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.”
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