Three of Canada’s major provincial lottery corporations have filed an appeal with the Supreme Court of Canada, challenging a pivotal legal ruling that could transform the country’s online gambling landscape.
The appeal contests a recent decision by the Ontario Court of Appeal that would allow Ontario to pool players from outside the province, and potentially outside Canada, into its regulated iGaming market.
A United Front Against Ontario’s Expansion
Manitoba Liquor and Lotteries, the British Columbia Lottery Corporation (BCLC), and the Atlantic Lottery Corporation (ALC) have united to dispute the November ruling. The lottery corporations in Canada argue that Ontario’s plan to connect its players with international liquidity pools violates the federal Criminal Code, which they contend limits provincial gaming management strictly to within provincial borders.
The Core Legal Dispute
At the heart of the case is the interpretation of the phrase “conduct and manage a lottery scheme in that province.” In its November verdict, the Ontario Court of Appeal favored a broad reading, suggesting that provinces could legally enter into cooperative agreements with foreign jurisdictions. The dissenting lotteries argue for a narrower interpretation, insisting that “in that province” means operations must remain entirely domestic.
Implications for Peer-to-Peer Gaming
The outcome of this case will heavily impact peer-to-peer verticals like online poker and daily fantasy sports, which rely on large player pools for liquidity. While iGaming Ontario sees “significant opportunities” in connecting with international markets, the appeal is expected to delay any such implementation for the foreseeable future.
With the Supreme Court file officially opened as of December 18, the Canadian gaming industry now faces a lengthy period of uncertainty regarding the future of interprovincial and international liquidity sharing.
