Prime Skill Games CEO Responds to AGCO: Legal Action Coming

The Alcohol and Gaming Commission of Ontario (AGCO) has decided to remove what it claims are illegal electronic gambling machines from convenience stores around the province. The CEO of Prime Skill Games says his company is ready to defend this decision in court.

Matt Zamrozniak stated in an interview with Casino.org that his business will not simply sit back and follow the AGCO's ruling.

“Our machines are based on skill, not chance. As such, they do not fall under the category of gambling devices that require approval under AGCO’s gaming framework,” Zamrozniak said.

"From the beginning, we invited AGCO’s technical team to evaluate our devices and provided access to all the necessary information. We maintained open communication and never received any formal feedback requiring changes or indicating noncompliance. There were no objections raised during this process. We continue to operate within the bounds of Ontario law and have documentation to prove it.”

In an effort to "combat unregulated gambling and protect the public," AGCO said on Thursday of last week that it would cancel the lottery seller registrations of many businesses in the Toronto area.  It was discovered that such merchants were selling "unapproved electronic gambling machines" under the Prime name.

Businesses that want to offer lottery items on behalf of the Ontario Lottery and Gaming Corporation (OLGC) must register as lottery sellers with the AGCO.

Court Case Is On the Way

According to the AGCO, the machines are unregulated and, like conventional slot machines, depend on luck.

“Unapproved gambling machines have no business being in convenience stores or other locations, particularly those that are available to children and youth,” said AGCO CEO Dr. Karin Schnarr. The AGCO said in its statement that gaming machines have been installed more and more into retail locations across North America.

Zamrozniak claimed that the AGCO action caught his company off guard.  He went on to say that no explicit or direct notice of an evacuation involving the entire province had been given.

“From the very beginning, our intent has been to cooperate and operate transparently,” he said. “We reached out proactively to engage with their team. Until now, we believed that dialogue was ongoing.”

Fear Among Entrepreneurs

There are more than 200 Prime Skill Games sites in Ontario, including taverns, convenience stores, and gas stations.  Even a piercing studio has one.

According to Zamrozniak, the business has been expanding rapidly in Ontario and is currently negotiating with operators in British Columbia and Quebec to provide its product to those regions.

"The impact of AGCO’s sudden and unverified actions is significant,” Zamrozniak said. “It has caused unnecessary panic among business owners, resembling sabotage more than regulation. We want dialogue. We want to cooperate. But AGCO is denying us that opportunity. Despite this, our company will endure. We will prove that we are both legal and resilient.

Zamrozniak expressed his severe disappointment with AGCO's actions and stated that his organization was prepared to work with them. "  Therefore, Prime is "now forced to take legal action, not just to prove that our machines are fully legal, which we will demonstrate in court with expert testimony and legal documentation, but also to hold the AGCO and its individual inspectors accountable," according to Zamrozniak.

Machines to Be Removed

“We will be pursuing legal claims against them for the unlawful and damaging actions they’ve taken,” Zamrozniak said, adding that the AGCO failed to properly inspect the machines in question. “They never opened a real dialogue. We will show that this is a targeted, illegal attempt to remove us from the market.”

According to Zamrozniak, his organization has not obtained any official notification, directive, or order from the AGCO compelling Prime Skill Games to take machines out of convenience stores or other places.

“However, we’re hearing reports that AGCO inspectors are visiting locations and verbally pressuring business owners to remove our machines without presenting any official documents,” he said. “This is deeply concerning and unlawful. We are in active communication with our retail partners and taking a cautious, case-by-case approach until the matter is resolved.”