Letter from the Chair

The start of iGaming Ontario’s (iGO) 2022-23 fiscal year will be remembered for the opening of the regulated, safe, and legal internet gaming (igaming) market in Ontario. This market - the first of its kind in Canada - was carefully designed to maximize player choice, prioritize player protections, and generate revenue for the government. One year in, it’s clear that Ontario’s igaming market has resonated with both players and operators, becoming one of the most competitive markets in North America.

In its first year, Ontario’s open igaming market has generated over $35.5 billion in total wagers and $1.26 billion in Total Gaming Revenue from 46 operators serving over 1.6 million customer accounts. At the end of its first year, iGO vastly exceeded projections, delivering nearly $230 million of new revenue to various levels of government, with $145.7 million for the province of Ontario alone.

That said, our measure of success is about much more than just revenue. In just one year, iGO has worked with operators to bring a new level of player protections to the market. These include requiring all operators to have responsible gambling tools in place – such as an RG Check certification – and, unlike in the previous grey market, iGO’s operators comply with all federal anti-money laundering (AML) requirements. On top of this, iGO is working to enable pathways for additional innovative products such as betting exchanges, pari-mutuel horse racing, and charitable sector gaming products – most notably peer-to-peer bingo – to ensure that iGO delivers on its commitment to be a forward-thinking government agency.

Despite the large workload to deliver on its commitments in a short period of time, iGO remains an organization that prioritizes efficiency and respect for the taxpayer. iGO has delivered one of the highest ratios of provincial contribution to full-time equivalent employees (FTE) of any Ontario government agency, earning approximately $2.5 million for every FTE. iGO will continue to prioritize an efficient and effective workforce moving forward.

As iGO’s newly appointed Board Chair I want to take this opportunity to thank and acknowledge everyone who works at and with the agency, from the previous Board Chair Dave Forestell and current and former Board members to iGO staff, government partners at the Alcohol and Gaming Commission of Ontario, operators, and the Ministry of the Attorney General, among others. The work accomplished by iGO and its partners in the 2022-23 fiscal year is nothing short of impressive.

Even with the progress made, there is still much to be done to achieve iGO’s vision of leading the world’s best gaming market. iGO will continue to innovate along with the ever-changing igaming market while also ensuring the voice of the player is front and centre. We will develop and strengthen internal processes and continue to build confidence in the market for players, operators, and the public. We will work with our government partners to address the illegal market, the responsible gambling community to improve player protections, and operators to address outstanding barriers to competition and innovation.

We cannot do this work alone. iGO’s early success is in part because of a collaborative and consultative approach. By working alongside the sector, we can achieve even more.

I look forward to working with my fellow Board members, our Executive Director Martha Otton, and the sector to create an even more vibrant, innovative, and dynamic Ontario igaming market that drives revenue for the province, promotes private sector growth, and puts the player at the core of everything it does.

Heidi Reinhart
Board Chair, iGaming Ontario

Letter from the Executive Director

The 2022-23 fiscal year was a monumental one for iGaming Ontario (iGO). On April 4, 2022, we opened Canada’s first privately operated igaming market. Our first wager was placed mere seconds after midnight, and we haven’t looked back since.

In the 12 months that followed, iGO onboarded 46 operators – more than any jurisdiction in North America - offering over 70 gaming sites to Ontario players. iGO’s operators accepted more than $35.5 billion in total wagers from over 1.6 million active player accounts. Ontario has emerged as a leading igaming market in North America, helping support more than 12,000 jobs and generating over $145.7 million in total financial contributions to the province¹ – significantly higher than the organization’s projection for year one.

The 2022-23 fiscal year has been full of accomplishments to be proud of, but there is more work to be done.

Leading the World’s Best Gaming Market:

Though the 2022-23 fiscal year will be remembered for the opening of the market, iGO also underwent significant change. The organization grew as staff were onboarded to accommodate the rapidly growing market. iGO also completed its first business planning process and, in doing so, set the organization’s vision, mission, and values. That vision - to lead the world’s best gaming market – is no small feat.

To accomplish that vision, we articulated four key values for the organization:

Fun – To facilitate new and exciting entertainment choices for players.

Respect – To promote responsible gaming, value diversity, equity, and inclusion, and treat one another with respect.

Empowerment – To enable innovation and speed to market by reducing red tape and leveraging private sector expertise.

Excellence – To create a culture of constant reflection and continuous improvement.

We harnessed these values throughout the 2022-23 fiscal year to create a roadmap to achieving our vision.

That means creating a lean, highly efficient and effective strategy-driven organization that provides unique value and drives change. An organization that fosters a commercially attractive market, supports and enables operators and their suppliers, and promotes economic development. A government agency that helps protect player’s interests, providing access to fun entertainment options for Ontarians while promoting safer play. All of this done in a safe, regulated environment that provides protection for players and delivers a positive fiscal return for government.

Throughout this annual report, we will detail the actions taken during the 2022-23 fiscal year that embody our values and helped us get closer to achieving our vision, to lead the world’s best gaming market.

Martha Otton
Executive Director, iGaming Ontario

¹ Please see the Management’s Discussion & Analysis section for a full definition and breakdown of the metrics used, including “total financial contributions to the province.” Further explanations on these metrics can be found in iGO’s quarterly market reports available at www.igamingontario.ca.

Description of Activities Over the Year

iGaming Ontario (iGO) is an agency of the Government of Ontario that was established as a subsidiary of the Alcohol and Gaming Commission of Ontario (AGCO). iGO conducts and manages internet gaming in the province when provided through private gaming operators who act as agents on iGO’s behalf. iGO is governed by a Board of Directors. Prior to the creation of iGO, all regulated internet gaming in the province was provided through Ontario Lottery and Gaming Corporation (OLG), a Government Business Enterprise.

iGO enters into operating agreements with operators who meet rigorous standards of game and operator integrity, fairness, player protections and social responsibility, allowing all players to play with confidence. A share of revenues generated by these commercial relationships is returned to the Government of Ontario to support provincial priorities.

The Government of Ontario and the Ministry of the Attorney General officially created iGO on July 6, 2021, and the launch of Ontario’s legal, regulated, and safe igaming market occurred on April 4, 2022. During the first year of market operations, iGO onboarded 46 operators and oversaw over $35.5 billion in total wagers resulting in $1.26 billion in Total Gaming Revenue from over 1.6 million player accounts. To achieve these results, iGO used four pillars to guide its work: growing the economy, breaking down barriers, empowering customers, and building iGO up.

Breaking Down Barriers

The world’s best gaming market is one that is seamless for operators and for players, maximizing efficiency and constantly reducing unnecessary barriers to innovation. For iGO, that work started with ensuring a modern, customer focused service offering. From day one and throughout the 2022-23 fiscal year iGO provided a hands-on, direct approach to prospective operators to help guide them through the process as quickly and efficiently as possible. In just one year, iGO onboarded 46 operators - more than any individual U.S. state has ever onboarded. Over two thirds of those operators transitioned from the unregulated market to the regulated market, thereby helping further iGO’s channelization and player protection goals.

That work continued throughout the year, including ongoing work to assess options for an automated AML system that can expedite reporting and analysis, a self-exclusion registry solution to enable market wide self-exclusion, and a contract oversight system to ensure operators are providing the services iGO expects.

Additionally, iGO is also uniquely positioned as the recipient of a large volume of gaming related data, which poses a unique challenge and advantage for the organization. This data can be used to create a world leading gaming market with leading insights into consumer behaviour. To this end, iGO began and expanded quarterly data reports for operators and the general public, started on a data governance strategy, and set a series of Key Performance Indicators (KPIs) to track performance and seek continual improvement.

Lastly, when it comes to breaking down barriers, it is important to remember iGO is an agency that conducts and manages digital companies providing an online service. That means the complexities for information technology and cyber security are vast. To increase efficiency in this aspect of operations iGO used the 2022-23 fiscal year to complete an internal technology migration, establish a centralized centre for process improvements and automation, and procured a vendor to manage detection of and response to cyber incidents in internal information systems.

Growing the Economy

If iGO is to lead the world’s best gaming market, that means ensuring the gaming market comes to Ontario and thrives here. Given that igaming is a digital product, the direct economic benefits to Ontario may be less visible. To help mitigate this, iGO took several steps throughout the year to help grow the local gaming economy right here in Ontario.

To grow the gaming economy, iGO worked to ensure the newly opened market would be attractive and sustainable. To help achieve that, iGO has established strong governance for operators by developing and standardizing controls for and reporting obligations by operators.

iGO supported a robust market by exploring additional lines of business becoming of a leading gaming market. That meant establishing a framework for the launch of exchange betting, launching peer-to-peer bingo in February of 2023 and supporting Ontario’s charitable sector. We also worked with government partners on growth initiatives such as exploring omnichannel opportunities with the land-based sector and incorporating pari-mutuel horse racing into player offerings, which launched in August of 2023, to ensure a full product complement for players and operators.

The immediate and projected results of this work is already evident. iGO also hired an external firm to complete an economic benefits report that was released early in fiscal year 2023-24. That report measured the current job, revenue, and GDP benefits of Ontario’s igaming market but also projected the potential economic benefits to the country, province, and Ontario municipalities in 5 years’ and 10 years’ time.² These projections can serve as targets for iGO’s work to help grow the gaming industry in Ontario now and into the future.

Empowering Customers

Without satisfied and returning players, iGO cannot lead the world’s best gaming market. Since iGO serves players primarily via its relationships with operators, iGO considers both players and operators its customers. As such, the organization set out to empower both players and operators by providing the supports they needed.

For players, that meant helping to raise awareness of the newly legalized market and its regulated operators by developing an iGO website and public facing communications strategy – including the release of quarterly data reports and a social media presence. iGO also established a policy and process to help resolve disputes between players and operators that complemented the existing AGCO channels for consumer inquiries and complaints. To help operators to compete effectively in the newly regulated market, iGO created an innovative approach to compensate operators for some costs of their promotional programs within defined limits. iGO also began work to incorporate new offerings including peer-to-peer bingo, betting exchanges, progressive jackpots, pari-mutuel horse racing, and omnichannel experiences.

