Education Minister Liz Sandals says both police and her ministry are probing the death of the four-month-old boy on Feb. 14.
She says there's no record of complaints about the facility.
Sandals says she's not yet aware of the cause of the boy's death.
There have been similar incidents that have prompted the governing Liberals to propose changes to laws governing daycares.
The ministry is being sued by the family of a two-year-old girl who died last summer in another unlicensed daycare in York Region.
Police launched an investigation in November after the death of a nine-month-old child at an unlicensed home daycare in Markham.