Ontario Gaming Supplier Regulatory Overview

Introduction

Casino gaming in Ontario is regulated by the Alcohol and Gaming Commission of Ontario ("Commission"). The Gaming Control Act of 1992 ("Act") provides a legal framework for commercial gaming within the province. The Commission has also established administrative rules and regulations ("Rules") in accordance with the Act.

It is important to note that the Commission oversees both charitable and commercial gaming activities in the province. In general, charitable gaming and lottery activities are operated by the province. The following information relates solely to commercial casino operations in Ontario and does not consider the rules and regulations regarding charitable gaming.

Gaming Supplier License Requirements

All individuals and entities that manufacture, maintain, install, provide, or repair gaming equipment that has the ability to alter play of a casino game must first be licensed as a Gaming-Related Supplier. Manufacturers and suppliers of gaming management software or security systems must also be licensed as a Gaming-Related Supplier.¹

Duration

A Gaming-Related Supplier License is valid for a period of four years.²

Fees

The application fee for a Gaming-Related Supplier is C$15,000. Once a Gaming-Related Supplier License is issued, there is a C$15,000 annual fee.³
Required Documents and Information

The following information is necessary to complete the Application for Registration as a Gaming-Related Supplier:

1. Basic identity information;
2. Type of business structure;
3. List of the identities of all officers and directors;
4. Criminal history;
5. Civil proceeding history, past 10 years;
6. Bankruptcy history;
7. Whether the applicant has ever applied for a gaming or other professional/trade permit, license, or registration in any jurisdiction;
8. Any actions taken on gaming or other professional/trade license in any jurisdiction;
9. Whether the applicant holds an Ontario liquor license;
10. Description of services provided to gaming facilities in Ontario; and
11. Anticipated annual volume of business with gaming facilities in Ontario.⁴

The following documents are necessary to complete the Application for Registration as a Gaming-Related Supplier:

1. List of all other names and addresses under which the applicant has conducted business, past 10 years;
2. Copy of Extra Provincial license, if applicable;
3. Articles of incorporation, bylaws, charter, and other organizational documents;
4. Business Name registration;
5. List of all associated individuals and entities;
6. Organizational chart;
7. Shareholder list;
8. Written or unwritten agreements with a licensed casino or gaming facility in Ontario;
9. Financial statements, past five years;
10. Annual reports, past five years;
11. Tax returns, past five years;
12. Description of material debt; and
13. List of financial institutions where accounts are held, past 10 years.⁵

Non-Gaming Related Supplier License Requirements

All individuals or entities that provide goods and services that relate to the construction, furnishing, repair, maintenance, or business of a casino but are not directly related to the playing of games of chance must be licensed as a Non-Gaming Related Supplier.⁶ Exemptions exist for Non-Gaming Related Suppliers who offer less than C$100,000 worth of goods or services to a single casino in a single year, less than C$300,000 to multiple casinos within a single year, or which are regulated by other governmental entities that provide an adequate level of due diligence regarding the applicant.⁷

Duration

A Non-Gaming Related Supplier License is valid for a period of four years.⁸

Fees

The application fee for a Non-Gaming Related Supplier is C$2,000. Once a Non-Gaming Related Supplier License is issued, there is a C$2,000 annual fee.⁹ Applicants may also be charged investigative costs incurred by the Commission in connection with its review of the application.

Required Documents and Information

The following information is necessary to complete the Application for Registration as a Non-Gaming Related Supplier:

1. Basic identity information;
2. Type of business structure;
3. List of the identities of all officers and directors;
4. Criminal history;
5. Civil proceeding history, past 10 years;
6. Bankruptcy history;
7. Whether the applicant has ever applied for a gaming or other professional/trade permit, license, or registration in any jurisdiction;
8. Any actions taken on gaming or other professional/trade license in any jurisdiction;
9. Whether the applicant holds an Ontario liquor license;
10. Description of services provided to gaming facilities in Ontario; and
11. Anticipated annual volume of business with gaming facilities in Ontario.¹⁰

