AGCO in first-of-its-kind ‘Cheat at Play’ prosecution

Ontario’s regulator, the Alcohol and Gaming Commission of Ontario (AGCO) has issued a first-of-its-kind prosecution against a player for alleged cheating in live dealer games online.

The individual, who has not been named by the regulator, save for confirming him as a resident of Richmond Hill, Ontario, was charged with two counts of so-called ‘Cheat at Play’, an offence contrary to section 209 of the Canadian Criminal Code.

Section 209 states that “Every person who, with intent to defraud any person, cheats while playing a game or in holding the stakes for a game or in betting is guilty of an indictable offence and liable to imprisonment for a term of not more than two years or an offence punishable on summary conviction”.

The charges result from alleged illegal activity on two Ontario Lottery & Gaming Corporation (OLG) live blackjack games, powered by Evolution, which is licensed as a supplier to the OLG by AGCO.

According to the regulator, the offences took place in May 2022, when suspected activity was observed in the live dealer game and brought to the attention of AGCO.

All regulated gaming sites – including OLG.CA and private operator sites conducted and managed by iGaming Ontario (iGO) – are required by AGCO to have monitoring systems in place to ensure integrity and fairness of their games.

The measures are designed to identify suspected illegal activity and to protect lawful players.

AGCO is one of the few gambling regulators with a fully integrated police bureau, the Investigation and Enforcement Bureau (IEB), overseen by the Ontario Provincial Police. The IEB oversees investigations made by AGCO into illegal activity.

It provides investigative expertize, intelligence support and effective information sharing to external law enforcement, the AGCO and other regulatory agencies and industry stakeholders, to ensure integrity and public safety within the AGCO-regulated sectors.

AGCO has taken a tough line against operators since the launch of the Ontario market in April, with BetMGM, PointsBet and DraftKings feeling the wrath of the regulator in recent months.

The potential for increased regulatory activity against operators could increase in the coming period, with the regulator’s deadline for previously unregulated operators to license or be prosecuted set to expire today.

The new standard, introduced earlier this month, requires unregulated operators and suppliers and/or those that have agreements with unregulated market operators to end their unregulated activities or jeopardize their prospective Ontario licenses, inclusive of current license applicants.

AGCO has pledged to take “appropriate regulatory action” against any licensee found to have violated this new standard through its dealings with partner entities.

Current license applicants will be required to end unregulated operations before they enter the regulated market.