The Alcohol and Gaming Commission of Ontario (AGCO) has taken decisive action against a number of convenience store operators in the Greater Toronto Area (GTA) after discovering unregulated gambling devices on their premises. The move is part of a wider initiative aimed at curbing unlawful gambling activity and reinforcing the integrity of the province’s gaming industry.

This week, AGCO revoked the lottery registrations of several retailers found to be hosting unapproved electronic gaming machines marketed under the brand name Prime Slot. These devices, which have appeared in various locations including convenience stores, were installed despite not meeting the province’s strict regulatory requirements.

Machines pose risks to minors, AGCO says

According to AGCO, the machines were set up in places easily accessible to the public — including minors — raising serious concerns about the exposure of children and youth to gambling. The regulator emphasized that while manufacturers often promote these devices as “games of skill,” the machines primarily function like traditional slot games, relying heavily on chance.

“Unapproved gambling machines have no business being in convenience stores or other locations, particularly those that are available to children and youth,” said Dr. Karin Schnarr, Chief Executive Officer and Registrar at the AGCO.

The commission noted that over the past decade, the presence of unregulated gambling terminals has expanded significantly across North America. In many cases, these machines are intentionally placed in venues where gambling would typically be restricted, exploiting regulatory loopholes by mislabeling the nature of the games.

Enforcement aims to protect consumers and preserve trust

The AGCO’s actions reflect its broader mandate to protect consumers and uphold high standards for game integrity, public safety, and responsible gaming practices. Officials noted that illegal devices not only bypass these standards but also undermine the trust placed in Ontario’s regulated gambling market.

Under Section 10(b) of Ontario’s Gaming Control Act, the Registrar is empowered to deny or revoke a supplier’s registration if there are valid concerns about the individual’s ability to act within the law or uphold the public interest. Section 12 of the Act further allows the Registrar to suspend or revoke registrations based on conduct that would otherwise prevent a renewal under Section 10.

Retailers who receive a Notice of Proposed Order from the AGCO have the option to challenge the decision. Appeals must be submitted within 15 days to the License Appeal Tribunal (LAT), an independent adjudicative body that is part of Tribunals Ontario.

Broader campaign against non-compliant operators

This enforcement action is not isolated. Earlier in the month, AGCO penalized online operator Well Played Media for breaching advertising regulations related to its Casino Days platform. The company was fined C$54,000 after a customer reported losing $8,500 in winnings due to misleading promotional practices. AGCO determined that the promotion encouraged risky behavior and lacked proper disclosure of its terms.

These developments signal AGCO’s sustained commitment to eliminating unregulated gambling operations throughout Ontario. Whether targeting physical storefronts or online platforms, the regulator says it will continue to leverage all available tools to maintain a safe and fair gaming environment.