to combat the illicit cannabis market will be a priority, focusing on collaboration with stakeholders to raise awareness, encourage compliance and support enforcement. As part of our broader communications efforts, we will continue to promote public education that emphasizes the AGCO’s mandate and role in safeguarding the public.

Our "Digital by Default" strategy will guide ongoing digital platform enhancements, focusing on optimizing user experience through continuous content updates, Accessibility for Ontarians with Disabilities Act (AODA) compliance, and customer feedback.

AGCO Website

The AGCO website, agco.ca, continues to serve as the primary information and communication hub for both new and existing licensees, providing essential resources while acting as the gateway to the iAGCO online service portal. Following a major refresh in 2024, the website was redesigned with a focus on simplifying navigation, enhancing accessibility, and delivering clear, concise content. This user-centered approach ensures that vital information is easily accessible, reinforcing the AGCO’s commitment to transparency and public trust.

Looking ahead, the website will continue to evolve to meet the needs of its diverse audience, particularly as a business support tool. New features will focus on improving user journeys to make business transactions with the AGCO faster and easier, allowing both new and existing licensees to access services more efficiently. The website will prioritize AODA compliance, offering content in both official languages, while delivering an engaging user experience that highlights the AGCO role, achievements, and value to Ontarians.

Additionally, privacy and information security will remain top priorities as we continue to streamline internal processes for content management. By reducing the administrative burden on AGCO staff and providing a more seamless experience for users, the website will play a key role in supporting the AGCO’s broader communications strategy, aligning with our goals to deliver accessible, responsive service across all digital platforms.

The AGCO relies on digital platforms to deliver accessible, reliable, secure, and customer- centric services to Ontarians. In line with the Government of Ontario’s Digital Service focus and commitment towards new digital practices and technologies to deliver simpler, faster, and better services to Ontarians, the I+IT plan enables the AGCO’s mandate of being innovative, sustainable, and accountable in key I+IT strategic areas, including:

• Digital Transformation: The AGCO’s Digital Strategy enables the agency to seize opportunities in a digital and data-driven world, harnessing innovation to be more effective, efficient, and agile. As the needs and capabilities of its regulated sectors evolve, the AGCO Digital Program is responsible for managing a digital strategy roadmap and maturity plan, advising on change, and driving business value against performance measures. The AGCO aims to be a leading digital regulator by leveraging technology to enhance customer and stakeholder experience, driving efficiency and effectiveness through data, automation, and AI, embedding deliberate actions to keep pace with regulated sector changes and innovation, and establishing foundational infrastructure to support digital enablement over time.
• Foster Data-Centric Culture: The AGCO will continue maturing its Data and Analytics Program to identify business priorities and develop data analytics solutions. Examples include internal self-service analytics to support regulation and employing artificial intelligence (AI) for risk-based, data-driven compliance. The Data Governance and Information Management program is focused on developing and deploying Records and Information Management practices across AGCO and overseeing Privacy and Data Governance of AGCO’s data and information assets. Together, these efforts provide AGCO with valuable insights to drive data-driven decision-making while safeguarding information assets.
• Modernize IT Foundation: At the center of the AGCO’s digital-service approach is the iAGCO platform, which enables digital processing and management of regulatory operations for its regulated sectors. To ensure alignment and integration of iAGCO and other digital products into a centrally managed portfolio, the AGCO has adopted Digital Product Management practices. These practices ensure customer-focused systems are available in a timely, cost-effective manner using agile delivery methodologies and roadmaps aligned with long-term strategic business needs. Additionally, the AGCO continues to modernize legacy systems and infrastructure into flexible, scalable cloud environments as a foundational step aligned to its Digital Strategy.
• Build Cyber Resilience: The AGCO continues to invest in people, processes, and technology to reduce the risk of cyber-attacks, protect personal information, and enhance response and recovery capabilities. This is demonstrated by the maturation of its Cybersecurity Program, which includes implementing controls to monitor unauthorized network and system access, protect against phishing and social engineering, provide advanced email security using AI and machine learning, and educate users through training and simulated phishing emails. Additionally, the AGCO will implement a disaster recovery service to ensure the protection and recovery of essential business data in the event of significant disruptions to IT operations, such as a loss of equipment or a successful ransomware attack.
• Maximize I+IT Agency Impact: Recognizing the constantly evolving business and regulatory environment, the AGCO has introduced an Innovation and Insights function to develop an innovation ecosystem that accelerates organizational learning and growth through research and incubation of technology and data solutions. The Innovation & Insights function will play a crucial role in advancing the agency's digital ambitions, significantly enhancing service delivery and operations, leading to improved service satisfaction, higher productivity, enhanced regulatory effectiveness, and the exploration of AI and new digital capabilities across the agency.

I+IT enables the delivery of major programs and priorities aligned with the AGCO’s mandate, such as support to increasing choice and convenience for consumers in the safe and responsible sale of beverage alcohol in Ontario; through its digital platforms and in taking innovative approaches that automates processes removing regulatory burden. The AGCO has established a strategic portfolio management practice ensuring sustainable public service delivery and an optimized organizational capacity to deliver against the agency’s priorities. This work will involve continued efforts to mature the AGCO’s I+IT management systems that drives strategic planning, performance measurement accountability, cost optimization, vendor and workforce management.

The AGCO will foster a digitally ready workforce equipped with the necessary skillsets, data literacy, and technological aptitude to thrive in this new digital reality. By combining strategic planning with focused and prioritized execution, I+IT will be a catalyst for the AGCO to adapt and flourish in an increasingly digital environment. This approach will ensure that employees are well-prepared to leverage technology effectively, driving innovation and enhancing overall organizational performance. Through continuous I+IT learning and development, the AGCO will be able to meet the evolving demands of its regulated sectors and achieve its strategic objectives.
 

The AGCO continues to be committed to cultivating collaborative relationships and partnerships with the various levels of government within Canada. This includes memoranda of understanding with key regulators that outline clear roles and responsibilities for sharing relevant information and best practices.

AGCO staff regularly attend industry events and conferences to provide in-person education and support to stakeholders via panel presentations, keynote speakers, and trade shows. The AGCO will continue to engage with our licensees to understand the evolving needs of their businesses.

The agency is actively exploring opportunities to address the illegal cannabis market with important emphasis on collaboration with provincial partners, including the Ontario Cannabis Store, Ontario Provincial Police, and social responsibility and public health groups.

The AGCO recognizes the value in maintaining and building strong relationships with clear accountabilities and will continue to leverage existing relationships and proactively establish new ones with other regulators and organizations to promote collaboration, information exchange, and enhance due diligence processes including strengthening current memoranda of understanding and forging new agreements.