To encourage operators to choose the Ontario market, iGO attended a number of gaming conferences and events to tell iGO’s story and executed on a world-class onboarding process that saw a record number of operators launch in the Ontario market in just one year. iGO continues to work with government partners, including the AGCO, to address the illegal market.

As shown in an IPSOS study jointly commissioned by iGO and the AGCO in March 2023, this work culminated in 85.3% of Ontario players playing on a regulated gaming site in the province, a substantial channelization rate for just one year in.³

Building iGO Up

Of course, iGO cannot lead the world’s best gaming market if the organization itself is not on stable footing. To ensure a lean, efficient, and effective organization iGO focused its efforts in the 2022-23 fiscal year on creating a positive work culture, embodying service excellence, and promoting responsible gambling through internal staff training.

These achievements include the return to a regular cadence of in-person work and work events, including quarterly town-halls and monthly management meetings among other regular in-person meetings. iGO also launched new training initiatives with guest speakers to better educate employees about the newly launched market. iGO established a performance management system for employee evaluation and development.

To embody service excellence, iGO began work to incorporate the voice of the player, enhanced its operator engagement activities with two operator roundtable meetings and engaged with key stakeholders on proposed policy changes.

On responsible gambling, iGO commissioned research on igaming participation and high-risk gambling behaviour, conducted research and consultations on a future centralized self-exclusion policy and program, and designed responsible gambling marketing requirements for operators. The implementation of these programs continues into the 2023-24 fiscal year.

²https://igamingontario.ca/en/deloitte-economic-contribution-ontarios-regulated-igaming-market
³https://www.agco.ca/blog/lottery-and-gaming/apr-2023/one-year-anniversary-ontario-internet-gaming-market-new-study-shows

At Flutter, we are so proud of Ontario’s success in establishing a regulated and competitive igaming market over the past year.

— George Sweny, Vice President, Regulatory Affairs, Flutter International

Operational Performance

During the 2022-2023 fiscal year, iGO designed and released its first public business plan which contains a series of KPIs for the organization. These KPIs are designed to measure how iGO achieves the goals set out in its mandate:

To develop, undertake and organize prescribed online lottery schemes.
To promote responsible gaming with respect to prescribed online lottery schemes.
To conduct and manage prescribed online lottery schemes in accordance with the Criminal Code (Canada) and the Gaming Control Act, 1992 and the regulations made under those Acts.

The KPIs and iGO’s performance are as follows:

KPI

Description

Performance

Breaking Down Barriers

1. Achieve 5% annual growth in channelization rate of players to the legal market, reaching 90% within 5 years

In iGO’s first year of market operations the channelization rate (players using a legal site) for players to the legal market, according to the IPSOS study procured by iGO and the AGCO, was 85.3%. This outperforms iGO’s year one target of 70% and puts iGO in a solid position to deliver on its year five target of 90% channelization. The IPSOS definition of channelization in that study was limited to which sites players use without considering how much money or time players spent on these sites. iGO intends to create a more comprehensive definition of channelization as part of its fiscal 2023-24 market sizing research plan.

Passing/Passed

Growing the Economy

2. Achieve 5% annual average growth in net income before stakeholder expenses between 2023-2024 and 2025-2026

The 2022-23 fiscal year serves as a baseline for this KPI. That baseline totals $96.2 million from which iGO will look to grow by an annual average of 5% between the 2023-24 fiscal year and the 2025-26 fiscal year.

In Progress (Baseline/Target to be Set or Results not yet known)

Empowering Customers

3. Establish baseline of operator evaluation to be used for future KPIs and evaluations

The first operator evaluation framework will be launched in the fourth quarter of fiscal year 2023-24 and will create a baseline for this KPI moving forward. iGO staff and senior leadership regularly engage and consult with operators, iGO has hosted a series of operator roundtables, and initial feedback provided during the market’s one year anniversary indicated positive comments about the organization.

In Progress (Baseline/Target to be Set or Results not yet known)

4. Establish baseline for iGO player awareness of responsible gambling tools with a goal of increasing the awareness of these tools by 5% year-overyear

iGO is in the process of setting targets for player awareness of responsible gambling tools and a baseline measurement will be taken in the third quarter of fiscal year 2023-24. iGO will closely monitor operator compliance for responsible gambling advertisements in the 2023-24 fiscal year which will help the organization achieve this KPI.

In Progress (Baseline/Target to be Set or Results not yet known)

Building iGO Up

5. Reduce iGO Touch Time on data and onboarding processes by 20%

iGO has achieved this KPI with touch time for onboarding processes reducing from 10 weeks to eight weeks. Reductions in Touch Time for data validation in the onboarding process also exceeded the KPI target, with 25% reductions in processing from 20 days to 15 days.

Given that most operators interested in joining the Ontario market did so in 2023-24, iGO expects the number of new operators joining the market to decline in the coming years. As a result, iGO will be removing this KPI from future business plans and annual reports and replace it with a KPI that better measures current operational needs and performance.

Passing/Passed

6. Maintain employee satisfaction target of 80%

iGO has set a base target of 80% of employees recommending iGO as a place to work. iGO completed its first employee engagement survey in fiscal year 2022-23 and obtained an employee engagement score of 84%, thereby exceeding the KPI. iGO will continue to measure engagement as employee tenure and the nature of our work evolves.

Passing/Passed

As Canada’s first province to establish a legal market for private operators, Ontario has distinguished itself while proving the widespread benefits that derive from a consumer friendly and commercially minded framework.

— Benjie Levy, President and COO, theScore and Head of PENN Interactive

Risk Events

Throughout the 2022-23 fiscal year, several risks were identified as barriers to the operational success of the organization. These risks are best categorized into external and internal risks.

External Risks

iGO does not deliver igaming products on its own. Rather, iGO has entered into operating agreements with private gaming operators who operate internet gaming sites on behalf of iGO in accordance with the requirements of those agreements. Therefore, a number of external factors facing these operators, and by extension iGO, such as: operators’ ability to satisfy iGO’s mandated insurance or banking requirements, the COVID-19 pandemic, talent shortages, the Russian invasion of Ukraine, cash flow issues, underperformance, mergers & acquisitions, continued pressure from the illegal market, and cyber security/privacy incidents.

iGO took a number of steps to help mitigate these risks. These included ongoing account management post-onboarding to help operators comply with Operating Agreement obligations, created processes for operator exits, consolidation of gaming sites or other corporate changes, adjusted iGO policies to accommodate for real-world operational concerns, and instituted a disaster recovery and incident management protocol. Each of these mitigation efforts was relied upon during the year to reduce the impact of external risks to operators and to iGO.

In addition, given that iGO is the first agency of its kind in Canada, there are also legal risks that come with the creation and operation of the organization. In the 2022-23 fiscal year, the Mohawk Council of Kahnawa:ke served a notice of application with the Ontario Superior Court against iGO and the Attorney General of Ontario seeking ‘a declaration that the Ontario government does not “conduct and manage” online lottery as required under s. 207(1)(a) of the Criminal Code’ as well as challenging the legislative and constitutional authority which underpins the regulated internet Gaming market scheme in Ontario. The application is expected to be heard in February 2024.

There are also reputational and financial risks that could materialize from a failure to comply with the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. To address these risks, iGO has established a comprehensive Anti-Money Laundering Policy and Program that includes the key elements as prescribed by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). In addition, iGO monitors operator risk and oversees operator compliance with iGO AML requirements. In its first year of market operations, iGO reviewed and filed over 26,000 regulatory reports to FINTRAC.

Gambling is an activity that brings with it inherent risks to players and consequently to iGO as the conductor and manager of igaming. With these risks in mind, iGO established mandatory requirements for operators that complement the AGCO’s regulatory standards. These iGO requirements are: RG Check accreditation, mandatory operator spend on marketing campaigns that focus on responsible gambling messaging, participation in a future centralized-self exclusion registry, and the sharing of anonymized player data for the purposes of research. iGO will also be setting a baseline for player awareness of responsible gambling tools and reporting on this Key Performance Indicator.

Internal Risks

During the 2022-23 fiscal year, iGO continued to operate in a hybrid environment with a combination of remote and in-person work arrangements. This can create internal risks related to employee performance, training, satisfaction, retention, and communication. To help with this hybrid environment, iGO completed a full cloud migration to its own tenant to enable a technological approach that was customizable to iGO’s needs. iGO also instituted in-person events such as town halls, monthly management meetings, and regular touchpoint meetings to ensure in-person communications both between and within departments.

iGO also grew during the 2022-23 fiscal year, bringing on dedicated human resources staff, bolstering the information & technology department, and making additional departmental hires where necessary. This helped to reduce burnout and increase employee satisfaction. That said, iGO ensured all hiring decisions were made under an organization wide effort to prioritize a lean, efficient organization. In the 2022-23 fiscal year, iGO delivered $2.5 million in provincial contribution per full-time equivalent employee – an important measure of our value for taxpayers – while also securing an employee satisfaction rate of 84% for the year, higher than iGO’s target and also among the leaders for any Ontario government agency.

Board Details

In accordance with O. Reg. 722/21 under the Alcohol and Gaming Commission of Ontario Act, 2019, the Minister of the Attorney General appoints a maximum of seven members to the Board of Directors of iGO on the recommendation of the Board of Directors of the AGCO. The Minister is required to designate one member as the chair of the Board and one member as vice-chair and ensure that the majority of the Board is not composed of directors, officers, or employees of the AGCO.

Appointees of the Board of Directors are paid the remuneration fixed by resolution of the Board of Directors of the AGCO subject to the approval of the Minister. The rate of remuneration is on a per diem basis of $200 per day for Board members, $250 per day for the vice-chair, and $350 for the chair.

