The Alcohol and Gaming Commission of Ontario (AGCO) has imposed monetary penalties totaling CA$120,000 on Great Canadian Entertainment (GCE) after discovering unauthorized gaming system software had been used across four Ontario casino properties.

The regulator said the compliance failures involved revoked or unapproved bill validator software installed on gaming machines between February 20 and March 15, 2025. In total, the AGCO identified 40 instances where software that had not received the required authorization was deployed in live casino operations.

According to the regulator, the issue represents a significant breach because gaming systems play a central role in maintaining the integrity, security and oversight of casino operations. These systems process wagers and payments, support slot machine functionality and contribute to controls intended to detect unlawful activity, including money laundering.

Regulator cites failures involving bill validator software

As explained in AGCO’s press release, bill validators are responsible for accepting cash inserted into electronic gaming machines while verifying the authenticity and value of banknotes. Because they also support anti-money laundering safeguards, Ontario regulations require the software operating these devices to undergo testing and receive formal approval before it can be installed in casinos.

The AGCO said the use of revoked or unapproved software bypassed those requirements.

According to the regulator, operating gaming equipment without proper testing, monitoring and authorization weakens safeguards designed to protect the gaming environment and can reduce public confidence in Ontario’s regulated casino market.

The commission emphasized that casino operators are responsible for ensuring all modifications to gaming systems are reviewed, tested and approved before they are introduced into live operations. Deploying unauthorized software therefore constitutes a serious compliance failure under Ontario’s Standards for Gaming.

Operator held responsible for compliance

Although the AGCO did not identify the four casino properties involved, it confirmed they are operated by Great Canadian Entertainment.

Dr. Karin Schnarr, chief executive officer and registrar of the AGCO, said the regulator intends to continue enforcing compliance requirements across the province.

“The AGCO will continue to hold all casino operators accountable for meeting Ontario’s high standards of gaming system integrity,” she said.

The regulator explained that gaming equipment approval requirements exist to ensure systems perform their intended functions reliably before entering service. The approval process also helps verify that equipment meets standards designed to protect both patrons and the integrity of gaming operations.

Under Ontario’s regulatory framework, casino operators that receive an Order of Monetary Penalty may appeal the decision within 15 days. Any appeal is heard by the Licence Appeal Tribunal, an independent adjudicative body that forms part of Tribunals Ontario.

The latest enforcement action follows previous regulatory action involving Great Canadian Entertainment. In May 2025, three Greater Toronto Area casinos affiliated with the company were fined CA$150,000 after regulators found they had failed to prevent minors from gambling.

The AGCO continues to stress that operators are expected to comply fully with all technical and operational standards governing gaming equipment. The regulator maintains that approved software and properly authorized gaming systems remain essential safeguards for ensuring secure casino operations, supporting anti-money laundering measures and preserving confidence in Ontario’s regulated gambling sector.