Section 11: Three-year Financial Plan and Budget

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The AGCO receives its annual spending authority from the Ministry of the Attorney General annual Printed Estimates, as approved by the Ontario Legislature. The AGCO’s expenses are offset by a combination of recoveries and base funding from government.  

Multi-Year Operating Budget (in $000s)  

Expense Category2023-242023-24Variance2024-252025-262026-27
Budget *Forecast *BudgetBudgetBudget  
Salaries & Wages75,946.0074,174.101,771.9075,837.4075,837.4075,837.40
Transportation & Communications1,545.801,537.808.001,540.601,540.601,540.60
Supplies & Equipment967.901,006.10-38.20962.60962.60962.60
Less: Recoveries74,169.8042,640.7031,529.1060,825.3060,825.3060,825.30
Net Total50,822.7068,205.50-17,382.8050,624.2050,624.2050,624.20
Revenue **44,848.8144,848.81-50,008.2946,124.0549,205.52
  • * 2023-24 Budget and Forecast (as of Q2 2023-24) do not include expenditures paid on behalf of iGaming Ontario (iGO). Forecasted iGO direct costs incurred by the AGCO on behalf of iGO are $12.1M.  
  • ** Represents forecasted revenue figures that have been submitted through the 2024-25 Strategic Planning Process (SPP); includes impact of PSAS accounting standard PS 3400 which went into effect on April 1, 2023.  

AGCO Revenue – Key Explanations  

  • Beginning on April 1, 2023, the AGCO began recognizing inflows from the Horse Racing sector as revenue; previously, inflows were used to directly offset Horse Racing regulatory costs as recoveries.  
  • Revenue from internet gaming (e.g., registration fees) continues to increase with the rise in the number of live igaming sites. As of October 2023, there are 63 live sites and a total of 70 sites are forecasted to be live by the end of 2023-24.  

AGCO Expenditures and Recoveries – Key Explanations

  • The overall forecasted $17.4M net total variance in 2023-24 (as of Q2) between net operating budget and forecast is mainly due to a combination of:  
    • Forecasted underspending of approximately $1.7M in salaries and benefits, primarily due to employee turnover and vacancies.  
    • Forecasted underspending of $12.9M in services related to the cost of external consultants used to assist in eligibility assessments; note that the $12.9M in underspending is planned to be reallocated to the 2024-25 budget through the 2024-25 Strategic Planning Process (SPP).  
    • Forecasted under recoveries of $31.5M between budget and forecast due to the AGCO’s current funding framework and authorities in place.  

AGCO Capital Assets – Key Explanations  

  • The Capital Budget includes iAGCO betterments to support and enhance iAGCO for the new iGaming Open Market line of business, liquor reform, and other government-driven policy changes.  
  • The Capital Budget also includes IT hardware for the purchase of personal computing devices, mainframes, data network equipment, and storage devices.
  • Underspending of $1.1M in Capital Assets in 2023-24 is planned to be reallocated to the 2024-25 budget through the 2024-25 Strategic Planning Process (SPP).