Appointees are reimbursed for reasonable work-related expenses while engaged in the business of iGO in accordance with the Travel, Meal and Hospitality Expenses Directive and any other Treasury Board and Management Board of Cabinet directives. Board members that served during the 2022-2023 fiscal year and their terms are noted below. All Board members serve part-time roles.

Chair: DAVE FORESTELL
04-Apr-2022 - 26-July-2023 Toronto

Vice-Chair: NEVEEN TAKLA
04-Apr-2022 - 03-Apr-2023 Mississauga

Member: ALAN GERTNER
04-Apr-2022 - 03-Oct-2023 Toronto

Member: MIKE BUNN
13-Jan-2022 - 12-Jan-2024 Ramara

Member: GIOVANNI (JOHN) TRIVIERI
04-Apr-2022 - 03-Apr-2024 St. Catharines

Member: KARIN SCHNARR
04-Apr-2022 - 21-Aug-2023 Kitchener

The Board of Directors of iGO transitioned from an interim Board of Directors to a permanent Board of Directors on April 4, 2022. iGO Chair Dave Forestell resigned as Chair of the Board on July 26, 2023. Heidi Reinhart was appointed as Chair of the iGO Board of Directors on July 27, 2023.

Achievements in Accordance with Mandate

iGO’s mandate is detailed in its governing regulation, O.Reg 722/21 under the Alcohol and Gaming Commission of Ontario Act, 2019. This regulation mandates the organization to develop and establish certain lottery schemes as prescribed, promote responsible gambling, and conduct and manage the prescribed lottery schemes.

This mandate was largely achieved through the launch of the safe, legal, and regulated market on April 4, 2022. For the remainder of the year, iGO executed operating agreements with 46Operators leading to the launch of over 70 gaming websites – more than any other jurisdiction in North America. iGaming Ontario’s operators accepted more than $35.5 billion in total wagers from over 1.6 million active player accounts on behalf of iGO. In just one year, Ontario has emerged as a leading igaming market in North America, helping support more than 12,000 jobs and providing over $96 million in net income and a more than $145 million in total financial contributions to the province when the provincial portion of iGO’s HST payments are included. That amount is significantly higher than the government’s original projection for iGO’s first year.

iGO achieves its mandated responsible gambling accountability through a variety of measures such as mandatory operator accreditation by RG Check, participation in a future centralized self-exclusion program and responsible gambling focused advertisement requirements. In addition to these operator requirements, iGO is commissioning ongoing research into igaming participation and high-risk gambling behaviour in Ontario. To ensure consumers are protected, customer care and dispute resolution policies were developed that set out requirements and processes for players who have concerns or complaints related to products, services, or actions of an operator.

In addition to the mandate laid out in regulation, iGO also received a mandate letter from the Attorney General outlining a variety of priorities including: competitiveness, expenditure management, transparency and accountability, risk management, workforce managements, diversity and inclusion, data collection, digital delivery and customer service, collaboration with the OLG and AGCO on land-based gaming cross-promotion, and promoting further growth and consumer choice in the online gaming market.

To address these priorities iGO pursued the following initiatives:

Competitiveness, Sustainability, and Expenditure Management – iGO launched a record number of gaming operators – more than any jurisdiction in North America – in just one year, leading to $1.26 billion in Total Gaming Revenue and more than $145 million in total financial contributions to the province once HST remittance to the province is accounted for. Ontario’s market is now widely regarded as one of the most competitive in the world.

Transparency and Accountability – iGO complied with applicable government directives and policies including publishing its first annual report and business plans. It co-operated with the Office of the Auditor General of Ontario, including on its inaugural audit with gaming revenues, and will comply with the Auditor’s recommendations for improvement.

Risk Management – iGO conducted numerous risk management exercises, established Board sub-committees including one for Financial, Audit & Risk Management (FARM), and procured an outside vendor to help with the development of a risk management framework and monitoring.

Workforce Management – iGO has prioritized the creation of a lean, engaged, and efficient team.

Diversity and Inclusion – iGO continues to promote an equitable, diverse, accessible, and anti-racist workplace including participating in Ontario Public Service informational sessions and webinars around significant commemorations such as Black History Month and National Day for Truth and Reconciliation.

Data Collection – iGO is acting on its inaugural data strategy and using the gaming data under its control to publish publicly available reports as well as offer unique insights to operators and the public about player behaviour. This data collection also applies to responsible gambling statistics which will be used to inform future work in that area.

Digital Delivery and Customer Service – iGO embraced a hybrid workforce, including working outside of regular hours to accommodate international operators, to ensure seamless customer service throughout the COVID-19 pandemic. iGO has also been using the services of the AGCO contact centre to respond to consumer complaints and queries in a cost-effective and timely manner.

Collaborating with the OLG and AGCO on Land-Based Gaming Cross-Promotion – In the 2022-23 fiscal year iGO worked with its government gaming partners and land-based casinos towards allowing a forthcoming omnichannel experience that will enable joint loyalty programs through sharing of promotional data between loyalty programs in land-based gaming and online gaming sites owned by the same operators. iGO worked with the AGCO and other government partners to allow operators of Ontario’s land-based charitable gaming centres to offer online peer-to-peer pay-to-play bingo where a portion of the operator’s share of revenue is provided to charities.

Increase Growth and Consumer Choice – iGO onboarded 46 operators throughout the year to create one of the most competitive online gaming markets in the world, offering Ontario consumers more choice than ever before. iGO also ensured a flexible gaming catalogue that allows sports betting, casino play, and peer-to-peer poker. Throughout the year, iGO worked with operators to adjust internal policies and requirements to enable the launch of peer-to-peer bingo, betting exchanges, and pari-mutuel horse racing offerings. Each of these product expansions will help channelize players away from the illegal market and, directly or indirectly, increase revenue while maximizing consumer choice.

It has been great collaborating with iGaming Ontario, who has been instrumental in making this launch a success for all stakeholders.

— Bruce Caughill, Managing Director, Canada, Rush Street Interactive

Financial Highlights

In iGO’s first year of market operation, Ontarians wagered nearly $35.5 billion and generated $1.26 billion in Total Gaming Revenue. Total Gaming Revenue was driven by three main product lines: casino play, betting (including sports, novelty, e-sports, and proposition bets), and peer-to-peer poker. Peer-to-peer bingo products launched late in the 2022-23 fiscal year and made incremental amounts while betting exchange products did not launch during the 2023-2024 fiscal year and thus are not included in these figures. In total, $855 million in revenue was generated from online casino play, $368 million from betting, and $37 million from peer-to-peer poker.

Though the numbers are impressive, iGO has yet to have a full year of operations with a full complement of operators. When the market launched on April 4, 2022, iGO had 12 operators. By the end of the first quarter, that number had grown to 18 operators and, by the end of the fiscal year, that number had grown further to 46 operators. The cadence of onboarding, which peaked surrounding the October 31, 2022, grey market transition deadline put in place by the AGCO, partially explains the rate of wagers and Total Gaming Revenue seen in the chart below. As more operators went live and made customers aware of their offerings through advertising, both wagers and revenue increased (as seen below) culminating in a total of roughly $35.5 billion in total wagers and $1.26 billion in Total Gaming Revenue in fiscal year 2022-23.⁴

$35.5 B Total Wagers. $1.26 B Total Gaming Revenue.

1.6M Active Player Accounts. $70 Average Player Spend (per active player account).

FY 22-23 Gross Gaming Revenue. Q1: $162M, Q2: $265M, Q3: $463M, Q4: $526M

FY 22-23 Total Wagers. Q1: $4.1B, Q2: $6.0B, Q3: $11.5B, Q4: $13.9B.

⁴ Numbers may not add due to rounding. These figures are in line with iGO’s approved audited financial statements and may differ from previously reported unaudited figures due to the use of eligible deductions and timing issues related to settlement of wagers.

The timing and cadence of onboarding also explains some customer behaviour. For example, the launch of operators that feature peer-to-peer poker offerings were staggered throughout the year, partially explaining lower totals in that segment. Similarly, the sports calendar generally slows throughout the summer months with few, if any, National Basketball Association, National Football League, English Premier League, or National Hockey League contests throughout those months. Throughout the first year, basketball proved to be the most popular sport in terms of total wagers, followed by soccer, football, hockey, and baseball. Four of those sports take summer breaks which, when added to the cadence of onboarding, explains the increase in wagering and revenue in the second half of the fiscal year. Given 2023-2024 will begin with considerably more operators than the beginning of 2022-2023, iGO expects significant revenue growth in 2023-2024.

Casino play continues to be a main driver of wagers and revenue. In 2022-2023, 48% of all casino wagers were on slots, with 32% on live table games, and another 19% on computer-based table games.

The 2022-2023 fiscal year saw wagers placed by more than 1.6 million active player accounts. According to a joint study released by the AGCO and iGO, 85.3% of Ontario players reported playing on a regulated site between January and March of 2023. This channelization rate is in large part due to the highly competitive and open nature of the Ontario market leading to a large number of operators, dynamic sports betting products, and over 5,000 casino games being available to Ontario players for the first time in a safe, regulated, and legal fashion.

In total, these numbers place Ontario as one of the most competitive igaming jurisdiction in North America. The wagering and revenue statistics also make Ontario a top 5 igaming jurisdiction in North America even though iGO has yet to undergo a full year of market operations with a full complement of operators. It should be noted that iGO’s numbers do not include wagering or revenue statistics from the OLG’s igaming business and, when added, further increase the size of the Ontario igaming market.

As one of the first companies to join Ontario’s regulated igaming market, we welcome that our ongoing relationship with iGaming Ontario has allowed us to offer a quality product for our customers in a safe and responsible environment. We look forward to working together into the future to continue to raise standards in the regulated market.

— Bet365

Management’s Discussion and Analysis

For the year ended March 31, 2023

The following Management’s Discussion and Analysis (MD&A) is a commentary on the consolidated financial position and financial performance of iGaming Ontario (iGO or the Corporation) and should be read together with the audited Financial Statements of iGO for the fiscal year ended March 31, 2023.

