AGCO Crackdown: 50 Illegal Gaming Machines Seized in Province-Wide Sweep

Crackdown results from a province-wide sweep of 200 licensed establishments in July and August
AGCO confirms the gaming machines mainly rely on chance
Prime Skill Games is challenging AGCO’s decision in court

The Alcohol and Gaming Commission of Ontario (AGCO) has announced its decision to remove 50 illegal gaming machines from various establishments, such as restaurants and bars, during a recent inspection carried out in the summer months.

Gaming crackdown — Image by nathan-osman from Pixabay

A Prime Skill Games machine. The AGCO announces it has pulled 50 gaming machines after a province-wide sweep in July and August. (Image: Prime Skill Games)

During the inspections, AGCO inspectors completed over 200 checks across liquor-licensed and lottery retail outlets. The machines identified and pulled from service were identified as ‘Prime Slots’, which have previously raised concerns within the industry.

The AGCO clarified that these machines have been operating without the necessary regulatory oversight and should not be classified as games of skill, contrary to claims made by their manufacturers, as they predominantly depend on chance.

According to AGCO, “These machines are not permitted under Canadian law unless obtained from a licensed supplier, approved and used within regulated environments such as casinos or charitable gaming centres.” This statement triggers a legal battle over the categorisation of allegedly unlawful gaming machines.

Court Fight

The recent pull of these machines solidifies the ongoing legal disputes between AGCO and manufacturers like Prime Skill and GotSkill?.

“While other regions are grappling with the proliferation of illegal gaming machines, AGCO remains committed to preventing their establishment within Ontario,” stated Dr. Karin Schnarr, CEO of AGCO.

Last July, despite altering their product in a bid to classify it more as a skill-based game, GotSkill? faced legal backlash in the Ontario Superior Court where the judge declared these machines as gambling-related devices.

AGCO’s Enforcement Measures

In response, Prime Skill Games has lodged an application challenging AGCO’s ruling.

On a recent morning, Prime Skill Games CEO Matt Zamrozniak issued a statement remarking:

“Our company has not received direct communication from AGCO, nor have they issued a formal order against us. Their actions seem purely directed at our retail partners. Faced with constant threats, we made the pre-emptive decision to temporarily halt certain operations—this decision was ours, not due to an official finding against our machines.”

He further asserted their confidence in the legality of their technology, emphasizing that they are always open to independent testing and regret that AGCO has yet to provide them with such an opportunity.

A Widespread Issue Across North America

Zamrozniak, in conversations with Casino.org, noted that their company is operational in more than 200 locations throughout Ontario, including bars, convenience stores, and gas stations.

Moreover, AGCO highlighted the challenges in managing what have been tagged as skill games, a market that has swelled in North America. Citing data from the American Gaming Association (AGA), it was mentioned that there are approximately 625,000 unregulated gaming machines in the U.S. alone, which amass an estimated annual revenue of around US$30 billion (approximately AUD 41.3 billion).

Zamrozniak also stated, “We prefer to compete with lawful Canadian businesses that contribute to the economy rather than with illegal machines that lack oversight. We maintain a unified belief with GotSkill? that skill-based gaming should undergo a fair review in accordance with the law. We must protect our clients, act ethically, and seek clear guidelines that have been denied to us by AGCO.”

In conclusion, the AGCO’s proactive approach to regulation demonstrates the ongoing quest for integrity in the gaming industry in Ontario, highlighting the persistent battle against unregulated gaming operations.

Key Facts: AGCO’s inspection outcomes raise significant questions about the future of a multitude of gaming machines in Ontario and the legal ramifications faced by manufacturers. As the industry continues to evolve, regulation will remain a crucial element in ensuring fair play and accountability.