On November 12, the Ontario Court of Appeal issued a groundbreaking decision allowing the province to legally permit its online gaming players to engage with international participants in peer-to-peer (P2P) games such as online poker and daily fantasy sports (DFS). This ruling opens the door for Ontario’s iGaming market to potentially expand beyond provincial and national constraints.
The decision follows a request from Ontario’s Ministry of the Attorney General, initiated in February 2024, which sought clarity on the compliance of pooling Ontario players with those from outside Canada under the federal Criminal Code. After extensive deliberation, four out of five judges concluded that such international play is lawful, signaling a major shift for Ontario’s iGaming sector.
Currently, Ontario’s regulations restrict paid DFS and poker games to within the province, compelling operators like DraftKings and FanDuel to halt DFS operations in Ontario over three years ago. Poker platforms such as PokerStars, GGPoker, BetMGM, and 888poker continue to function but are limited to local player pools, which has significantly stifled liquidity and attraction. According to industry reports, peer-to-peer poker accounts for merely about 2% of Ontario’s total regulated iGaming revenue.
Advocates for cross-border play, including the Canadian Gaming Association (CGA), Flutter (the parent company of PokerStars), and NSUS (operator of GGPoker), argue that expanding liquidity internationally would inject new life into the market, drawing in more participants. They reassure that Ontario’s segment of any international game would still be “conducted and managed” within the province in line with regulatory standards, while international players would participate through platforms regulated in their jurisdictions.
The Canadian Lottery Coalition (CLC) and the Mohawk Council of Kahnawà:ke (MCK) opposed the initiative, contending that it would contravene the Criminal Code by involving activities beyond the provincial boundaries. However, the prevailing opinion among the judges found no constraint within the Code’s text that would prevent such international play. The ruling referenced Section 207(1)(a) of the Criminal Code, which allows a province to “conduct and manage a lottery scheme in that province, or in that and another province.” The judges concluded that the legislative intent was to avert unauthorized interprovincial growth rather than to hinder international collaboration.
Despite the majority ruling, one judge dissented, expressing concerns that the proposed model might stretch the definition of provincial control. Nonetheless, the court’s decision was hailed as a pivotal victory for Ontario consumers who enjoy pooled gaming activities.
Paul Burns, President of the CGA, celebrated the decision as a significant win for those in Ontario who delight in gaming activities like poker and DFS. He emphasized that the CGA would collaborate with the province and the Alcohol and Gaming Commission of Ontario (AGCO) to formulate a compliant framework.
Yet, despite these promising developments, questions linger around the implementation of international iGaming in Ontario. The CLC has a 30-day window to appeal the decision, and numerous operational challenges, such as governance, taxation, and prize distribution, remain unresolved. These issues highlight the complex landscape that the Ontario iGaming market must navigate as it aims to leverage the newfound opportunity for international play.
The decision marks a significant milestone for Ontario’s regulated iGaming industry, setting the stage for potential growth and innovation through international connectivity. The move aligns with broader trends in the global iGaming sector, where markets increasingly explore cross-border participation to enhance their offerings and competitiveness.
However, there remains a counterpoint to this optimistic outlook. Critics argue that international player pooling could complicate regulatory oversight and introduce risks associated with different jurisdictions’ compliance standards. They voice concerns about the integrity of games and player protection in a more complex international environment. As one industry observer noted, while the potential for growth is considerable, it comes with challenges that must be carefully managed to maintain trust and security in the online gaming space.
As Ontario takes steps toward integrating international players into its iGaming ecosystem, the broader industry will be watching closely. The outcome of this transition could serve as a bellwether for other regions contemplating similar expansions. This transformation may not only shape the future of gaming in Ontario but could also influence regulatory approaches and market strategies worldwide.
Erik Agary is a seasoned writer at True Games Reviews, specializing in gaming, casino games, and interactive entertainment. With a passion for all things digital, Erik dives deep into the latest trends and developments in the gaming world, offering insightful reviews and detailed analysis. His expertise spans across multiple gaming platforms, ensuring comprehensive coverage that resonates with both novice and experienced gamers alike.
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