Over the past several years, the AGCO, in consultation with stakeholders, has been modernizing the regulatory framework governing liquor and gaming to support a shift to a more risk-based and compliance-focused model. Beginning January 1, 2009, the AGCO will be able to use monetary penalties as an additional compliance tool for licensees and registrants who have contravened the Liquor Licence Act (LLA), the Gaming Control Act (GCA) and their Regulations. A monetary penalty is a financial consequence where the licensee/registrant pays a defined amount as a result of a contravention of the GCA and/or LLA. The introduction of monetary penalties is one component towards achieving compliance and also brings Ontario in line with the majority of other Canadian jurisdictions, which have some form of monetary penalty system.
How monetary penalties will affect licensees and registrants back 
The primary purpose of monetary penalties is to act as a bridge between a simple warning and a suspension of a licence or registration, and to provide the AGCO with an added compliance tool for working with licensees and registrants before a significant suspension or revocation may be necessary.
In other words, monetary penalties are designed to promote compliance so that the suspension or revocation of a licence or registration does not become a necessary measure. Monetary penalties, however, will not replace the ability to suspend or revoke a licence or a registration where the situation warrants, but will instead complement other compliance tools available to the AGCO.
Not all types of infractions will be subject to a monetary penalty. Some serious offences under the LLA will still only be subject to suspension or revocation such as serving intoxicated patrons, serving minors and permitting narcotics. Monetary penalties are also not likely to be used in cases where repeated or very serious violations of any kind have occurred. Again, in these cases, a suspension or revocation would more likely be proposed.
Monetary penalties will be specifically geared to the circumstances of offence back
The Registrar of Alcohol and Gaming (the Registrar) will look at each case individually and consider the following criteria, if relevant, when deciding whether or not to impose a monetary penalty:
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Is the monetary penalty likely to help ensure future compliance by the licensee or registrant? |
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What is the disciplinary history of the licensee or registrant, such as prior written warnings, conditions or terms, monetary penalties, suspensions, revocations and/or prosecutions? |
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How was the contravention discovered or disclosed? |
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Did the contravention involve actual or potential injury or loss to persons, property, or both? |
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What is the type, size and location of the licensee, registrant or registered business? |
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Are there any mitigating circumstances, including a good compliance history? |
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Is there a need for general or specific deterrence? |
Monetary penalties as an additional tool to promote compliance back
With the introduction of monetary penalties, the types of compliance tools available to the Registrar to deal with contraventions of the LLA and GCA and their Regulations now include:
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Verbal warning; |
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Written warning; |
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Monetary penalty; |
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Increased monetary penalty; |
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As part of Risk-based Licensing, additional licence conditions/terms of registration; |
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Suspension of licence or registration; |
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Increased suspension of licence or registration; |
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Revocation of licence or registration. |
In other words, monetary penalties can be selected from a series of escalating regulatory options available - ranging from warnings to revocations – in order to gain compliance.
The schedules of monetary penalties that have been established by the Board of the Alcohol and Gaming Commission of Ontario (the Board) and approved by the Minister of Government Services can be viewed on the AGCO website (click here for LLA Schedule of Penalties; click here for GCA Schedule of Penalties). The ranges of monetary penalties are designed to address the specific risks posed by each infraction and by the various industries regulated by the AGCO. It is important to note that what are listed in the schedules are maximums only and that most penalties assessed will actually fall lower in the potential range.
The AGCO is required to use funds collected through monetary penalties exclusively for education and training programs for licensees, permit holders and registrants, as well as for public awareness campaigns, which will further promote compliance with the law in the future.
For any further questions related to monetary penalties, please click here. |
