The regulation of the online gaming industry in Ontario in 2022 marked a massive opening in a very lucrative market that has presented a lot of opportunities for businesses operating in the space of interactive entertainment. It may look like a mad rush with many international companies trying to enter the market at all costs, but beneath this veneer hides an incredibly difficult path.
Launching a business in Ontario is not an easy task for a tech company. It involves making a huge investment into the technologies, processes, and the company itself that will be ready to meet the requirements of the regulator. This point should be considered first by anyone planning to enter this market.
A long and winding road to a licence
The first and most important barrier is that of obtaining a licence. Being a regulated market in Ontario, the Alcohol and Gaming Commission of Ontario (AGCO) undertakes a thorough evaluation of all firms seeking to offer their services. This does not entail only some routine paperwork but rather a complete assessment of everything concerning the firm.
The AGCO undertakes intensive checks about the reputation of the firm and all of its officials and major stockholders. The aim here is to make sure that reputable and reliable firms can provide their services. The entire process of obtaining a licence will probably take many months, or even years. It will require immense effort and resources for proving financial stability and reliability in other regulated markets.
Building a compliant technology stack
On the other hand, it will require the online gaming platform company to configure or develop its technology according to very rigid technical standards. This is no small feat. Every aspect of the online casino software platform has to be configured to work within hundreds of regulations.
It must include rigorous technology standards for geolocation to make sure that the platform can only be used by people physically present in the province of Ontario. There should be KYC and ID validation processes to rule out underage gamers from using the platform. Payments on the site must be made through reliable Canadian payment processors and the technology stack must also have a way of integrating itself with such payment processors. But above all else, each and every game and every single function available on the website must be thoroughly tested and certified by an approved testing laboratory.
A strong commitment to player protection
One of the important aspects of any regulated gaming market nowadays is a comprehensive approach toward the responsible use of products offered by providers and protecting their customers’ interests. As one of the essential mandatory requirements for the obtaining of the licence, companies must offer players various mechanisms for regulating their usage of products provided by them.
Players must have full control of their actions on the gambling website or application. Therefore, they must be able to set deposit, spending, and gaming limits. Moreover, the platform should provide options allowing them to pause their activities temporarily for some reason or even self-exclude themselves from using its services. Another important requirement is training employees to detect potential cases of abusive use of products offered by them and providing necessary contacts to get help from professionals.
A major investment in marketing and operations
However, once the licensing process is completed and the appropriate platform is established, there is still more to be done. Ontario is one of the most competitive markets in Canada, with many other companies also operating under the jurisdiction of a licence in order to reach the same potential clientele. In other words, an enormous amount of marketing efforts needs to be put into establishing a brand image and attracting players.
Apart from marketing activities, the company also needs to develop a full-fledged structure for operating within the territory. Specifically, customer support employees need to be hired and trained for working in accordance with local regulations, while also creating a compliance department whose task will be making sure that all legal requirements are being fulfilled by the company.
A long-term commitment
Becoming part of a highly-regulated market such as the gaming market in Ontario is not an easy task. It is a very involved process which needs a considerable investment upfront, and it also involves making long-term plans for its successful operation. Companies who managed to succeed are those that understood this from the very beginning.
When considering joining the legal gambling market as an investor or a businessperson, one needs to keep in mind the considerable difficulty involved in entering the market. In the past, it was relatively simple to create a small gambling site; however, nowadays, it is much more complicated since the market’s requirements are similar to those of the finance sector.
DISCLAIMER – The information provided in this article is for general informational purposes only. It does not constitute an endorsement or recommendation of any activities. Readers are advised to comply with local laws and act responsibly.
