Lawyers love to point out nuanced distinctions in technical terms, like the difference between a robbery and a burglary, or between a representation and a warranty. Most of these distinctions won’t have much impact on the day-to-day life of your average person.
Since putting together the GME Law Penalty Tracker, we’ve gained a newfound appreciation for one distinction in particular: the difference between a fine and a penalty. Every entry in our Penalty Tracker is an Administrative Monetary Penalty (or “AMP”), not a fine. The two words often get used interchangeably in casual conversation, and in most contexts that doesn’t really matter. However, in a discussion about gaming regulation and compliance, the difference is significant.
Two Different Processes
A fine arises when someone is prosecuted, criminally or under a quasi-criminal offence provision, and if the Crown proves its case, a judge imposes a sanction meant to punish the conduct and denounce it publicly. The standard of proof in these cases is high (beyond a reasonable doubt), and depending on the offence, intent often has to be shown. A conviction can leave the defendant with a record.
An AMP is from a regulatory body. Regulators like the AGCO or FINTRAC can impose one directly, without a prosecution and without a judge. Unlike a fine, the purpose of a penalty is to encourage and compel future compliance, not to punish an act. The Proceeds of Crime (Money Laundering) and Terrorist Financing Act (“PCMLTFA”) governs FINTRAC’s AMPs, while the Gaming Control Act governs AGCO’s
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The Difference in Practice
The distinction between an AMP and a fine manifests practically in three main ways:
Speed. A regulator does not need to build a prosecutable case to issue an AMP. It can act on a compliance finding directly, which is why AMPs tend to follow closer on the heels of an audit or examination than a criminal charge would.
Exposure. A company or officer facing a fine is facing a criminal or quasi-criminal process, with everything that involves, like disclosure obligations, a public court record, and potential registration and licensing consequences tied to a conviction. An AMP does not carry that record.
Defence strategy. Because intent is rarely an element of an AMP, arguing “we didn’t mean to” doesn’t make much of a difference. If the recipient of a penalty decides to appeal, what matters is what the operator’s compliance program actually required, documented, and enforced at the time of the contravention.
Why Should I Care?
Referring to an AMP as a “fine” in client correspondence, a board memo, or public-facing commentary understates the process that produced it and can leave the reader with the wrong impression of what actually happened. It also matters for how a client explains the event to a lender, an investor, or a licensing body in another jurisdiction. A monetary penalty from a regulator under a compliance-focused statute is an entirely different disclosure than a criminal conviction.
Just One More Reason to Check the Tracker
GME Law’s Penalty Tracker has catalogued every publicly available AGCO and FINTRAC enforcement action against Ontario gaming operators since the regulated market launched in 2022. If you’re following enforcement trends in the sector, or you just want a source that correctly treats “fine” and “AMP” as two different things, check out the Penalty Tracker – along with a downloadable PDF version and a mailing list to receive notifications about future updates – HERE.
