Canadian regulator penalises casinos for unapproved software
The Alcohol and Gaming Commission of Ontario (AGCO) has fined Great Canadian Entertainment (GCE) CAD120,000 ($84,384) after discovering there were unauthorised gaming software at four casinos across the province.
AGCO, Ontario’s arm’s-length regulator, oversees alcohol, gaming, horse racing, and cannabis retail. Its mandate is to ensure these sectors operate with honesty, integrity, and in the public interest. The commission has authority to impose fines, suspend or revoke licences, and issue compliance orders.
In addition, the province’s regulatory model is perceived as one of the most risk-based but also flexible frameworks globally. It balances consumer protection, industry innovation, and public confidence in gaming integrity. Surveys show that more than 91 per cent of Ontario players now prefer licenced platforms, reflecting growing trust in regulated casinos and iGaming, according to several media outlets.
While most other jurisdictions, including Quebec, British Columbia, and Alberta, retain government-run monopolies, Ontario stands out as Canada’s only province because of its fully open, competitive iGaming market. That makes Ontario unique in offering dozens of licenced private operators under strict AGCO oversight, compared to limited single platform options elsewhere.
Details of the violation
In a news release Monday, AGCO reported 40 instances of revoked or unapproved bill validator software installed at casinos in February and March 2025. But the regulator did not disclose which properties were involved.
GCE, headquartered in North York, Ontario, is one of Canada’s largest gaming and hospitality operators. It runs 23 properties across Ontario, British Columbia, New Brunswick, and Nova Scotia, including the country’s largest casino resort in Toronto.
This is not GCE’s first compliance issue. Last year, AGCO issued penalties totalling CAD350,000 ($246,120) against Great Canadian Casino Resort Toronto for multiple violations of provincial gaming standards, including allowing a spontaneous after-party on the gaming floor in the pre-dawn hours.
Role of bill validators
Ontario casinos must comply with AGCO’s Registrar’s Standards for Gaming, which set risk-based requirements covering responsible gambling, game integrity, public safety, and prevention of unlawful activity. These standards are legally binding under the Gaming Control Act, 1992.
Bill validators are essential to gaming machines, as they verify the authenticity and value of cash inserted. Moreover, AGCO has stressed that these devices “must undergo rigorous testing and approval” to ensure they operate reliably and perform critical functions.
Casinos are also required to monitor cash transactions to prevent fraud and criminal activity, and to offer tools such as self-exclusion and limit-setting to protect vulnerable players.
Operator responsibilities
The regulator emphasised that casino operators are responsible for ensuring any changes to gaming systems are “properly reviewed, tested, and authorised” before implementation.
AGCO chief executive officer and registrar Dr. Karin Schnarr stated: “When unauthorised software is used in a live casino environment, it bypasses critical safeguards that are meant to uphold the integrity of gaming and the public’s confidence in the system.”
She added that the commission will continue to hold operators accountable for meeting Ontario’s high standards of gaming integrity.
AGCO fines Great Canadian Entertainment $120,000 for using unauthorized gaming system software at four casinos.
— Alcohol and Gaming Commission of Ontario (@Ont_AGCO) June 29, 2026
Learn more: https://t.co/gQl0sAN2SO pic.twitter.com/OBWmcZPw36
Right to appeal
Under provincial rules, casino operators who have been issued a monetary penalty have the right to appeal the registrar’s action to the Licence Appeal Tribunal within 15 days.
Casinos contribute billions in wagers annually, with the resulting gross gaming revenue reinvested in healthcare, education, and municipal budgets. Municipalities hosting casinos, such as Toronto and Ajax, also receive direct allocations. The industry employs thousands across Ontario in gaming, hospitality, and entertainment.
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