The Consolidated Financial Statements have been prepared in accordance with International Financial Reporting Standards (IFRS). Amounts are presented in Canadian dollars and are rounded to the nearest thousands. Certain comparative figures in this MD&A have been reclassified, where necessary, to conform to the current year’s presentation. iGO adopted IFRS as its accounting framework effective April 1, 2022, where the previous year was reported under Canadian Public Sector Accounting Standards. There are no restatements required due to the change in accounting framework in the current fiscal year.

These financial statements represent iGO’s first year of revenue generation, with the launch of the new regulated internet igaming market on April 4, 2022.

Please note that financial figures have been rounded or truncated, which means that certain charts or tables may not add or cross-tabulate. The Board of Directors approved the contents of this MD&A on Sept 29, 2023.

Forward-Looking Statements

This MD&A contains forward-looking statements about expected or potential future business and financial performance. For iGO, forward-looking statements include, but are not limited to: statements about possible future revenue and other statements about future events or conditions. Forward-looking statements are not guaranteeing future performance and involve risks and uncertainties that could cause actual results to differ materially from those projected. These uncertainties include but are not limited to: the economic environment, customer demand, changes in government policy, the outcome of litigations, the competitive environment, the timing and number of new Gaming Operators, and changes in regulation.

Although such statements are based on management’s current estimates, expectations and currently available competitive, financial and economic data, forward-looking statements are inherently uncertain. The reader is cautioned that a variety of factors could cause business conditions and results to differ materially from what is contained herein.

Non-IFRS measures

In the following analysis, iGO uses some key performance indicators and non-IFRS measures which management believes are useful in assessing the Corporation’s performance. Readers are cautioned that these measures may not have standardized meanings under IFRS and therefore, may not be comparable to similar terms used by other companies.

Wagers: includes the aggregate amount of all cash and cash equivalents collected from players for the right to participate in the eligible igames. Wagers includes rake fees, tournament fees and other fees.

Winnings: means the amount of money payable to a player as a result of the consequences of the outcome of the eligible igames.

Total iGO Contribution to the Province: Represents iGO’s Net Income plus a portion of the GST/HST that iGO pays to the Federal Government, that is recovered to the Province of Ontario. iGO estimates approximately 37% of the GST/HST it pays to the Federal Government is recovered by the Province.

iGO’s revenues are driven through the multitude of independent, national and international gaming operators. iGO conducts and manages internet gaming with these gaming operators via a commercial contractual relationship, (an operating agreement, the ‘Agreement’), where the operator is accountable to fund and deliver all gaming operations required to generate igaming revenues in accordance with the terms of the Agreement. iGO makes operator payments to each gaming operator in accordance with the terms of the Agreement. Net Gaming Revenue, being Gaming Revenue less Operator Payments was $239.9 million for the year.

Financial Summary: (in Millions)

Fiscal 2022-23

For the Period July 6, 2021 to March 31, 2022

REVENUE

Gaming Revenue

1,259.9

n/a

Less Operator Payments

1,020.0

n/a

Net Gaming Revenue

239.9

n/a

Other Income

4.9

n/a

EXPENSES

GST/HST

133.7

1.2

Salaries & Benefits

8.8

3.3

General Operating, Administration & Other

4.7

1.7

Information Technology & Infrastructure Services

1.1

2.1

Marketing & Promotion

0.2

0.3

Depreciation¹

0.0

Net Income

96.2

(8.7)

Provincial Portion of GST/HST Refunded to Province

49.5

0.4

Total iGO Contribution to Province

145.7

(8.3)

¹ Depreciation expense of $29,000 and $16,000 was incurred for fiscal 2022-23 and 2021-22 respectively.

The prior fiscal year reflects iGO’s first year of operations, being from the July 6, 2021, the date of establishment, until the fiscal year end of March 31, 2022. As noted above, the igaming market in Ontario launched on April 4, 2022, the current fiscal year. Accordingly, the prior fiscal year only reflects expenditures as iGO carried out various pre-market launch readiness activities such as ensuring the required resources, processes, policies and procedures, and commercial contracts were in place.

In its first year of revenue operations iGO generated strong financial returns to the province, $96.2 million in net income for the year ending March 31, 2023, and almost $146 million of contributions generated for the Province, when considering the amount of GST/HST that is recovered by the Province.

For additional clarity, GST/HST is one of the largest expenditures incurred by iGO, primarily attributable to the incurrence of Operator Payments. Operator payments attract a 13% GST/HST obligation for iGO, which is remitted to the Canada Revenue Agency and total HST was $133.7 million in 2022-2023.

Salaries and Benefits expenditures increased by $5.5 million, to $8.8 million, primarily due to less reliance on shared AGCO resources, incremental hires to support the market launch, and the impact of a full year of operations (the prior fiscal reflected nine months of operations only). The market response, and the number of operators seeking to join the new market in the first year far surpassed iGO’s original expectations. As a result, iGO needed to respond to ensure the appropriate number of resources were in place to manage the demand and required workloads to enable a well controlled and successful launch of each new gaming operator. iGO reduced the utilization of AGCO shared resources during the fiscal year as iGO established its required independent functions, such as IT support functions. The use of AGCO shared FTE resources declined to approximately 10 FTEs in fiscal 2022-23 versus 13 FTEs in fiscal 2021-22.

General Operating, Administration and Other increased year over year in part due to a full year of operations, combined with higher banking fees than in the previous year.

Financial Statements of
iGaming Ontario
Year ended March 31, 2023 and for the period from July 6, 2021 (date of incorporation) to March 31, 2022

iGaming Ontario

Management Statement of Responsibility for Financial Reporting

Responsibility for Financial Reporting:

The accompanying Financial Statements of iGaming Ontario (iGO) have been prepared in accordance with International Financial Reporting Standards (IFRS). The preparation of Financial Statements in conformity with IFRS requires management to make judgments, estimations, and assumptions (that affect the application of accounting policies and reported amounts of assets, liabilities, revenues and expenses). Estimations and underlying assumptions are reviewed on an ongoing basis.

Management maintains a system of internal controls designed to provide reasonable assurance that assets are safeguarded, and that reliable financial information is available on a timely basis. The system includes formal policies and procedures and an organizational structure that provides for appropriate delegation of authority and segregation of responsibilities.

The Board of Directors, through the Finance, Audit and Risk Management Committee, is responsible for ensuring management fulfills its responsibilities for financial reporting and internal controls.

The Financial Statements have been audited by the Office of the Auditor General of Ontario. The Auditor’s responsibility is to express an opinion on whether the financial statements are fairly represented in accordance with International Financial Standards. The Independent Auditor’s Report outlines the scope of the Auditor’s examination and opinion.

Martha Otton
Executive Director
August 17, 2023

Jerry Zhang
Director, Strategic Business Services
August 17, 2023

INDEPENDENT AUDITOR’S REPORT

To iGaming Ontario

Opinion

I have audited the financial statements of iGaming Ontario, which comprise the statements of financial position as at March 31, 2023 and 2022, and the statements of income and comprehensive income, changes in equity (deficit) and cash flows for the year ended March 31, 2023 and for the period from July 6, 2021 to March 31, 2022, and notes to the financial statements, including a summary of significant accounting policies.

In my opinion, the accompanying financial statements present fairly, in all material respects, the financial position of iGaming Ontario as at March 31, 2023 and 2022, and its financial performance and its cash flows for the year ended March 31, 2023 and for the period from July 6, 2021 to March 31, 2022 in accordance with International Financial Reporting Standards (IFRSs).

Basis for Opinion

I conducted my audits in accordance with Canadian generally accepted auditing standards. My responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of my report. I am independent of iGaming Ontario in accordance with the ethical requirements that are relevant to my audits of the financial statements in Canada, and I have fulfilled my other ethical responsibilities in accordance with these requirements. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.

Emphasis of Matter

I draw attention to Note 17 of the financial statements, which describes the notice of application between Mohawk Council of Kahnawà:ke and iGaming Ontario and the Attorney General of Ontario. This notice of application challenges the legality of Ontario’s internet gaming framework. My opinion is not modified in respect of this matter.

Responsibilities of Management and Those Charged with Governance for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with IFRSs, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing iGaming Ontario’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless iGaming Ontario either intends to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing iGaming Ontario’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Financial Statements

My objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with Canadian generally accepted auditing standards, I exercise professional judgment and maintain professional skepticism throughout the audit. I also:

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of iGaming Ontario’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting and based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on iGaming Ontario’s ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify my opinion. My conclusions are based on the audit evidence obtained up to the date of my auditor’s report. However, future events or conditions may cause iGaming Ontario to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

The audit of these financial statements is a group audit engagement. As such, I also obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the financial statements. I am responsible for the direction, supervision and performance of the group audit and I remain solely responsible for my audit opinion.

I communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audits.

Bonnie Lysyk, MBA, FCPA, FCA, LPA
Auditor General
Toronto, Ontario
August 17, 2023

Box 105, 15th Floor
20 Dundas Street West
Toronto, Ontario
M5G 2C2
416-327-2381
fax 416-326-3812

B.P. 105, 15e étage
20, rue Dundas ouest
Toronto (Ontario)
M5G 2C2
416-327-2381
télécopieur 416-326-3812
www.auditor.on.ca

iGaming Ontario

Statement of Financial Position

As at March 31, 2023 and 2022
(In thousands of dollars)

Note

2023

2022

Assets

Current Assets
Cash

130,017

Restricted cash

9,802

Accounts receivable

35,749

Prepaid assets

121

Total current assets

175,689

Non-current assets
Property and equipment

116

Total assets

175,805

Liabilities and Equity

Current liabilities
Accounts payable and accrued liabilities

42,353

161

Due to Alcohol and Gaming Commission of Ontario

2,703

7,884

Due to Government of Canada

18,162

621

Due to Gaming Operators

9,802

Derivative liabilities

15,130

Total current liabilities

88,150

8,666

Non-current liabilities
Non-pension employee benefits

178

127

Total liabilities

88,328

8,793

Equity (deficit)
Retained earnings (deficit)

87,477

(8,724)

Total equity (deficit)

87,477

(8,724)

Total liabilities and equity

175,805

Contingencies (Note 17)
Subsequent events (Note 18)

See accompanying notes to financial statements.

