Protecting the Public
A regulatory crackdown on gambling machines by Ontario’s gambling watchdog has triggered a strong response from a games provider. The crackdown saw several convenience stores in the Greater Toronto Area (GTA) lose their lottery seller registrations due to alleged use of unapproved gambling machines.
The Alcohol and Gaming Commission of Ontario (AGCO) announced on 17 July that it had identified multiple locations offering machines under the Prime Slot brand, which the regulatory body classifies as unauthorised electronic gambling devices. As a result, the AGCO revoked the Ontario Lottery and Gaming Corporation (OLG) seller registrations of the affected retailers.
The AGCO argues that the machines in question, which have been appearing with increasing frequency across North America, largely rely on chance and are basically indistinguishable from traditional slot machines. There are also concerns around the presence of the games in locations accessible to children and young people.
Dr. Karin Schnarr, the CEO and Registrar for AGCO, said that unapproved gambling machines have no place in convenience stores or other easily accessible venues. The commission emphasised its commitment to protecting the public, especially minors, from exposure to unregulated gambling activity.
Under Ontario’s Gaming Act, the AGCO has the authority to suspend or revoke a registration if there are reasonable grounds to believe the registration holder will not act in accordance with the law, integrity, honesty, or public interest.
Operator Pushback
However, the supplier of the machines, Prime Skill Games, strongly objected to the regulator’s assessment. In a statement issued on 21 July, the company’s CEO, Matt Zamrozniak, said AGCO’s characterisation was both inaccurate and misleading. He maintained that Prime Slot machines are “entirely skill-based” and not gambling devices. He stresses that player ability, rather than chance, determines the outcome of every session.
Mr Zamrozniak categorically rejects any suggestion that Prime Slot machines fall under the definition of unregulated gambling. He claimed the devices are compliant with the law. The company intends to prove the legality of their machines “through every available means”. This includes through legal documentation, expert analysis, or in front of the courts, if necessary.
AGCO Response
In response, the AGCO noted that any parties disputing the interpretation of the law are entitled to appeal through Ontario’s independent adjudicative Licence Appeal Tribunal.
In an enforcement notice, the AGCO also reminded licensed casinos and charitable gaming operators across Ontario that any promotions advertised as “free play” must truly be free. The commission stated that players should not have to spend or risk their own money to access any bonuses, inducements, or credit labelled as “free”.
The AGCO has been concerned with interests that operate within the grey market after a report this year indicateda significant portion of Ontario online gamblers still use unregulated websites.
