Streamlining Regulations and Introducing New Ticket Options for the Ontario Market
The Alcohol and Gaming Commission of Ontario (AGCO) has announced updates to its Break Open Tickets (BOTs) licensing framework, introducing three significant reforms designed to reduce regulatory burdens and respond directly to sector feedback.
The updates encompass the immediate authorization of new ticket types, a mandatory transition to the Revenue Split Model by late September 2026, and added operational flexibility for Gaming Related Suppliers regarding ticket graphics approval.
Overview of Regulatory Changes
1. Licensing of New $0.50 and High-Count $1 Tickets
Informed by direct sector feedback, the AGCO is now permitting the licensing of new $0.50 tickets and $1 tickets with counts of more than 5,000 as of July 29, 2026. Suppliers can submit these specific ticket types to be approved and added to the BOT licensing Schedule under the Revenue Split Model. Existing approved ticket types remain completely unaffected until the formal transition date.
2. Universal Transition to the Revenue Split Model
Starting September 30, 2026, all approved BOT types will be transitioned and licensed under the Revenue Split Model (formerly referred to as Section B). Under this framework, expenses from 50% of the net win are allocated as follows:
- Supplier Expenses (Paid by Supplier): Full cost of HST, seller commission (which becomes variable), shipping and other expenses, all dispenser-related costs, and the licence fee.
- Charity Expenses (Paid by Charity): Charity administration costs.
To streamline compliance, charities will continue using the existing Break Open Ticket Lottery Report. During the transition, both revenue models may be reported on the same form, and charities are no longer required to report administrative expenses, seller commissions, or dispenser fees.
3. Flexibility for Ticket Graphics Approval
To further reduce administrative overhead, the AGCO has removed the mandatory requirement for Gaming Related Suppliers (GRS) to submit BOT graphics during the licensing process, though the Registrar retains the authority to request them as a condition for approval. Suppliers must still fully comply with standards outlined in the Standards for Suppliers of Goods and Services: Break Open Tickets and the Lottery Licensing Policy Manual, covering ticket construction, security, advertising materials, and responsible gambling.