The following documents are necessary to complete the Application for Registration as a Non-Gaming Related Supplier:

1. List of all other names and addresses under which the applicant has conducted business, past 10 years;
2. Copy of Extra Provincial license, if applicable;
3. Articles of incorporation, bylaws, charter, and other organizational documents;
4. Business Name registration;
5. List of all associated individuals and entities;
6. Organizational chart;
7. Shareholder list;
8. Written or unwritten agreements with a licensed casino or gaming facility in Ontario;
9. Financial statements, past one year;
10. Annual reports, past one year;
11. Tax returns, past one year;
12. Description of material debt; and
13. List of financial institutions where accounts are held, past 10 years.¹¹

Gaming Principal Disclosure Requirements

Officers, directors, partners, and other principal employees of an applicant for a Gaming-Related Supplier License must complete the Personal Disclosure Form, to be submitted in connection with the corporate Application for Registration as a Gaming-Related Supplier. Sales representatives that deal directly with the casino, signatories to agreements regarding goods or services provided to the casino, supervisors of the aforementioned individuals, and office managers of the aforementioned individuals are considered principal employees. Those individuals who own 5 percent or more of any class of stock in the corporate applicant must also complete a Personal Disclosure Form.

Duration

Because the Personal Disclosure Form is an attachment to the Application for Registration as a Gaming-Related Supplier, there is no license issued other than on the corporate level.

Fees

Because the Personal Disclosure Form is an attachment to the Application for Registration as a Gaming-Related Supplier, there is no fee associated with the Personal Disclosure Form. However, the corporate applicant may be required to pay the costs of background investigations conducted in connection with review of the Personal Disclosure Form.

Required Documents and Information

The following information is necessary for completion of the Personal Disclosure Form:

1. Basic identity information;
2. Residence data, past 10 years;
3. Employment history, past 10 years;
4. Whether the applicant has ever been discharged from employment;
5. Ownership interests held in any business;
6. Whether the applicant has ever served in a position of trust;
7. Criminal history;
8. Civil proceedings history;
9. Whether the applicant holds or has applied for any gaming, professional, or trade licenses in any jurisdiction;
10. Any action taken on gaming, professional, or trade licenses in any jurisdiction;
11. Bankruptcy history;
12. Garnishment history;
13. Statement of annual income;
14. Statement of assets;
15. Statement of liabilities;
16. Statement of net worth;
17. Amount of cash in banks;
18. Accounts and notes receivable;
19. Stocks and bonds held;
20. Business investments;
21. Real estate held;
22. Other assets held;
23. Notes payable;
24. Mortgages payable; and
25. Other liabilities and contingent liabilities.¹²

The following documents are necessary for completion of the Personal Disclosure Form:

1. Color photograph; and
2. Tax returns, past five years.¹³

Non-Gaming Principal Employee License Requirements

Officers, directors, partners, and other principal employees of an applicant for a Non-Gaming Related Supplier license must complete the Personal Disclosure Form, to be submitted in connection with the corporate Application for Registration as a Non-Gaming Related Supplier. Sales representatives that deal directly with the casino, signatories to agreements regarding goods or services provided to the casino, supervisors of the aforementioned individuals, and office managers of the aforementioned individuals are considered principal employees. Those individuals who own 5 percent or more of any class of stock in the corporate applicant must also complete a Personal Disclosure Form.

Duration

Because the Personal Disclosure Form is an attachment to the Application for Registration as a Non-Gaming Related Supplier, there is no license issued other than on the corporate level.

Fees

Because the Personal Disclosure Form is an attachment to the Application for Registration as a Non-Gaming Related Supplier, there is no fee associated with the Personal Disclosure Form. However, the corporate applicant may be required to pay the costs of background investigations conducted in connection with review of the Personal Disclosure Form.

