Legal Challenge Over Ontario's Online Gambling Sparks Uncertainty

The Mohawk Council of Kahnawà:ke (MCK) has initiated a legal challenge against Ontario's online gambling regulatory framework, asserting its illegality.

The case, set for next week, could significantly impact Ontario's standing in Canada's online gambling market.

Ontario, which embraced a competitive online gambling market in April 2022, witnessed $17.2 billion wagered through 72 private websites in three months last year.

The province has positioned itself uniquely by generating over 12,000 full-time equivalent jobs and contributing nearly $1.6 billion to the local economy in its first year.

MCK's legal challenge claims that iGaming Ontario (iGO) operates more as a regulator than a conductor and manager of gambling, violating federal law. iGO contends that it maintains control over critical aspects, aligning with the Criminal Code's provisions allowing provinces to manage gaming "in accordance with any law."

Ontario's auditor general expressed concerns pre-launch, warning of significant business risk and strategic decision-making power ceded to private gaming operators.

Despite warnings, Ontario launched its igaming market with operators like BetMGM, DraftKings, and FanDuel, confident in federal law compliance.

The MCK lawsuit was cited in the auditor general's December 2023 report, reiterating concerns.