On behalf of the Board:

Chair

Director

iGaming Ontario

Statement of Income and Comprehensive Income

Year ended March 31, 2023 and for the period from
July 6, 2021 (date of incorporation) to March 31, 2022
(In thousands of dollars)

Note

2023

Period from
July 6, 2021 to
March 21, 2022

Gaming revenue

3(a), 9

1,259,865

Operator payments

3(b)

(1,019,996)

Net gaming revenue

239,869

Other income

3(m)

4,894

Expenses
GST/HST expense

10, 13

133,721

1,241

Salaries and benefits

10, 11

8,768

3,328

General operating, administration and other

3(l), 10

4,719

1,739

Information technology and infrastructure services

1,104

2,054

Marketing and promotion

221

346

Depreciation

148,562

8,724

Net income (loss) and comprehensive income (loss)

96,201

(8,724)

See accompanying notes to financial statements.

iGaming Ontario

Statement of Changes in Equity (Deficit)

Year ended March 31, 2023 and for the period from
July 6, 2021 (date of incorporation) to March 31, 2022
(In thousands of dollars)

2023

2022

Equity (deficit) at beginning of year

(8,724)

Net income (loss) for the period

96,201

(8,724)

Equity (deficit) at end of year

87,477

(8,724)

The accompanying notes are an integral part of these financial statements.

iGaming Ontario

Statement of Cash Flows

Year ended March 31, 2023 and for the period from
July 6, 2021 (date of incorporation) to March 31, 2022
(In thousands of dollars)

2023

Period from
July 6, 2021 to
March 31, 2022

Operating activities:
Net income (loss) for the year

96,201

(8,724)

Adjustments for:
Depreciation

Interest income

(2)

Changes in working capital:
Increase in accounts receivables

(35,749)

Increase in prepaid assets

(121)

Increase (decrease) in due to Alcohol and Gaming Commission of Ontario

(5,181)

7,884

Increase in due to Government of Canada

17,541

621

Increase in derivative liabilities

15,130

Increase in accounts payables and accrued liabilities

42,192

161

Increase in due to Gaming Operators

9,802

Increase in non-pension employee benefits

127

Cash provided by operating activities

139,893

Investing activities:
Additions to property and equipment

(79)

(82)

Interest received

Cash used in investing activities

(77)

(82)

Net increase in cash and restricted cash during the year

139,816

Cash and restricted cash, beginning of year

Cash and restricted cash, end of year

139,819

Cash

130,017

Restricted cash

9,802

Cash and restricted cash, end of year

139,819

iGaming Ontario

Notes to Financial Statements

Year ended March 31, 2023 and for the period from
July 6, 2021 (date of incorporation) to March 31, 2022
(In thousands of dollars)

Reporting entity

iGaming Ontario (iGO or the Corporation) was established without share capital on July 6, 2021 as a subsidiary corporation of the Alcohol and Gaming Commission of Ontario (AGCO) pursuant to Ontario Regulation 517/21 under the Alcohol, Cannabis and Gaming Regulation and Public Protection Act, 1996 and continued under Ontario Regulation 722/21 under the Alcohol and Gaming Commission of Ontario Act, 2019 (the "Regulation").

The Corporation is responsible to develop, undertake and organize prescribed online gaming schemes, to promote responsible gambling on those schemes, and to conduct and manage the schemes in accordance with the Criminal Code (Canada) and the Gaming Control Act, 1992. iGO makes payments out of the revenue that it receives from all prescribed online gaming schemes and that it generates from its conduct and management of those schemes in priority established in the Regulation. iGO transfers most of its earnings to the Province’s Consolidated Revenue Fund in the form of a dividend. Refer to subsequent event (Note 18).

The AGCO is responsible for overseeing iGaming Ontario’s conduct and management of Internet gaming, and also recommendations regarding appointments to the board of iGaming Ontario to the Attorney General.

The Attorney General is responsible for appointing board members to iGaming Ontario based on these recommendations. The Minister of Finance determines the timing of any cash remittances from iGaming Ontario to the Province of Ontario. As a result, the financial results of iGaming Ontario are not consolidated into the AGCO’s financial statements as iGaming Ontario is controlled by the Province of Ontario and is consolidated into the Province’s financial statements.

Pursuant to the Income Tax Act, iGO is exempt from income taxes.

The Corporation’s head office and corporate office, respectively, are located at: 90 Sheppard Avenue East, North York, Ontario, Canada, M2N 0A4.

On April 4, 2022, iGO launched the new market for online gaming in Ontario. On this date, private gaming companies (“Gaming Operators”) that executed an operating agreement (“Operating Agreement”) with iGO began to offer their games to players in Ontario. For the period July 6, 2021 to March 31, 2022, iGO earned no gaming revenue since the market was launched subsequent to March 31, 2022.

Under the Operating Agreements, iGO appoints Gaming Operators as its agents solely to operate websites that offer, on behalf of iGO, online games to players in the Province of Ontario. The Corporation conducts and manages the regulated Internet gaming market in Ontario, while the Gaming Operators provide their services, in accordance with the terms of the Operating Agreement.

The Corporation does not control these Gaming Operators and therefore, does not consolidate the financial position or results of operations of these Gaming Operators.

As at March 31, 2023, iGO has entered into Operating Agreements with 46 Gaming Operators.

These financial statements were authorized for issue by the Board of Directors of iGO on August 17, 2023.
Basis of presentation
1. Statement of compliance:
  
  These financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB).
  
  These financial statements are the first financial statements prepared by the Corporation under IFRS and, as such, are prepared in accordance with the provisions of IFRS 1 – First Time Adoption of International Financial Reporting Standards. Refer to Note 19 for information on how the Corporation adopted IFRS.
2. Basis of measurement:
  
  These financial statements have been prepared on the historical cost basis except for the derivative liabilities measured at fair value through profit and loss (Note 3(f)).
3. Functional and presentation currency:
  
  These financial statements are presented in Canadian dollars. The Canadian dollar is the Corporation’s functional currency and the currency of the primary economic environment in which the Corporation operates.
4. Use of estimates and judgments:
  
  The preparation of these financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and reported amounts of assets, liabilities, revenues and expenses. Actual results may differ from these estimates.
  
  Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future years affected.
  
  Information about critical judgments in applying accounting policies that have the most significant effect on the amounts recognized in the financial statements are included in the following notes:
  - Revenue (Note 3 (a))
  - Due to the Government of Canada (Note 13)
  - Contingencies (Note 17)
  An area of significant estimation and uncertainty that may have a significant effect on the amounts recognized in the financial statements, and could result in a material adjustment within the next fiscal year is the fair value measurement of derivative liabilities as of March 31, 2023, which is discussed in Note 3(f).
Significant accounting policies
1. Gaming revenue:
  
  The Corporation earns revenue from offering online games through a network of third-party Gaming Operators. These services, performed under Operating Agreements, are accounted for as a single performance obligation composed of a series of distinct services that are substantially the same and have the same pattern of transfer (i.e. distinct days of service). Gaming revenue generated from online games is recorded in the same period the games are played. Gaming revenue is measured at the fair value of the consideration received or receivable.
  
  The Corporation’s gaming revenue includes the gross amounts, or wagers collected by Gaming Operators from players less winnings paid to players and less eligible deductions. Wagers include rake fees, tournament fees and other fees. Eligible deductions are cashable payments to players derived from the wagering of promotional play funds such as free bets or bonuses dependant on conditions and up to a limit specified in Operating Agreements.
  
  The Corporation has used significant judgment in determining that it should recognize revenue on a gross basis as it is the principal for the online lottery schemes. To determine that the Corporation is the principal, it considers whether it obtains control of the services before these are transferred to the players. In making this evaluation, several factors are considered, most notably whether the Corporation has primary responsibility for fulfilment to the players based on the terms of the Operating Agreements.
  
  The Corporation disaggregates revenue into the following products and is shown in Note 9:
  - Casino games includes slots, live and computer-based table games, and peer-to-peer bingo.
  - Betting includes betting on sports, esports as well as proposition and novelty bets.
  - Peer-to-Peer Poker includes cash games and tournaments where players play against each other.
  Significant judgment is needed to determine whether gaming bets and online casino gaming transactions are within the scope of IFRS 9 – Financial Instruments (“IFRS 9”) or IFRS 15 – Revenue from Contracts with Customers (“IFRS 15”).
  
  Transactions where an Operator takes a position against a player and the revenue varies depending on the likelihood of the occurrence of a specified event meet definition of derivatives and are accounted for in accordance with IFRS 9. In such transactions, revenue is recorded as the gain or loss on betting transactions settled during the period plus fair value adjustments on open bets under IFRS 9. The Corporation accounts for Betting and Casino transactions in accordance with IFRS 9.
  
  Transactions where Gaming Operators are only administering games without taking any position are accounted for in accordance with IFRS 15. The Corporation accounts for Peer-to-Peer Poker transactions in accordance with IFRS 15.
  
  Gaming revenue includes the Corporation’s net gains or net losses on derivative financial liabilities measured at fair value through profit and loss as discussed in Note 14.
2. Operator payments:
  
  In accordance with the terms of each Operating Agreement, Gaming Operators accept, on behalf of and as agent for the Corporation, bets on eligible online games offered on Gaming Operators’ websites. Gaming Operators are also required to pay, on behalf of and as agent for the Corporation, all winnings to players. Gaming Operators remit all wagers less winnings and eligible deductions to iGO. The Corporation remits 80% of the gaming revenue deposited back to each Gaming Operator as variable compensation for the online services they provide to players as iGO’s agent, in accordance with the terms of the Operating Agreement and any related policies. The Corporation reflects the 80% Gaming Operator revenue share payment as a cost of earning gaming revenues.
  