Required Documents and Information

The following information is necessary for completion of the Personal Disclosure Form:

1. Basic identity information;
2. Residence data, past 10 years;
3. Employment history, past 10 years;
4. Whether the applicant has ever been discharged from employment;
5. Ownership interests held in any business;
6. Whether the applicant has ever served in a position of trust;
7. Criminal history;
8. Civil proceedings history;
9. Whether the applicant holds or has applied for any gaming, professional, or trade licenses in any jurisdiction;
10. Any action taken on gaming, professional, or trade licenses in any jurisdiction;
11. Bankruptcy history; and
12. Garnishment history.¹⁴

The following documents are necessary for completion of the Personal Disclosure Form:

1. Color photograph; and
2. Tax returns, past one year.¹⁵

Licensing Process

After the Commission receives and reviews a completed licensing application, the Commission must consider the application and choose to grant or refuse to grant a license.¹⁶ If granted, then the Commission will issue a certificate of registration to the applicant that includes the expiration date of the license.¹⁷

Disclosure and Reporting Requirements

Before License Is Issued

An applicant must notify the Commission of any material changes in any information contained in a submitted application in writing within five days of the change.

After License Is Issued

License holders must adhere to standards put forth by the Commission regarding recording and maintaining financial and related information in a timely, accurate, and auditable manner.¹⁸

If there is any change to the makeup of the officers, directors, partners, or 5 percent or more stockholders, then the licensee must notify the Commission within five days of the change.¹⁹

If a licensee becomes aware that there is a problem with a gaming device that affects the integrity of the game, then the licensee must notify the Commission in writing immediately.²⁰

Gaming Technology Standards

All licensed entities must comply with standards regarding goods and services put forth by the Commission regarding games of chance.²¹

All gaming devices (including chips and tokens) must be approved by the Commission before they are put into use at a gaming facility.²² The Commission has the authority to waive the testing and approval requirements related to gaming equipment if the device has been adequately tested and approved in another gaming jurisdiction.²³

Exemptions

Individuals or entities who offer non-gaming goods or services valued at less than C$100,000 to a single casino in a single year, less than C$300,000 to multiple casinos within a single year, or who are regulated by other governmental entities that provide an adequate level of due diligence regarding the applicant may seek exemption from registration as a Non-Gaming Related Supplier.²⁴ There is a C$200 fee due at the time that the exemption is filed.²⁵

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¹O Reg 385/99, s. 1; s. 4.
²Reg 385/99, s. 11(5).
³http://www.agco.on.ca/en/whatwedo/fees_commercial.aspx.
⁴'Application for Registration as a Gaming-Related Supplier, Non-Gaming Related Supplier, and/or Lottery Equipment Supplier.'
⁵'Application for Registration as a Gaming-Related Supplier, Non-Gaming Related Supplier, and/or Lottery Equipment Supplier.'
⁶O Reg 385/99, s. 1; s. 5(1).
⁷O Reg 385/99, s. 5(2).
⁸O Reg 385/99, s. 11(5).
⁹http://www.agco.on.ca/en/whatwedo/fees_commercial.aspx.
¹⁰'Application for Registration as a Gaming-Related Supplier, Non-Gaming Related Supplier, and/or Lottery Equipment Supplier.'
¹¹'Application for Registration as a Gaming-Related Supplier, Non-Gaming Related Supplier, and/or Lottery Equipment Supplier.'
¹²Personal Disclosure Form.
¹³Personal Disclosure Form.
¹⁴Personal Disclosure Form.
¹⁵Personal Disclosure Form.
¹⁶O Reg 385/99, s. 11(1).
¹⁷O Reg 385/99, s. 11(4).
¹⁸O Reg 385/99, s. 15(b).
¹⁹O Reg 385/99, s. 34.
²⁰O Reg 385/99, s. 21(5).
²¹O Reg 385/99, s. 15(a).
²²O Reg 385/99, s. 21(1).
²³O Reg 385/99, s. 21(4)(c).
²⁴O Reg 385/99, s. 5(2).
²⁵http://www.agco.on.ca/en/whatwedo/fees_commercial.aspx.