The government of Ontario, led by Premier Doug Ford, is seeking a crucial court ruling that would allow residents of Ontario to legally participate in games involving international players, thereby reshaping its online gaming landscape. The Ford administration has requested this judicial guidance to determine the legality of international participation under the Canadian Criminal Code.
The Ontario Court of Appeal is set to hear the case this upcoming fall. The government's challenge to the court specifically questions: "If legal online gaming and sports betting participants are allowed to engage in games and betting involving individuals outside of Canada, under the Criminal Code, does legal online gaming and sports betting remain legal?" This question is critical as it could open the door to significantly expanding the player base and potentially increase gambling revenue by leveraging global betting pools.
Interests and Industry Perspectives
The court's decision will have far-reaching implications, and Ontario's online poker and daily fantasy sports platforms could gain access to hundreds of millions of dollars in international stakes. Currently, these platforms are limited to domestic players, restricting their market coverage and growth potential.
Paul Burns, the Chairman and CEO of the Canadian Gaming Association and an intervener in the case, believes that this move will significantly boost Ontario's poker business. He noted, "I think you'll see a significant growth in the province's poker business."
Online gambling institutions believe that many residents of Ontario prefer international sites that offer higher stakes and more diverse betting options, suggesting that allowing international integration would attract these players back to the provincially regulated system. This would not only increase revenue but also integrate these players into a regulated and safer gambling environment.
National Concerns and Legal Precedents
The possibility of Ontario allowing international online gambling has drawn national attention, with several other provincial lottery and gambling agencies urging the court to block this expansion. They argue that it could exacerbate the challenges of managing and regulating online gambling within their jurisdictions.
Historically, the use of the courts to make such "reference" decisions is rare, with the last notable case being Ontario's 2019 challenge against the federal carbon tax, which it ultimately lost. According to an analysis published by CBC News, the outcome of this case could set an important precedent for online gambling across Canada.
Local and International Dynamics
Ontario has proposed a model that allows international but not inter-provincial participation in online gambling. This model aims to comply with the existing legal framework while expanding market coverage. A spokesperson for Ontario's Attorney General Doug Downey emphasized the need for clarification on this issue, stating, "The federal Criminal Code is not clear enough on whether Ontarians can participate in online games with players from other countries."
If the court rules in favor of Ontario, the province's online gambling revenue could see a significant increase. Last fiscal year, Ontario's regulated online gambling sites generated substantial revenue, but the inclusion of international players could greatly boost these figures.
