Licensed gaming operators in Ontario are growing increasingly frustrated with the leniency being shown to other operators trying to become licensed, after new provincial regulations came into effect in early April.
Those who did comply with the process before the April 4 cut-off date had to pay a licensing fee of $100,000 and agree to a new tax rate of 20 percent. However, a large number of operators are still in the new accreditation process, but local authorities have allowed them to continue operating, much to the chagrin of licensed operators.
The two agencies responsible for overseeing the Ontario gaming market, iGaming Ontario (IGO) and the Alcohol and Gaming Commission of Ontario (AGCO), have not commented on how strictly they are monitoring non-licensed operators, including those who are in the middle of the licensing process and those who have yet to apply.
The AGCO, however, did release a statement saying that the agency is focused on facilitating “a business-like transition for those who had been operating in the unregulated market.” The agency also added that they expect applicants to “conclude all necessary steps” as soon as possible.
According to companies who did coincide with the province’s regulations, the process takes about 90 days to complete, and new groups of operators are expected to fall under compliance over the next two months or so as applications continue to be processed.
That being said, many of those companies awaiting verification are still operating as normal, which has essentially created a black market of sorts.
In an interview with Sports Handle, one anonymous licensed operator said that numerous companies are operating “without paying any tax or being held under the regulatory rules.” The aggrieved executive lamented the fact that advertising is very difficult for regulated companies, but unlicensed operators are reaping the benefits of “national media companies promoting brands that are operating unregulated books.”
Some companies are licensed elsewhere but still hold operations in Ontario, such as BetRegal, a sportsbook licensed in Malta. This arrangement was originally supposed to be barred by regulators, but this appears to have changed, as BetRegal representatives have said they’ve been informed that the requirement no longer applies.
The company will continue to operate as normal until their new provincial license is awarded, and several others are believed to have similar arrangements. The 20 percent tax rate will not be applied until the new licenses are in place, while those who complied with the April 4 launch have been paying the increased rate since that day.
