The Ontario AGCO has opened its registration site for operators and certain suppliers.

• While the tax rate seems set at 20%, it is unclear whether Canada’s proposed Digital Services Tax (DST) of 3% would apply at all, and if so, whether it would be on top of the GGR tax or would be paid by the province out of the GGR tax.
• While AGCO has a legal opinion that shared liquidity from outside the province is legal, it is not clear whether they will allow it, and if so, which jurisdictions will be allowed.
• There is some question as to whether the proposed 12/6 launch date is realistic at this point, or whether the licensed market should launch in early 2022.
• It is not clear when operators who are currently operating in Ontario would have to shut down their current operations prior to the launch of the licensed market.
• There remains some question with respect to the obligations of the provincial government to First Nations, who receive 1.7% of lottery and gaming proceeds.
• It is unclear what the provincial government plans to do about the unlicensed gray market once the licensed market launches.

We will continue to monitor this and seek to keep you apprised.