Ontario Seeks Landmark Ruling on Cross-Border Online Gambling

Premier Doug Ford's government is pursuing a groundbreaking court ruling to determine if Ontario's regulated online gaming sites can legally allow provincial gamblers to play with individuals outside Canada.

This case, scheduled for a Toronto courtroom this fall, could set a major precedent in online gaming regulations.

Triggered by an order-in-council from Ford's cabinet earlier this year, the case asks the Ontario Court of Appeal to decide if "legal online gaming and sports betting remain lawful under the Criminal Code if its users were permitted to participate in games and betting involving individuals outside of Canada."

This decision could impact hundreds of millions of dollars in potential wagers, especially on online poker and daily sports fantasy betting sites, which currently restrict Ontarians to local player pools.

Paul Burns, president and CEO of the Canadian Gaming Association, emphasizes the potential benefits, stating, "You could see a significant increase in the poker business in the province."

Allowing international play could draw many Ontario poker players back from unregulated international sites to the regulated system, boosting provincial revenue.

However, this move faces opposition from lottery and gaming agencies across other provinces, which argue that it could increase illegal online gambling in their regions.

They have collectively urged the court to reject Ontario's proposal.

Ontario Attorney General Doug Downey seeks clarity on the issue, with his press secretary Jack Fazzari stating, "The federal Criminal Code is not sufficiently clear on whether Ontarians can participate in online gaming with players in other countries. It's important that we get this right to provide the most legal certainty to operators and players as this new industry grows in Ontario."

Ontario's proposal would permit international play but exclude players from other Canadian provinces.

This has drawn criticism from other provincial agencies, which are concerned about the proliferation of illegal gambling.

The case follows Ontario's successful implementation of a regulated online gambling market, managed by iGaming Ontario, which has licensed 47 operators and generated significant revenue for the province.

In the 2023-24 fiscal year, Ontario collected an estimated $790 million from online gambling, with poker only accounting for a small fraction of this.

Lawyers for online gaming companies argue that Ontario's current system drives players to unregulated markets.

They claim that allowing international play would improve the gaming experience and draw more players to regulated sites.

The outcome of this case could reshape the online gaming landscape in Ontario and potentially set a precedent for other jurisdictions considering similar measures.