AGCO moves all break open ticket licences to a revenue split model
Ontario's regulator adds new 50-cent and $1 ticket options for charities and drops several reporting and approval steps.
The Alcohol and Gaming Commission of Ontario (AGCO) is changing how break open tickets are licensed. Every approved ticket type will move to a single revenue split model on September 30, 2026.
The regulator announced the changes in an information bulletin on July 29. It said the updates are part of its modernization work and are meant to cut administrative burden and give charities and suppliers more flexibility.
New ticket options
Starting immediately, the AGCO will license new 50-cent and $1 ticket types with counts above 5,000 tickets. Suppliers can submit these types for approval and have them added to the licensing schedule under the revenue split model. The AGCO said feedback from the sector shaped the decision.
The bigger shift comes at the end of September. All approved break open ticket types will move to the revenue split model, which was previously listed as Section B of the schedule of approved ticket types and expense maximums. That applies whether or not a ticket type used to sit in Section A. Tickets ordered or invoiced before September 30 stay under the current rules.
The change covers tickets sold by third-party retailers, tickets sold at a licensee's own location and tickets sold in non-pooling bingo halls.
Who pays what
Under the model, expenses are drawn from 50 per cent of the net win. The supplier covers its own costs including HST, shipping, all dispenser costs and the seller commission, which is now variable. The charity pays the licence fee and its own administration costs. The AGCO noted the model was first announced in December 2021 and amended in July 2022.
Charities will keep filing the Break Open Ticket Lottery Report, and both revenue models may appear on one report during the transition. They will no longer have to report administrative expenses, the seller commission or the dispenser fee. Gaming related suppliers also no longer need to submit ticket graphics for approval during licensing unless the Registrar asks for them. They must still meet the AGCO's standards for printing, security, integrity, advertising and responsible gambling. The Lottery Licensing Policy Manual has been updated to match, including new definitions of ticket "style" and "graphics".