AGCO modernizes risk-based licensing conditions to enhance public safety and reduce regulatory burden

The Alcohol and Gaming Commission of Ontario (AGCO) is modernizing its approach to risk-based liquor sales licensing as part of its commitment to smart, modern and effective regulation.

Following a thorough review, the Board of the AGCO removed several risk-based licensing conditions that were identified as duplicative, outdated or unnecessary. This streamlining allows the AGCO to focus its resources on the areas of highest risk, strengthening its ability to protect the public and support a safe, responsible and vibrant alcohol industry in Ontario.

Please see below for the full list of removed conditions.

A smart approach to regulation

Risk-based conditions are an important tool that may be imposed on a liquor sales licence to help licensees operating in higher-risk environments meet their obligations under the Liquor Licence and Control Act, 2019 (LLCA). While the AGCO’s review confirmed the core principles of risk-based licensing, it also identified an opportunity to improve the system by removing conditions that no longer serve their intended purpose.

This initiative reflects AGCO’s strategic goal to foster industry sustainability and innovation, reduce regulatory burden, and focus on the areas where regulation delivers the greatest value.

Why these conditions are being removed:

• Clarifying jurisdiction and removing duplication: Some conditions duplicated existing provincial laws or municipal bylaws (e.g., noise, occupancy limits). Removing these redundant conditions clarifies that licensees are accountable to the primary authority (such as their local municipality) while remaining fully accountable to AGCO for all provincial requirements.
• Aligning with current standards: Several conditions are already covered by the comprehensive requirements of the LLCA and its regulations. Removing them eliminates unnecessary overlap and makes compliance clearer and more straightforward for businesses.
• Eliminating outdated or unused conditions: As the industry evolves, some rules become obsolete. Other conditions were developed proactively but were never applied in practice, serving no real-world regulatory function. Removing them is a matter of good governance.

What this means for businesses and the public

These changes are part of the AGCO’s ongoing efforts to build a regulatory framework that is easier to understand and follow. Removing unnecessary administrative layers enables responsible businesses to thrive, while sharpening the agency’s focus on enforcing the rules that matter most for public safety. 

Helpful links

• Manage your liquor sales licence
• Liquor Sales Licence — Risk-Based Licensing
• Risk Based Licensing Criteria and Conditions

Questions

For questions about your liquor licence and/or licence conditions, please contact AGCO Customer Service:

• 416-326-8700 or 1-800-522-2876 (toll-free in Ontario)
• Monday - Friday, 8:30 a.m. to 5:00 p.m. (EST)
• customer.service@agco.ca  
• Ask a question through iAGCO

Removed Conditions

1. The holder of the licence shall comply with any terms, conditions or other requirements of any business or similar licence, permit or authorization issued by any governmental authority, including a municipal or regional government.
2. The holder of the licence shall ensure that it operates the premises in compliance with the policies of the franchisor, including policies with respect to security, sale and service of liquor, the licensee’s internal controls and training of staff.
3. The holder of the licence shall have in place and comply with the internal controls of the licensee that are approved in writing by the Registrar.
4. The holder of the licence shall not provide or permit amplified music or other forms of entertainment in outdoor areas or to be directed towards outdoor areas.
5. The holder of the licence shall immediately notify the Registrar of any charges laid and/or tickets issued to the licensee in relation to contraventions of noise bylaws.
6. The holder of the licence shall limit occupancy to no more than [situation-specific number] persons for the following areas (INDOOR, OUTDOOR, or INDOOR and OUTDOOR).
7. The holder of the licence shall operate the premises in accordance with the information provided to the Registrar.
8. The holder of the licence shall notify the Registrar in writing at least 10 business days prior to any event at the premises [banquet hall, boat].
9. The holder of the licence shall not operate or permit to be operated at the premises to which the licence applies any business other than the sale and service of liquor and food.
10. The holder of the licence shall not operate or permit to be operated at the premises to which the licence applies any business other than the sale and service of liquor and food, the sale of articles incidental to the sale and service of liquor and food, the sale of lottery tickets distributed under a government licence, or the provision of entertainment ancillary to the sale and service of liquor and food.
11. The holder of the licence shall post clear external signage informing the public that the service of liquor is provided in the establishment.
12. The holder of the licence shall remain in compliance with the AGCO Bingo Revenue Model.
13. The holder of the licence shall not permit the sale or service of liquor in the following areas of the establishment where the primary use of the area is not the sale and service of liquor and light meals: [AREAS]
14. The holder of the licence shall file with the Registrar and comply with stated measures to ensure that there is no illegal gambling in the premises by DATE.
15. The holder of the licence shall file with the Registrar and comply with stated measures to ensure that there is no illegal drug use or sale in or adjacent to the premises by DATE.
16. The holder of the licence shall file with the Registrar and comply with stated measures to ensure that there is no solicitation for purposes of prostitution in or adjacent to the premises by DATE.
17. The holder of the licence shall not apply for an increase in capacity.
18. The holder of the licence shall not apply for any alteration(s) to the licensed boundary.
19. The holder of the licence shall not conduct or permit athletic contests, sports or any such activities to take place at the premises to which the licence applies.
20. The holder of the licence shall provide notice to the Registrar at least [situation-specific number] days prior to an event for which there will be a temporary or occasional tiered seating area into which liquor will be permitted.
21. The holder of the licence shall not sell, serve, or allow for the possession of liquor in the tiered seating section of the premises during sporting events at which the majority of the participants are under 19 years of age.
22. The holder of the licence shall ensure that a valid municipal council resolution is in place that approves the service of liquor in the tiered seating area.
23. The holder of the licence shall ensure that the premises have available during operating hours [situation-specific number] parking spots.
24. The holder of the licence shall ensure that all liquor containers and garbage are kept in an enclosed and secure container(s).
25. The holder of the licence shall ensure that the areas adjacent to and within [situation-specific number] metres of the premises are kept clean and free from any garbage associated with the operation of the premises and patrons.
26. The holder of the licence shall ensure that there is a designated and supervised area for smokers that does not adversely affect property adjacent to the premises.
27. The holder of the licence (applicant for a licence) shall consult with such governmental or other authorities as the Registrar may specify prior to submitting TYPE OF PLAN to the Registrar for review and approval.
28. The holder of the licence (applicant for a licence) shall consult with such governmental or other authorities as the Registrar may specify prior to submitting TYPE OF PLAN to the Registrar for review and filing.

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