Date of publication: September 26, 2025, at 12:56h.
Last updated on: September 26, 2025, at 01:13h.
- Crackdown follows extensive provincewide inspections of 200 licensed venues during July and August
- AGCO’s testing indicates that the gaming machines significantly depend on chance
- Prime Skill Games has initiated legal proceedings to challenge the AGCO’s ruling
On Friday, the Alcohol and Gaming Commission of Ontario (AGCO) released a statement confirming that its crackdown on unauthorized gaming machines resulted in the removal of 50 devices from various restaurants, bars, and lottery retailers throughout the summer.
AGCO inspectors conducted over 200 inspections of liquor-licensed and lottery retail establishments in July and August. The 50 machines flagged were identified as Prime Slots, which Casino.org has reported on earlier.
The AGCO asserted that these machines have been functioning illegally without regulatory supervision and do not qualify as games of skill, contrary to the manufacturers’ claims; they operate on chance.
“Under Canadian law, such machines are only permitted if sourced from a licensed supplier and utilized in a regulated environment like a casino or charitable gaming centre,” stated the AGCO on Friday.
Legal Challenge
This legal battle has been an ongoing contention between the AGCO and manufacturers of gaming machines, such as Prime Skill and GotSkill?
“While other regions face the infiltration of these unauthorized gaming machines, the AGCO has taken a decisive approach to prevent them from becoming established in Ontario. Our recent regulatory measures illustrate our thorough approach and enduring commitment,” remarked AGCO CEO Dr. Karin Schnarr.
Despite updates made to their products, which the company claims enhances their skill-based gaming features, GotSkill? faced a setback in the Ontario Superior Court in July, where the judge confirmed that the machines indeed qualify as gambling devices.
AGCO Regulatory Actions
Prime Skill has lodged an application in court to contest the AGCO’s ruling and actions.
This Friday morning, Prime Skill Games CEO Matt Zamrozniak provided a statement to Casino.org regarding the AGCO’s announcement:
“AGCO has never directly contacted Prime Skill Games nor issued any formal orders against us,” he asserted. “The Commission’s focus has continually been on our retail associates. Faced with ongoing threats towards those partners, we proactively chose to temporarily pause certain operations. This decision was ours and not influenced by any judgment against our machines!”
“We are confident in the legality of our technology, which incorporates a genuine skill element, and we stand ready to submit our machines for independent examination. Regrettably, despite our persistent requests, AGCO has yet to provide us that opportunity or establish transparent review standards.”
A Widespread Issue
Zamrozniak informed Casino.org in July that his company operates in over 200 locations throughout Ontario, including bars, convenience stores, gas stations, and even a piercing studio.
The AGCO acknowledged the challenge in regulating what some manufacturers label as skill games, a sector that has proliferated across North America. The regulator cited American Gaming Association (AGA) data revealing approximately 625,000 unregulated gaming machines in the United States, raking in an annual revenue of about $30 billion (approximately $41.3 billion CAD).
“Despite being technically competitors, we advocate for Canadian businesses that contribute taxes, create jobs, and engage with their communities,” said Zamrozniak.
“We prefer to compete with a legitimate Canadian enterprise rather than unauthorized machines that lack accountability. We share with GotSkill? the fundamental belief that skill-based gaming warrants fair and transparent legal assessment. Our commitment remains steadfast: protecting our clients, acting with integrity, and seeking the clarity that AGCO has yet to provide.”