  The cost is recorded in the Statement of Income and Comprehensive Income simultaneously as the gaming revenue is earned.
3. Cash:
  
  Cash is comprised of cash held with financial institutions and excludes restricted cash related to performance security received from Gaming Operators under Operating Agreements.
4. Restricted cash:
  
  Restricted cash, represents the amounts of cash deposited into a segregated bank account from certain Gaming Operators to satisfy performance security requirements under their Operating Agreement (Note 5). These funds are held in accordance with the terms of the Operating Agreement and a separate agreement signed between iGO and the respective Gaming Operator.
5. Property and equipment:
  1. Recognition and measurement:
    
    Property and equipment are measured at cost less accumulated depreciation and accumulated impairment losses.
    
    Cost includes an expenditure that is directly attributable to the acquisition of the asset. When parts of an item of property and equipment have different useful lives, they are accounted for as separate items (major components) of property and equipment.
    
    Gains and losses on disposal of an item of property and equipment are determined by comparing the proceeds from disposal with the carrying amount of property, plant and equipment and are recognized on a net basis in the Statement of Income and Comprehensive Income.
  2. Depreciation:
    
    Depreciation is calculated over the depreciable amount, which is the cost of an asset less its residual value.
    
    Depreciation is recognized in the Statement of Income and Comprehensive Income on a straight-line basis over the estimated useful life of each component of an item of property and equipment, since this most closely reflects the expected pattern of consumption of the future economic benefits embodied in the asset.
    - Computer equipment
      
      3 years
    - Video equipment
      
      5 years
6. Financial instruments:
  1. Financial assets:
    
    Initial Recognition and Measurement:
    
    The Corporation recognizes a financial asset when it becomes party to the contractual provisions of the instrument. Financial assets are measured initially at their fair value plus, in the case of financial assets not subsequently measured at fair value through profit or loss, transaction costs that are directly attributable to their acquisition. Transaction costs attributable to the acquisition of financial assets subsequently measured at fair value through profit or loss or through other comprehensive income are expensed in the Statement of Income and Comprehensive Income when incurred.
    
    Classification and subsequent measurement:
    
    On initial recognition, financial assets are classified as, and subsequently measured at, amortized cost, fair value through other comprehensive income or fair value through profit or loss. The Corporation determines the classification of its financial assets, together with any embedded derivatives, based on the business model for managing the financial assets and their contractual cash flow characteristics.
    
    Financial assets are classified as follows:
    - Amortized cost – Assets that are held for collection of contractual cash flows where those cash flows are solely payments of principal and interest are measured at amortized cost. Interest revenue is calculated using the effective interest method and gains or losses arising from impairment, and derecognition are recognized in the Statement of Income and Comprehensive Income. Financial assets measured at amortized cost comprise of cash, restricted cash, and accounts receivable.
    - Fair value through other comprehensive income – Assets that are held for collection of contractual cash flows and for selling the financial assets, and for which the contractual cash flows are solely payments of principal and interest, are measured at fair value through other comprehensive income. All changes in the carrying amount of the financial assets are recognized in other comprehensive income. Upon derecognition, the cumulative gain or loss previously recognized in other comprehensive income is reclassified to the Statement of Income and Comprehensive Income. The Corporation does not hold any financial assets measured at fair value through other comprehensive income.
    - Mandatorily or designated at fair value through profit or loss – Assets that do not meet the criteria to be measured at amortized cost, or fair value through other comprehensive income, are measured at fair value through profit or loss. All interest income and changes in the financial assets’ carrying amount are recognized in the Statement of Income and Comprehensive Income. The Corporation does not hold any financial assets mandatorily or designated measured at fair value through profit or loss.
    Derecognition of financial assets:
    
    The Corporation derecognizes a financial asset when its contractual rights to the cash flows from the financial asset expire.
  2. Financial liabilities:
    
    Recognition and initial measurement:
    
    The Corporation recognizes a financial liability when it becomes party to the contractual provisions of the instrument. At initial recognition, the Corporation measures financial liabilities at their fair value plus transaction costs that are directly attributable to their issuance, with the exception of financial liabilities subsequently measured at fair value through profit or loss ("FVTPL”) for which transaction costs are immediately recorded in the Statement of Income and Comprehensive Income.
    
    Classification and subsequent measurement:
    
    Subsequent to initial recognition, all financial liabilities are measured at amortized cost using the effective interest rate method or FVTPL.
    
    The Corporation’s non-derivative financial liabilities measured at amortized cost are comprised of accounts payables and accrued liabilities, due to AGCO, due to Gaming Operators, and due to Government of Canada. Subsequent to initial recognition, these financial liabilities are measured at amortized cost using the effective interest method, if applicable. Interest expense is recognized in the Statement of Income and Comprehensive Income.
    
    The Corporation’s derivative financial liabilities measured at FVTPL consist of unsettled betting transactions as at the financial reporting date. Subsequent to initial recognition, these financial liabilities are measured at fair value. Net gains or losses are recognized in gaming revenue on the Statement of Income and Comprehensive Income.
    
    Derecognition of financial liabilities:
    
    The Corporation derecognizes a financial liability only when its contractual obligations are discharged, cancelled or expire.
  3. Fair values measurement:
    
    The Corporation, when applicable, provides disclosure of the three-level hierarchy that reflects the significance of the inputs used in making the fair value measurement. The three levels of fair value hierarchy based on the reliability of inputs are as follows:
    - Level 1 - inputs are quoted prices in active markets for identical assets and liabilities.
    - Level 2 - inputs are based on observable market data, either directly or indirectly other than quoted prices; and includes the derivative liability.
    - Level 3 - inputs are not based on observable market data.
7. Offsetting:
  
  Financial assets and liabilities are offset and the net amount presented in the Statement of Financial Position only when the Corporation has a legally enforceable right to offset the amounts and intends either to settle on a net basis or to realize the asset and settle the liability simultaneously.
8. Impairment:
  1. Financial assets:
    
    At each reporting date, the Corporation assesses whether financial assets carried at amortized cost are credit impaired. The Corporation applies the simplified approach for accounts receivables. Using the simplified approach, the Corporation records a loss allowance equal to the expected credit losses (“ECL”) resulting from all possible default events over the assets’ contractual lifetime.
    
    The Corporation uses historic actual credit losses as the basis for estimating ECLs and uniformly applies this estimate to its gross balance (net of balances already fully impaired and written off) at each reporting date. The Corporation believes this amount to best reflect the ECL.
    
    Loss allowances on financial assets measured at amortized cost are deducted from the gross carrying amount of the asset, and the related impairment loss is recorded in the Statement of Income and Comprehensive Income. The gross carrying amount of a financial asset is written off when the Corporation has no reasonable expectation of recovering a financial asset in its entirety or a portion thereof.
9. Provisions:
  
  Provisions are liabilities of uncertain timing and amount. A provision is recognized if, as a result of a past event, the Corporation has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation.
  
  Provisions are determined by discounting the expected future cash flows at a rate that reflects current market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount would be recognized on the Statement of Income and Comprehensive Income. Provisions are reviewed at each reporting date and adjusted to reflect current best estimates.
10. Employee benefits:
  1. Defined benefit pension plan:
    
    A defined benefit plan is a post-employment benefit plan that requires entities to record their net obligation in respect of the plan and is not a defined contribution plan. The Corporation provides defined benefit pension plan through the Public Service Pension Fund (PSPF). The Corporation does not have a net obligation in respect of the defined benefit pension plan as the plan is a sole-sponsored defined benefit plan established by the Province of Ontario, and there is no contractual agreement or stated policy for charging the net defined benefit cost of the plan to the Corporation. The Province of Ontario controls all entities included in the pension plan.
    
    The Corporation’s contributions to the plan are accounted for on a defined contribution basis. Accordingly, the Corporation’s contributions are charged to the Statement of Income and Comprehensive Income in the period the contributions become payable.
  2. Other long-term employee defined benefit plan:
    
    Separation payment benefits:
    
    The Corporation provides separation payment benefits to some of its employees. This benefit was grandfathered for eligible AGCO employees hired by iGO prior to June 30, 2022. These employees are entitled to separation payment in the event of retirement, resignation, or death.
    
    Former full-time AGCO employees hired prior to April 1, 2015, and who have completed at least five years of continuous service as a permanent full-time employee with the AGCO as of April 1, 2015, are eligible for a separation payment equivalent to one week’s base pay for each year of active service up to a maximum of 16 weeks upon retirement, resignation, or death.
    
    Former full-time AGCO employees hired prior to April 1, 2015 and who had not completed five years of continuous service as a permanent full-time employee as of April 1, 2015, will only be eligible for a separation payment in the event of retirement, resignation, or death if they have completed at least 10 years of continuous service as a permanent full-time employee as of the date of their retirement, resignation, or death.
  3. Accumulated compensated leaves:
    
    The Corporation also provides a facility to some of its employees for accumulating their annual earned leaves up to a cap of 125 days. Accumulated leaves can be encashed at the end of the employee’s service.
    
    The Corporation’s obligation for the other long-term employee benefits are the amounts of future benefits that employees have earned in return for their service in the current and prior periods. These benefits are discounted to determine their present values and are unfunded. The discount rate is the yield at the reporting date on AA/AAA credit-rated bonds that have maturity dates approximating the terms of the Corporation’s obligations. The calculation is performed using the projected unit credit method. Any gains and losses are recognized in the Statement of Income and Comprehensive Income in the period in which they arise.
  4. Termination benefits:
    
    Termination benefits are recognized as an expense at the earlier of when the Corporation can no longer withdraw the offer of those benefits and when the Corporation recognizes costs for a restructuring. If benefits are not expected to be settled wholly within 12 months of the end of the reporting period, they are discounted to their present value.
  5. Short-term employee benefits:
    
    Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided.
    
