Ontario has cracked down on what it says was unauthorized offshore business by two companies involved in regulated betting in Canada.

The Alcohol and Gaming Commission of Ontario (AGCO) served two online gambling business-to-business suppliers with fines for involvement in illegal offshore markets.

The AGCO announced that Relax Gaming Limited and Arrise Solutions Limited each received a $40,000 fine.

The fines come amid broader scrutiny of gambling technology suppliers, including separate media reports alleging that Sportradar has exposure to unregulated markets. The AGCO has not announced any enforcement action against Sportradar.

What the AGCO Uncovered

The AGCO found that Relax Gaming and Arrise Solutions offered games on illegal sites accessible in Ontario, prompting the penalties. The AGCO didn’t name the offshore gambling sites.

Relax Gaming and Arrise Solutions are both registered by the AGCO to create and supply slot and casino-style games for play on Ontario’s sponsored gambling sites.

Both firms also have a presence in the U.S. online gambling market.

Relax Gaming North America is licensed in Pennsylvania as an Interactive Gaming Manufacturer and has internet-gaming activity in New Jersey, according to the New Jersey Division of Gaming Enforcement.

Arrise publicly describes a U.S. presence through an “ARRISE United States” page.

Relax Gaming is part of Kindred, now owned by French lottery giant FDJ United.

Meanwhile, Arrise appears harder to pin down publicly. Its Malta entity is licensed by the Malta Gaming Authority. The company is commonly associated with the Pragmatic Play supplier ecosystem.

Why it Matters in Ontario

The AGCO said in a release that it prohibits companies operating in the legal online gambling market from offering their products to unregulated websites.

“The AGCO aims to disrupt unregulated gaming and its supply chains to safeguard Ontarians and maintain gaming integrity in the province,” the agency said, adding that it “monitors the market for regulated entities supplying the unregulated sector.”

The regulator said that Relax Gaming and Arrise Solutions cooperated in the investigation.

“Unregulated gaming sites operate outside that framework, meaning players have no assurance of fair games, timely withdrawals, or access to meaningful dispute resolution,” said Dr. Karin Schnarr, Chief Executive Officer and Registrar, AGCO. “When regulated games appear on unregulated sites, it risks enabling a market that exposes players to real harm.”

Bigger Picture

As the AGCO alluded to, the fines hit close to the heart of arguments to legalize online gambling. Online gambling proponents claim that legalization is the way to combat the offshore gambling sector.

To bolster this claim, the industry relies on the “responsible gambling” model. However, research often finds it ineffective, leaving many consumer risks unaddressed. In Ontario, some policymakers are seeking to ban online betting ads. Others want a Canadian national framework.

The RG model does not prevent widespread financial harm but places responsibility on users of potentially addictive products, a core element in both unregulated and regulated markets. Legal and illegal gambling platforms both typically make reference to responsible gambling.

Nonetheless, regulated platforms do have some effective consumer protections, such as requiring operators to segregate player funds from operating money.

The regulated industry must also process player withdrawals, though only a minority withdraws money.

While the Ontario fines pertained to Relax Gaming and Arrise Solutions, the cases prompt questions about the global gambling industry.