Ontario’s government is seeking legal clarity on whether the province’s online gaming platforms could allow local players to gamble alongside non-Canadians.

Premier Doug Ford and his administration are pursuing a landmark court ruling on whether Ontario's online gaming sites could permit residents to engage in gambling with international participants. This legal action, prompted by an order-in-council from Ford’s cabinet, is scheduled to be reviewed in a Toronto court this autumn.

The central issue for the Ontario Court of Appeal is whether online gaming and sports betting would remain lawful under the Criminal Code if Ontario residents are allowed to interact with players from outside the country. The ruling could have significant financial ramifications, potentially unlocking hundreds of millions of dollars in wagers on online poker and daily fantasy sports betting, both of which are currently restricted to domestic players.

CGA Expects “a Significant Increase in the Poker Business”

The Canadian Gaming Association (CGA), which represents the gaming industry, is also participating in the case. Paul Burns, the CEO and president of CGA, expressed the association’s viewpoint, stating that the move could lead to “a significant increase in the poker business in the province.”

By enabling Ontario players to join international player pools, the province could revitalise its poker industry, which currently sees many players gravitating towards unregulated international sites in search of higher stakes. Advocates of the government’s proposal argue that this change could draw these players back to regulated platforms, thereby increasing revenue.

Controversy and Opposition

The proposal has stirred controversy and met with opposition from various provincial lottery and gaming agencies. Agencies from British Columbia, Saskatchewan, Manitoba, and the Atlantic provinces have all voiced concerns that Ontario’s plan could exacerbate the spread of illegal online gambling within their regions. They argue that by allowing international play, Ontario may undermine its own regulated systems, as Canadian players from outside Ontario might be tempted to participate on global platforms operated by Ontario-regulated companies, despite such activities being technically illegal.

“It’s Important That We Get This Right”

Ford’s government has submitted over 700 pages of documentation to the court in support of its plan. The office of Attorney General Doug Downey contends that the federal Criminal Code is ambiguous regarding the legality of permitting domestic players to engage in online gaming sessions with non-Canadians. They are seeking legal clarification that would provide certainty for both operators and players. Jack Fazzari, Downey’s press secretary, emphasised in an email to CBC News, “It’s important that we get this right.”

The proposal would, however, exclude players from other Canadian provinces from participating with international players.

This case has garnered considerable national attention, particularly in light of a recent ruling upholding Ontario’s current online gambling framework following a legal challenge by the Mohawk Council of Kahnawà

aimed at overturning the province’s legalisation of online gambling. Ontario has permitted private companies to legally operate online gaming platforms since April 2022, while other provinces continue to exercise tighter controls through their own lottery and gaming agencies.

A Decision That Could Transform Ontario’s Online Gaming Industry

The outcome of this case could potentially transform Ontario’s online gaming industry, with industry experts highlighting the importance of “pool liquidity” in online poker and daily fantasy sports betting, where larger player pools are known to enhance the gaming experience and drive profitability. The CGA and online gaming companies argue that by allowing international participation, Ontario would provide more options and a better experience for consumers, all within a legal and properly regulated framework.

The court’s decision will determine whether Ontario can further expand its online gaming market to include global participants, potentially setting a precedent for other Canadian provinces.

The proposal also discusses iGaming Ontario’s commitment to ensuring the identity, legal age, and eligibility of Ontarians joining international online pools, while maintaining robust anti-money laundering measures and responsible gambling initiatives.

Several European countries, including Germany, the UK, and Sweden, which have regulated online gambling, allow global participation in online poker.