I just checked the MNR website under gear restrictions and there is nothing that says you can't use these. Just 2 line limit and within 60m/197ft.
I do remember years ago coming across a piece of legislation that says you can't use a device that reels anything in for you. Setting the hook with a slammer type of tip-up is no different than a downrigger rod in summer using a release to allow the rod to whip up when a fish is on IMHO.
Maybe a personal visit to your local MNR and discussing it with the enforcement supervisor would be in order.
Regards,
Glen