Ontario seeks court ruling on allowing online gamblers to play with non-Canadians

The Ontario government is seeking a landmark court ruling on whether it can legally permit online gamblers in the province to play with individuals outside Canada. The case, which is set to be heard in Toronto this fall, could have significant financial implications for the province's online gaming industry.

Ontario Attorney General Doug Downey has pointed to the legal uncertainty surrounding the issue, stating that the federal Criminal Code does not clearly address whether Ontarians can participate in online gaming with international players.

“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,” said Downey's press secretary, Jack Fazzari, in an email to CBC News.

At stake in the case are potentially hundreds of millions of dollars in wagers on online poker and daily fantasy sports betting. Currently, Ontario players are restricted to playing among themselves, leading many to bypass provincially regulated sites in favor of international platforms that offer higher stakes and a wider variety of games.

“You could see, I think, a significant increase in the poker business in the province,” said Paul Burns, CEO of the Canadian Gaming Association. Burns noted that a ruling in favor of allowing Ontario players to mix with global participants could bring those gamblers back to regulated sites, boosting provincial revenue.

The proposal has faced opposition from provincial lottery and gaming agencies across Canada, including those in British Columbia, Saskatchewan, Manitoba, and the Atlantic provinces. These agencies fear that Ontario's plan could lead to increased illegal online gambling in their regions.

Ontario's online gambling market has become a substantial revenue stream for the province. In the 2023-24 fiscal year, including taxes, the government collected an estimated CAD 790 million ($576.2 million) from the industry.

Industry officials argue that online poker and daily fantasy sports thrive on large player pools, which Ontario alone cannot provide. Lawyers for NSUS Group, the owners of GGPoker, one of the world’s largest online poker rooms, stated that the current system “drives players to unregulated black market operators who are able to offer better experiences in the international market.”

Legal experts, including Don Bourgeois, who has extensive experience in gambling law, have highlighted the ambiguity in the Criminal Code. While the Code clearly prohibits attracting players from other Canadian provinces without their consent, it remains silent on the issue of international players. "It's an important business issue as well as a legal issue around who can participate in gambling in Ontario," Bourgeois said, as per the CBC report.

Ontario's proposal aligns with practices in European countries such as the U.K., Germany, and Sweden, which allow international participation in regulated online poker. The province's online gambling market has seen significant growth since the launch of iGaming Ontario in April 2022, with 86% of online gamblers now using regulated sites, compared to 70% before the introduction of iGaming Ontario.