Court to Rule on Legality of Cross-Jurisdictional Online Gaming
Author:
APAnastasia Petkov
|Published: March 14th, 2024
The legal landscape of online gaming in Ontario may soon change significantly as the province questions the legality of cross-border online gaming and wagering.
Ontario's government has submitted an Order in Council to the province's Court of Appeal, seeking clarification on whether residents can engage in online gaming and betting with players located outside Canada without violating the province's Criminal Code, particularly in the context of daily fantasy sports (DFS), which remains a contentious issue globally.
The province emerged as a burgeoning sports betting and iGaming market in 2022, prompting operators like DraftKings and FanDuel to cease DFS operations due to regulatory constraints.
These constraints included restrictions on cross-jurisdictional participation, leading to insufficient liquidity for prize pools.
DFS operators in Ontario are subject to the same $100,000 annual licensing fee imposed on sportsbooks by the Alcohol and Gaming Commission of Ontario (AGCO).
Additionally, DFS operators must adhere to a 20% tax rate on revenue, payable to the province.
Despite the absence of DFS offerings, DraftKings and FanDuel continue to provide online sports betting services in Ontario.
However, potential changes in AGCO's jurisdictional regulations could impact both sports betting and DFS operations.
Ontario's regulatory landscape for iGaming witnessed recent updates, including amendments to the Registrar's Standards for Internet Gaming to promote safe and fair marketing practices.
Effective as of February 28, these amendments prohibit using certain marketing tactics, such as including cartoon characters, social media influencers, and celebrities likely to appeal to minors.
Furthermore, operators are restricted from featuring athletes in promotional materials unless they explicitly endorse responsible gambling practices.
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