iGaming Ontario draws ire of operators

**The Buzz** · 7 March 2023, 2:39 pm

According to Gaming News Canada, iGaming Ontario, which was formed in July 2021 as a subsidiary of the Alcohol and Gaming Commission of Ontario, informed operators on 21 February that they would be receiving invoices to pay for fees charged by iGO’s bank for “the due diligence processes it conducts before Operators can begin to make deposits to iGO bank accounts."

From the report:

The notice from iGO, which was obtained by GNC, added that iGO will invoice operators that launched before December 31 an amount “ranging from $25,000 to $150,000 CAD based on iGO’s determination of their expected annualized GGR”.

iGO, in the notice, referred to Section 5.5.2 of the Finance Policy, Chargeback of Fees as the reason for seeking payments from operators. That isn’t sitting well with operators, some of which are members of the Canadian Gaming Association.

“We’ve written iGO on their behalf to express their displeasure,” said CGA president and CEO Paul Burns, adding that some of the association’s members have contacted iGO directly. “The industry needs to understand that there’s cost certainty and regulatory certainty.

“This is a highly competitive market. Having surprises and unplanned costs, no matter how big or small, disrupts business plans. None of the operators heard from the banks, and didn’t know due diligence was being done.”

Amanda Brewer, the Canadian country manager for Kindred Group, expressed her frustration with the banks in an email to GNC.

“Despite repeated attempts by the industry – the Canadian Gaming Assocation, iGaming Ontario, and individual operators – to invite the banks to the table so they could educate themselves on the standards and the stringent AML/KYC regulations that all operators must uphold, they refused, And this is the result,” Brewer wrote. “An industry created by the province to generate jobs, economic development and revenue was ignored. What signal does this send to future industries that want to do business in Ontario?”
We reached out to iGaming Ontario for comment and were told by a spokesperson “iGO cannot comment due to the confidential nature of its operating agreement(s) with Operators”.

Read more here: https://gamingnewscanada.substack.co...m_medium=email