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AGCO suspends Wholesale Smoke’s retail lottery registration for possessing illegal products

According to the Ontario regulator, ‘selling lottery tickets responsibly and with the integrity required in the public interest depends on a registration holder's ability to operate ethically.'

2 min read
AGCO suspends Wholesale Smoke’s retail lottery registration for possessing illegal products
Key Points
AGCO inspectors identified prohibited nicotine and erectile dysfunction products at the retail store on more than once occasion
Wholesale Smoke was also penalised for obstructing investigators during two separate compliance inspections

The Alcohol and Gaming Commission of Ontario (AGCO) has suspended the lottery seller registration of Wholesale Smoke after identifying the convenience store’s possession of prohibited nicotine and erectile dysfunction products. 

Wholesale Smoke also obstructed investigators from conducting two separate compliance inspections, while the AGCO previously cited the licensee for selling the prohibited products on 10 December 2025 and 4 March 2026.

“Selling lottery tickets responsibly and with the integrity required in the public interest depends on a registration holder's ability to operate ethically and comply with all applicable rules and regulations,” the AGCO said. 

“The sale of prohibited products – particularly after prior warnings – and the alleged obstruction of regulatory inspections raise serious concerns about whether the registration holder can meet that standard.”

In addition to the proposed 30-day suspension, the AGCO will look to alter Wholesale Smoke’s registration to strengthen compliance oversight and help ensure prohibited products cannot be sold, advertised, stored or offered. 

"Lottery retailers are entrusted to operate in a way that is lawful, transparent and consistent with the public interest. The sale of prohibited products and any obstruction of inspectors undermine that trust,” AGCO Registrar and CEO Dr. Karin Schnarr said. 

“Where retailers fail to meet their obligations, the AGCO will take action to protect consumers and uphold confidence in Ontario's regulated marketplace."

Great Canadian Entertainment was fined $120,000 by the AGCO for using unauthorised gaming system software at four separate casino properties in Ontario, found to be installed between 20 February and 15 March 2025.

The AGCO reviewed 40 instances in which revoked or unapproved bill validator software had been installed, which is meant to verify the authenticity and value of cash inserted into electronic gaming machines and help support anti-money laundering controls.

Ontario’s Standards for Gaming require gaming equipment and software be tested and approved before being deployed in casinos.

Good to know

The AGCO updated its charitable lottery licensing framework to allow eligible charitable organisations to offer media bingo through livestream broadcasts, effective 23 June

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