    A liability and expense are recognized for the amount expected to be settled wholly within 12 months of the end of the reporting period if the Corporation has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.
    
    The Corporation also provides a facility to its employees to carry forward one year's vacation from one calendar year to the next. The annual cost of staff vacation is recognized as an expense in the financial statements on an accrual basis.
11. Shared resources costs:
  
  AGCO provides certain resources to iGO including the provision of goods, services or advice by AGCO personnel and through any third-party that has been procured by the AGCO for that purpose ("Shared Resources”). The Shared Resources are charged back to iGO using an overhead rate or based on direct usage if the costs are directly attributable to iGO.
12. General operating, administration and other:
  
  General operating, administration and other expenses are primarily comprised of office supplies and consumables, travel, telecommunication, office space rental, and other miscellaneous expenses.
13. Other income:
  
  Other income represents interest income earned on bank account balances which is recognized when deposited, and a recovery of certain banking fees from Gaming Operators which is recognized when the recovery is charged.
14. Goods and services tax / Harmonized sales tax (GST/HST):
  
  As a prescribed registrant, the Corporation is obligated to calculate and remit GST/HST to the Government of Canada for gaming related operations pursuant to the Games of Chance (GST/HST) Regulations of the Excise Tax Act.
New accounting standards and interpretations issued but not yet effective

The Corporation has not yet applied the following new standards, interpretations and amendments to standards that have been issued but are not yet effective. Unless otherwise stated, the Corporation does not plan to early adopt any of these new or amended standards and interpretations.

Amendments to IAS 1 – Classification of Liabilities as Current or Non-current

The amendments to IAS 1 affect only the presentation of liabilities as current or non-current in the Statement of Financial Position and not the amount or timing of recognition of any asset, liability, income, or expenses, or the information disclosed about those items.

The amendments clarify that the classification of liabilities as current or non-current is based on rights that are in existence at the end of the reporting period, specify that classification is unaffected by expectations about whether an entity will exercise its right to defer settlement of a liability, explain that rights are in existence if covenants are complied with at the end of the reporting period, and introduce a definition of “settlement” to make clear that settlement refers to the transfer to the counter-party of cash, equity instruments, other assets or services.

The amendments are applied retrospectively for annual periods beginning on or after January 1, 2023, with early application permitted. The amendments are not expected to have a material impact on the Corporation.

Amendments to IAS 1 - Presentation of Financial Statements

In February 2021, the IASB issued amendments to IAS 1 Presentation of Financial Statements in which it provides guidance and examples to help entities apply materiality judgments to accounting policy disclosures. The IASB also issued amendments to IFRS Practice Statement 2 Making Materiality Judgments (the PS) to support the amendments in IAS 1 by explaining and demonstrating the application of the four-step materiality process to accounting policy disclosures. The amendments aim to help entities provide accounting policy disclosures that are more useful by replacing the requirement for entities to disclose their significant accounting policies with a requirement to disclose their material accounting policies and adding guidance on how entities apply the concept of materiality in making decisions about accounting policy disclosures.

The amendments to IAS 1 are applicable for annual periods beginning on or after January 1, 2023. The amendments are not expected to have a material impact on the Corporation.

IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors

Amendments to IAS 8, issued in February 2021, introduce a new definition of “accounting estimates” to replace the definition of “change in accounting estimates” and also include clarification intended to help entities distinguish changes in accounting policies from changes in accounting estimates.

The amendments are effective for annual periods beginning on or after January 1, 2023. The amendments are not expected to have a material impact on the Corporation.
Restricted cash

Restricted cash represents cash received from Gaming Operators as performance security and held by iGO in a segregated bank account (Note 3(d)). Pursuant to Operating Agreements, Gaming Operators are required to submit a performance security with the Corporation that may be in form of cash deposits, letter of credits, surety bonds or any other instrument acceptable to the Corporation. Under Operating Agreements, performance security serves as collateral and may be drawn upon by the Corporation to satisfy payments of debts and liabilities of Gaming Operators with the Corporation, losses for which the Gaming Operators are responsible, or for any winnings not paid by Gaming Operators as at March 31, 2023. Due to Gaming Operators represents the liability related to this restricted cash.

The Corporation recognizes the performance security held by iGO in a segregated bank account in the Statement of Financial Position. Performance security issued or maintained by Gaming Operators are not recognized by the Corporation.
Accounts receivable

Accounts receivable of $35,749 (2022 – Nil) are due from Gaming Operators and consist of gaming revenues receivable and non-gaming related chargebacks as at March 31, 2023.
Property and equipment

Costs

Computer Equipment

Audio-video Equipment

Total

Balance at July 6, 2021

$

-

$

-

$

-

Additions

82

-

82

Balance at March 31, 2022

82

-

82

Additions

60

19

79

Balance at March 31, 2023

$

142

$

19

$

161

Accumulated depreciation

Computer Equipment

Audio-video Equipment

Total

Balance at July 6, 2021

$

-

$

-

$

-

Depreciation for the period

16

-

16

Balance at March 31, 2022

16

-

16

Depreciation for the year

29

-

29

Balance at March 31, 2023

$

45

$

-

$

45

Carrying amounts at March 31, 2022

66

-

66

Carrying amounts at March 31, 2023

$

97

$

19

$

116
Accounts payable and accrued liabilities

2023

2022

Accounts payable – Gaming Operators

$

40,155

$

-

Accounts payable and accrued liabilities – general

1,938

-

Short-term employee benefits

260

161

$

42,353

$

161

Accounts payable to Gaming Operators consists of $29,679 (2022 – Nil) relating to the 80% revenue share of gaming revenue and eligible deductions of $10,476 (2022 – Nil) as at March 31, 2023. The Corporation’s accounting policy and exposure to liquidity risks related to accounts payable and accrued liabilities is disclosed in Note 15.

Gaming revenue

The following table details the disaggregation of the Corporation’s gaming revenue by product for the year ended March 31, 2023:

Casino

Betting

Peer-to-Peer Poker

Total

Wagers

$

27,582,415

$

6,969,460

$

992,369

$

35,544,244

Less: Winnings and eligible deductions

(26,727,629)

(6,586,185)

(955,435)

(34,269,249)

Fair value of derivative liabilities

-

(15,130)

-

(15,130)

Gaming revenue

$

854,786

$

368,145

$

36,934

$

1,259,865
Due to the Alcohol and Gaming Commission of Ontario

On April 1, 2022, AGCO and iGO entered into a Shared Resources Agreement (the “Agreement”), pursuant to which AGCO provides human resources, payroll, procurement, facilities, communication and information technology services on a cost recovery basis ("Shared Resources”). The total cost of these Shared Resources was $1,808 (2022 – $1,131), plus HST of $235 (2022 – $147), and is included within the related expense categories on the Statement of Income and Comprehensive Income. The Agreement expired on March 31, 2023 and was renewed on April 1, 2023 for another year.

The AGCO also paid direct expenses, including salaries and benefits of iGO employees and vendor invoices of $7,666 (2022 – $6,133), plus HST of $38 (2022 – $473), and these costs are fully recovered by AGCO.

As at March 31, 2023, $2,703 (2022 – $7,884) is outstanding, inclusive of HST, and is included in Due to the Alcohol and Gaming Commission of Ontario in the Statement of Financial Position.
Employee benefits

a) Defined benefit pension plan:

The Corporation’s required contributions of $464 (2022 – $190) is included in salaries and benefits expenses on the Statement of Income and Comprehensive income.

b) Non-pension employee benefits (unfunded):

The present value of the Corporation’s unfunded other post-employment benefit plans is $178 (2022 – $127).

The main assumptions underlying the valuation are as follows:
- The liability at year-end being the present value of future liability was determined using a discount rate of 3.5% to 4.2% (2022 – 3.1% to 3.2%) representing an estimate of the yield on high quality corporate bonds as at the valuation date. A 1% increase or decrease in the discount rate would result in a decrease of $6 (2022 – $13) or increase of $8 (2022 – $15) to the liability, respectively.
- Future general salary levels were assumed to increase at 3.5% (2022 – 3.5%) per annum.
- Cost of living adjustments (“COLA”) were assumed to increase at 1.0% (2022 – 1.0%) per annum.
Related parties

The Corporation is a legal subsidiary of the AGCO and is also related to various other government agencies, ministries and Crown corporations. All transactions with these related parties are in the normal course of operations and are measured at the exchange amounts, which are the amounts of consideration established and agreed to by the related parties.

Related party transactions include:
- Transactions with the AGCO (Note 10);
- Contributions to the Public Service Pension Fund (Note 3(j)(i) and Note 11(a));
- Key management personnel compensation; and
- Recovery of AGCO’s regulatory costs.
Key management personnel compensation

The Corporation’s key management personnel, consisting of its Board of Directors and senior leadership members including the Executive Director and their direct reports, have authority and responsibility for overseeing, planning, directing and controlling the activities of the Corporation.

Key management personnel compensation includes:

2023

2022

Salaries and short-term employee benefits

$

1,804

$

987

Post employment benefits

138

92

Directors’ fees

14

13

$

1,956

$

1,092

Recovery of AGCO’s regulatory cost relating to iGaming’s Internet Gaming Market

Under Section 12.1 of the AGCO Act, the AGCO is permitted to direct payment from the Corporation. The Operator Agreements between the Corporation and Gaming Operators establish that Gaming Operators are responsible for costs charged by the AGCO in regulating the internet gaming market, regardless of whether the costs are initially billed to the Corporation by the AGCO or billed directly to Gaming Operators. For the year ended March 31, 2023, an amount of $4,254 (2022 – Nil) was billed and collected from the Gaming Operators directly by the AGCO.
Due to the Government of Canada

The Corporation remits GST/HST to the Government of Canada on the basis it will be a Prescribed Registrant pursuant to the Games of Chance (GST/HST) Regulations of the Excise Tax Act. The Corporation’s net tax for a reporting period is calculated using net tax attributable to online gaming activities.

