Ontario’s government, led by Premier Doug Ford, is seeking a pivotal court decision that could reshape its online gaming landscape by permitting Ontarians to legally participate in games with international players. This request for judicial guidance has emerged as Ford’s administration aims to determine the legality of international participation under Canada’s Criminal Code.
The Ontario Court of Appeal is set to hear this case in the upcoming fall season. The administration’s inquiry to the court specifically questions: “Would legal online gaming and sports betting remain lawful under the Criminal Code if its users were permitted to participate in games and betting involving individuals outside of Canada?” This issue is critical as it could open the door to a significantly expanded player base and potentially increase the gaming revenue by tapping into global betting pools.
Stakes and Industry Perspectives
The implications of the court’s decision are substantial, with potential access to hundreds of millions in international wagers for Ontario’s online poker and daily fantasy sports platforms. Currently, these platforms are restricted to domestic players only, limiting their market reach and growth potential.
Paul Burns, President and CEO of the Canadian Gaming Association and an intervenor in the case, believes that this could notably enhance the poker business in Ontario. He noted: “You could see, I think, a significant increase in the poker business in the province.”
Online gaming entities argue that many Ontario residents prefer international sites that offer higher stakes and more diverse gaming options, suggesting that permitting international integration would attract these players back to the provincially regulated system. This would not only increase revenues but also integrate these players into a regulated and safer gaming environment.
National Concerns and Legal Precedents
The potential for Ontario to allow international online gaming has attracted national attention, with several other provincial lottery and gaming agencies urging the court to prevent this expansion. They argue that such a move could exacerbate the challenges of managing and regulating online gambling within their jurisdictions.
Historically, the utilization of the court for such a “reference” decision is rare, with the last notable instance being Ontario’s challenge of the federal carbon tax in 2019, which it lost. The outcome of this case could set a significant precedent for online gaming across Canada, according to the analysis published by CBC News.
Local and International Dynamics
Ontario proposes a model that would allow international, but not inter-provincial, online gambling participation. This model is designed to adhere to the existing legal frameworks while expanding the market reach. A spokesperson for Ontario’s Attorney General, Doug Downey, emphasized the need for clarity on this issue, stating: “The federal Criminal Code is not sufficiently clear on whether Ontarians can participate in online gaming with players in other countries.”
Should the court rule in favor of Ontario, the province could see a notable increase in its online gambling revenue. Last fiscal year, Ontario’s regulated online gambling sites generated considerable revenue, but the inclusion of international players could potentially increase these figures dramatically.
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