Problem gambling and operator accountability in Ontario
Guest article by David Phillips, IAGR Trustee and Chief Operating Officer, Alcohol and Gaming Commission of Ontario
Alongside the rapid expansion and evolution of global gaming markets in recent years, there has been an expansion and evolution in thinking as to how we can best mitigate the risk of problem gambling.
Historically, it has been the accepted orthodoxy among both industry participants and government policy makers that risk mitigation measures should be focused predominantly on the provision of tools to “help players help themselves”. Put more simply, the onus has largely been placed on players to prevent their slide into the throes of problem gambling, through “time out” and “bet limit” tools, among others.
In many jurisdictions, this “player accountability” model remains conventional thinking that is reflected both in regulatory rulebooks and operator compliance programs. In many others, however, we are beginning to see a shift to a new way of thinking – one that recognizes the important role that operators play in monitoring, detecting and preventing the risk of problem gambling by their players.
At the Alcohol and Gaming Commission of Ontario (AGCO), we have been proud to emerge as one of the first North American jurisdictions to move in this bold new direction.
Ontario’s approach to problem gambling prevention in iGaming
The launch of Ontario’s open, regulated internet gaming (iGaming) market on April 4, 2022, provided an opportunity to embed this approach from the outset. Ontario was the first province in Canada to establish an open and competitive regulated iGaming market. By incorporating international best practices and modern problem gambling research, a strong regulatory model was established to safeguard players and foster a safer and sustainable online gambling environment.
The AGCO’s overall gambling regulatory framework is centered on the Registrar’s Standards, which include outcome-based requirements for operators to protect players and vulnerable people, including youth and self-excluded patrons. The AGCO’s Registrar’s Standards for Internet Gaming set high standards for player protection and require responsible action from operators at every phase of the player lifecycle.
Responsible advertising standards
This includes responsible advertising standards at the player acquisition stage. Ontario’s Standards require that online gambling ads do not target vulnerable populations, including high-risk players and underage individuals. Most notably, Ontario is the first North American jurisdiction that prohibits public advertising of bonuses and other gambling inducements, including algorithm-based ads. Additionally, the AGCO has prohibited advertising featuring celebrities, role models and influencers that are likely to appeal to minors and significantly restricted the use of athletes in online gambling advertising and marketing.
Standards for responsible game design and player supports
Once actively gambling, AGCO Standards protect players by requiring operators to ensure safer game designs. This includes game design standards first introduced in the United Kingdom that prohibit disguising losses as wins, auto-play, and place restrictions on the speed of play for online slots. Operators must also provide information, tools, and supports to help players gamble responsibly and connect with help when needed. These requirements include responsible gambling messaging, player supports, the ability to set time and financial limits, and the ability to take breaks from gambling through self-exclusion programs.
Operator “know your customer” accountability
In Ontario, the responsibility is not solely placed on the player to prevent the risk of problem gambling. Ontario’s problem gambling risk mitigation model has evolved to place a greater obligation on operators to identify players at risk of harmful play and proactively step in with appropriate supports and intervention.
More specifically, Ontario’s rules expressly require operators to monitor their players’ betting behaviors and intervene appropriately to assist players at risk of harm. Further, the AGCO has a dedicated team in place to ensure operators adhere to these “know your customer” problem gambling standards.
In the iGaming space, operators have significant information about their players and their patterns of play. As a result of this model, regulated iGaming operators in Ontario intervened an average of almost 600 times per month over the last year to reassess players’ risk levels, contact players directly to offer support, or limit or exclude players from gambling to prevent harm.
Through ongoing analysis of regulatory data, the AGCO can identify operators at risk of non-compliance and engage with them to ensure requirements are met. When regulatory enforcement action is necessary, the AGCO has various options available, from education to warnings to monetary penalties.
Moving forward
Ontario has some of the strictest requirements in North America for addressing the risk of problem gambling. Its standards emphasize reducing gambling harms through prevention, awareness, early identification of concerning patterns of play, intervention, and ongoing support for players. These standards are based on current research, international best practices, and insights from Ontario’s responsible gambling community.
As a member of the International Association of Gaming Regulators (IAGR), the AGCO collaborates with other regulators and shares best practices to address the risk of problem gambling. Later this year, the AGCO will host the IAGR annual conference in Toronto, Ontario, providing an opportunity for international regulatory bodies to connect and learn from each other. More details can be found here.