Ontario regulator cracks down on illegal slot machines
The Alcohol and Gaming Commission of Ontario (AGCO) has revoked the lottery retailer licences of several businesses in the Greater Toronto Area (GTA) for operating unlicensed electronic gambling machines branded as Prime Slot. These devices were found in locations such as supermarkets and convenience stores. The enforcement action forms part of AGCO’s broader efforts to address unauthorised gambling, particularly in areas accessible to minors.
Unlicensed prime slot machines identified
In recent years, AGCO has intensified its enforcement activities, focusing on unlicensed gambling operations and non-compliant retailers. The commission has prioritised preventing unauthorised gaming machines from being installed in public spaces, especially those frequented by young people.
Several Prime Slot-branded machines were discovered in retail establishments across the GTA. Although manufacturers marketed these machines as skill-based games, AGCO determined they operated as games of chance. Under Ontario law, such machines require regulatory approval. Their presence in public retail spaces led to enforcement action.
Crackdown on non-compliant retailers
AGCO has taken action against multiple businesses in the GTA for without proper authorisation. While the exact number of affected locations has not been disclosed, reports indicate that dozens of licences were revoked following investigations.
According to the AGCO, the retailers violated regulations by operating unapproved electronic gaming machines, misrepresenting them as legal skill-based games, and failing to obtain the necessary regulatory authorisation for their installation and use.
AGCO CEO Dr Karin Schnarr stated that unlicensed gambling machines should not be present in retail environments, particularly those accessible to children. She emphasised that protecting youth and vulnerable populations from exposure to gambling remains a key regulatory priority.
Schnarr said, “Unapproved gambling machines have no business being in convenience stores or other locations, particularly those that are available to children and youth.”
Appeal process for revoked licences
Under Ontario regulations, gaming machines that rely on chance must be licensed and operated only in approved venues. AGCO has also reminded operators that promotional offers, including free credits or bonuses, must comply with established guidelines and must not mislead consumers.
Retailers whose licences have been revoked have 15 days to respond. During this period, they may challenge the decision or address the violations. Appeals are reviewed by the independent Licence Appeal Tribunal (LAT), which considers both AGCO’s findings and the retailer’s response. The process may take several weeks or months, with outcomes ranging from full reinstatement to permanent licence revocation.
Broader measures against illegal gambling
AGCO’s enforcement actions are part of a wider initiative to combat illegal gambling in Ontario. Attorney General Doug Downey has expressed support for these efforts, stating that unauthorised gambling must be eliminated. AGCO is working in collaboration with provincial legal teams, law enforcement agencies, and municipal authorities to ensure compliance with gaming regulations.
AGCO is employing advanced digital tools to detect unauthorised gaming machines. This includes inspections of both hardware and software to verify compliance with legal standards. The Ontario Provincial Police (OPP) may become involved in cases where criminal code violations are suspected.