The non-recoverable GST/HST payable to suppliers and the additional imputed tax payable to the Government of Canada on online gaming-related expenses were recognized as payments to the Government of Canada, which are recorded as GST/HST expense on the Statement of Income and Comprehensive Income.

The net tax attributable to online gaming activities results in a 26 per cent tax burden on most taxable online gaming expenditures incurred by the Corporation.

Gaming Operators qualify as distributors as defined in the Excise Tax Act. GST/HST of 13 per cent is self-assessed on the fees paid to Gaming Operators for services provided pursuant to Operating Agreements (see Note 3(n)).
Derivative liabilities

Derivative liability of $15,130 represents the net liability position of all bets placed and open as of March 31, 2023. The derivative liabilities are carried at fair value through profit or loss determined using Level 3 fair value measurement inputs. Fair value is calculated by using appropriate historical hold percentage applied to the outstanding open bet balance. Fair value adjustment of $15,130 was recorded in revenue on the Statement of Income and Comprehensive Income for the year ended March 31, 2023 (2022: Nil).

A 1% increase or decrease in hold percentage would result in $161 decrease or increase in the fair value of derivative liability at March 31, 2023 and corresponding increase or decrease in net income (loss) and comprehensive income (loss) for the year ended March 31, 2023.
Financial Risk Management

The carrying values of cash, restricted cash, accounts receivables, due to AGCO, due to Government of Canada, due to Gaming Operators, and accounts payable and accrued liabilities approximate their fair values because of the short-term nature of these financial instruments.

The Corporation’s financial instruments expose it to a variety of risks. The Corporation has implemented a risk management program to identify and mitigate exposure to credit risk, and liquidity risk.
1. Credit risk:
  
  Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. In the normal course of business, the Corporation is exposed to credit risk from its cash and accounts receivable. iGO holds its cash accounts with federally regulated chartered banks who are insured by the Canadian Deposit Insurance Corporation. The accounts receivable represents the Corporation's maximum exposure to credit risk, however, this risk is mitigated by letters of credit or cash deposited by the Gaming Operators and held by iGO in a segregated bank account, as part of performance security pursuant to the Operating Agreement with each operator (Note 5). Historically, the Corporation also has not experienced any significant losses in accounts receivables.
2. Liquidity risk:
  
  Liquidity risk is the risk that the Corporation will not be able to meet its financial obligations as they fall due. The Corporation manages liquidity risk by maintaining sufficient balances in cash, and managing credit risk as outlined above. The Corporation is exposed to this risk mainly in respect of accounts payable and accrued liabilities, due to AGCO, due to Government of Canada, and due to Gaming Operators, which are all contractually due within one year.
  
  The Corporation maintains the required balance in a segregated bank account for amounts due to Gaming Operators (Note 5).
Capital Management

The Corporation’s objectives in managing capital are to ensure sufficient resources are available to fund future growth of its operations and to provide returns to the Province of Ontario.

The Board of Directors is responsible for the oversight of management, including the establishment of policies related to financial and risk management. The Corporation manages its capital structure and adjusts it in light of changes in economic conditions and the risk characteristics of the underlying assets. The Corporation is not subject to any externally imposed capital requirements.

The Corporation defines capital as total equity. At March 31, 2023, capital under management was equity of $87,477 (2022 – deficit of $8,724).
Contingencies
1. On November 28, 2022, the Mohawk Council of Kahnawa:ke (“MCK”) served a notice of application with the Ontario Superior Court against the Corporation and the Attorney General of Ontario seeking ‘a declaration that the Ontario government does not “conduct and manage” online lottery as required under s. 207(1)(a) of the Criminal Code” as well as challenging the legislative and constitutional authority which underpins the regulated internet Gaming market scheme in Ontario. The application is expected to be heard in February 2024. The Corporation believes that the outcome of this application is not determinable.
2. The Corporation is, from time to time, involved in other various legal proceedings of a character normally incidental to its business. The Corporation believes either the probability of an outflow of resources is not determinable or it is not probable that the ultimate resolution of any of these proceedings and claims, individually or in total, will have a material adverse effect on the Corporation's business, financial results, or financial condition.
Subsequent events

In June and July 2023, the Corporation declared and paid dividends totalling $85,000 to the Province of Ontario.

On April 5, 2023, the Corporation was directed by the Ministry of Finance and the Ministry of Indigenous Affairs to pay monthly revenue sharing payments to the Ontario First Nations Limited Partnership (“OFNLP”). The first monthly payment of $1,400 was made in April 2023 and will continue every month thereafter until March 31, 2024, unless agreed to otherwise by the Corporation and OFNLP.

The Corporation, the Ministry of Finance and the Ministry of the Attorney General are currently in discussions with OFNLP to establish a formal revenue sharing agreement with respect to the Corporation’s gaming revenues.
First-time adoption of IFRS

These financial statements, for the year ended March 31, 2023, are the first the Corporation has prepared in accordance with IFRS. For periods up to and including the year ended March 31, 2022, the Corporation prepared its financial statements in accordance with Canadian Public Sector Accounting (“PSAS”) for provincial reporting entities established by the Canadian Public Sector Accounting Board.

Accordingly, the Corporation has prepared financial statements that comply with IFRS applicable as at March 31, 2023, together with the comparative period data as at March 31, 2022 and for the period from July 6, 2021, to March 31, 2022, as described in the summary of significant accounting policies.

The transition to IFRS did not result in any adjustments to the equity or net income and comprehensive income as at March 31, 2022 and for the period from July 6, 2021, to March 31, 2022. IFRS 1 allows first-time adopters certain exemptions from the retrospective application of certain requirements under IFRS. No exemptions were applicable to the Corporation.

Annual Report 2022-2023

Table of Contents

Letter from the Chair

Letter from the Executive Director

Description of Activities Over the Year

Breaking Down Barriers

Growing the Economy

Empowering Customers

Building iGO Up

Operational Performance

Risk Events

External Risks

Internal Risks

Board Details

Achievements in Accordance with Mandate

Financial Highlights

Management’s Discussion and Analysis

For the year ended March 31, 2023

Forward-Looking Statements

Non-IFRS measures

Financial Summary: (in Millions)

Financial Statements of
iGaming Ontario
Year ended March 31, 2023 and for the period from July 6, 2021 (date of incorporation) to March 31, 2022

iGaming Ontario

Management Statement of Responsibility for Financial Reporting

Responsibility for Financial Reporting:

INDEPENDENT AUDITOR’S REPORT

iGaming Ontario

Statement of Financial Position

As at March 31, 2023 and 2022
(In thousands of dollars)

iGaming Ontario

Statement of Income and Comprehensive Income

Year ended March 31, 2023 and for the period from
July 6, 2021 (date of incorporation) to March 31, 2022
(In thousands of dollars)

iGaming Ontario

Statement of Changes in Equity (Deficit)

Year ended March 31, 2023 and for the period from
July 6, 2021 (date of incorporation) to March 31, 2022
(In thousands of dollars)

iGaming Ontario

Statement of Cash Flows

Year ended March 31, 2023 and for the period from
July 6, 2021 (date of incorporation) to March 31, 2022
(In thousands of dollars)

iGaming Ontario

Notes to Financial Statements

Year ended March 31, 2023 and for the period from
July 6, 2021 (date of incorporation) to March 31, 2022
(In thousands of dollars)

Annual Report 2022-2023

Table of Contents

Letter from the Chair

Letter from the Executive Director

Description of Activities Over the Year

Breaking Down Barriers

Growing the Economy

Empowering Customers

Building iGO Up

Operational Performance

Risk Events

External Risks

Internal Risks

Board Details

Achievements in Accordance with Mandate

Financial Highlights

Management’s Discussion and Analysis

For the year ended March 31, 2023

Forward-Looking Statements

Non-IFRS measures

Financial Summary: (in Millions)

Financial Statements of iGaming OntarioYear ended March 31, 2023 and for the period from July 6, 2021 (date of incorporation) to March 31, 2022

iGaming Ontario

Management Statement of Responsibility for Financial Reporting

Responsibility for Financial Reporting:

INDEPENDENT AUDITOR’S REPORT

iGaming Ontario

Statement of Financial Position As at March 31, 2023 and 2022 (In thousands of dollars)

iGaming Ontario

Statement of Income and Comprehensive Income Year ended March 31, 2023 and for the period from July 6, 2021 (date of incorporation) to March 31, 2022 (In thousands of dollars)

iGaming Ontario

Statement of Changes in Equity (Deficit) Year ended March 31, 2023 and for the period from July 6, 2021 (date of incorporation) to March 31, 2022 (In thousands of dollars)

iGaming Ontario

Statement of Cash Flows Year ended March 31, 2023 and for the period from July 6, 2021 (date of incorporation) to March 31, 2022 (In thousands of dollars)

iGaming Ontario

Notes to Financial Statements Year ended March 31, 2023 and for the period from July 6, 2021 (date of incorporation) to March 31, 2022 (In thousands of dollars)

Financial Statements of
iGaming Ontario
Year ended March 31, 2023 and for the period from July 6, 2021 (date of incorporation) to March 31, 2022

Statement of Financial Position

As at March 31, 2023 and 2022
(In thousands of dollars)

Statement of Income and Comprehensive Income

Year ended March 31, 2023 and for the period from
July 6, 2021 (date of incorporation) to March 31, 2022
(In thousands of dollars)

Statement of Changes in Equity (Deficit)

Year ended March 31, 2023 and for the period from
July 6, 2021 (date of incorporation) to March 31, 2022
(In thousands of dollars)

Statement of Cash Flows

Year ended March 31, 2023 and for the period from
July 6, 2021 (date of incorporation) to March 31, 2022
(In thousands of dollars)

Notes to Financial Statements

Year ended March 31, 2023 and for the period from
July 6, 2021 (date of incorporation) to March 31, 2022
(In thousands of dollars)