The highly anticipated hearing for Ontario's reference to the Court of Appeal regarding online gambling, DFS, poker, and pooled liquidity has begun. Ontario argues that allowing Ontario players to compete against international players would involve multiple regulatory systems, making paid DFS contests and online poker games legal.
The highly anticipated hearing for Ontario's reference to the Court of Appeal regarding online gambling, DFS , poker, and pooled liquidity has begun.If daily fantasy sports and poker players from Ontario were allowed to play against competitors outside Canada, there might be one game, but two or more regulatory systems involved.
Ontario’s court reference could have major consequences for DFS and online poker, two iGaming offerings that took a hit when the province launched a new regulatory system for online gambling in April 2022. Some argue Ontario’s proposed model should not be allowed in Canada, including several government-owned lottery corporations and an Indigenous government group with longstanding ties to online gambling, the Mohawk Council of Kahnawà:ke .
“Section 207 imposes a territorial limitation on provincially conducted and managed gaming,” the MCK argued in its factum to the Court of Appeal. “Gaming must be ‘in’ the applicable province to be lawful under s. 207.”Ontario and its allies in the court reference want the judges to stay focused on the question that was asked.
The province’s plan would include keeping local players under Ontario-based regulation and consumer protections while linking them to foreign players who would remain under foreign oversight. Under the model proposed by the provincial government, Ontario players would continue to use sites regulated and made available by the Alcohol and Gaming Commission of Ontario and iGaming Ontario.
It’s these types of controls that Ontario hopes will help persuade the five-judge panel about the legality of its proposal. Canada's Criminal Code states it is legal for a provincial government to offer gambling"in that province," and so Ontario is taking care to show the Court of Appeal the extent to which there is a “real and substantial connection” to Ontario.
That is because, as Ontario and its lawyers have acknowledged, Canadian law restricts provinces from running gambling operations that involve players in another province – unless that other province agrees.
ONLINE GAMBLING DFS COURT OF APPEAL POOLED LIQUIDITY REGULATORY SYSTEMS
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