A gaming license is a document that allows casinos and sportsbooks to work legally. Obtaining it is a significant step for each iGaming company owner. Despite the fact that the license acquisition procedure could indeed be complicated and expensive, it is the best contribution to your business. So, why is it so important?
Firstly, operating an unlicensed gaming platform is simply illegal and can lead to huge legal problems. Secondly, without a license, you are not able to buy official software or gaming content for a virtual casino. Last but not least, players do not trust websites without a license, since the absence of one threatens the possibility of facing fraud, leakage of personal data, loss of deposits or other unpleasant consequences. At the same time, a license is a guarantor of compliance with quality and safety standards, and therefore the key to client trust.
Keep reading to learn about the first Canadian province to open its doors to foreign remote operators.
Ontario iGaming license
Ontario is one of the most gambling-friendly provinces in Canada. In the spring of 2022, iGaming was legalized on its territory. Now any foreign operator can register the gambling business in Ontario and start providing services in the jurisdiction. To do this, you need to sign an agreement with iGaming Ontario and obtain a license for an online casino from the local gambling authority.
Let’s figure out what is required to acquire an Ontario permit and which steps you have to take.
Requirements for operators
The Alcohol and Gaming Commission of Ontario (AGCO) is the gambling and licensing authority in Ontario. The regulator imposes strict requirements on applicants, compliance with which is a prerequisite for issuing a license. Thus, to obtain a permit, the operator should:
- Register an entity and open an office in the province;
- Prepare a complete package of documentation about the company, its key persons and services. It should include a business plan, information about the financial condition, the origin of funds, management team, games provided, marketing strategy, etc.;
- Take a compliance test in a third-party independent laboratory. Its staff will evaluate if your platform meets security and fair gaming standards. If you pass, you will be issued a certificate of compliance, which must be presented to the licensing commission;
- Provide a description of the responsible gaming program created for your business. This may include a responsible gambling policy, some educational materials for players that informe about the dangers of excessive gambling, and the mechanism of identifying and resolving potential problems.
- Fill out the application and pay the licensing fee.
Licensing procedure in Ontario
Let’s now define an algorithm of actions to obtain an Ontario license. In order to get a permit, you need:
- To ensure that your business meets all the requirements, collect all mandatory documents and obtain needed certificates.
- To apply for a license to the AGCO.
- To pay licensing fees.
- To go through a thorough background check of your business and management team.
- To sign an agreement with iGaming Ontario.
- To get a license allowing you to legally work in Ontario.
Related expenses
The annual fee for operating in Ontario is CAD 100,000 ($77,348) for each gambling website.
Advantages and disadvantages of an Ontario license
So why is it worth getting an Ontario license, even though it requires a lot of effort?
- Canadians adore online gambling. This means that local licensees will always have customers;
- Since Ontario has legalized iGaming, its license represents a unique opportunity to operate as a “white” casino in Canada;
- Strict industry control and close checks of potential licensees give Ontario permits a positive reputation on the world stage;
- The licensing procedure in the province is quite transparent and understandable.
What about the pitfalls? The main one is the rather strict conditions for obtaining a license. Endless red tape, obtaining a certificate of compliance and creating a high-quality responsible gaming program – these and other challenges await applicants. To simplify the procedure and avoid fatal mistakes, you can seek advice from specialists.
Conclusion
Getting an Ontario license isn’t easy, but it’s absolutely worthwhile. The reward for your efforts will be the opportunity to legally work in a large and promising market, buy official games and use widespread payment systems. Feel free to contact us if you have any questions or need more information about online gambling in Ontario. LicensingAid keeps its finger on the pulse and has the most up-to-date information on the iGaming industry.
