Friday, December 20, 2024

Ontario’s online gaming court battle: What’s at stake? – Durham Post

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Ontario Premier Doug Ford’s government is pushing for a court decision that could reshape Ontario’s online gambling industry. The province is asking the Ontario Court of Appeal to clarify whether its regulated gaming sites can legally allow Ontario players to compete with gamblers outside of Canada.

For a province that already netted $790 million from online gambling last year, the stakes are high.

Ontario’s Push for International Playability

Ontario’s current online gambling framework restricts players to local opponents. However, industry professionals argue that opening the province’s doors to international participants would lead to dramatic revenue growth. The Canadian Gaming Association has voiced its support, claiming the move could enhance online poker and daily fantasy sports betting, both of which rely on larger player pools.

Lawyers for companies like PokerStars and GGPoker say the current system drives players to unregulated international sites in search of higher stakes and better variety. Their argument is straightforward: letting Ontarians join global poker pools would not only curb this exodus but would also integrate these gamblers into the regulated system, bolstering the province’s treasury.

Other provinces, however, are pushing back. Lottery and gaming agencies from British Columbia to Newfoundland have made their opposition clear, expressing concerns that this shift could increase illegal gambling activities in their jurisdictions. Documents from these agencies also reveal evidence that Ontarians are registering on international sites despite the provincial ban—a reality undercutting Ontario’s argument for tighter player control.

Ontario’s Proposal Sparks National Debate

The issue circles back to Canada’s Criminal Code. While it explicitly forbids Ontario from luring players from other provinces without consent, it remains vague about international systems. Ontario’s proposal promises rigorous oversight of offshore participants, including identity checks, anti-money laundering programs, and gambling safeguards. Some legal experts see this as a business decision wrapped in a grey area of the law.

Yet critics note this approach is causing tension in Canada’s already fragmented online gambling ecosystem. Seven provinces have joined forces to oppose Ontario’s plan. They fear that allowing international involvement would undercut their own strictly provincial gambling models, redirecting both players and profits to Ontario.

Some industry experts see parallels between Ontario’s current push and a separate May court case brought by the Mohawk Council of Kahnawàke, which upheld the legality of Ontario’s existing online gambling framework. While that decision reinforced Ontario’s regulatory authority, it left unresolved questions about the reach and compatibility of its gambling markets with global operators.

Poker’s Unique Role in Ontario’s Online Gambling Market

Online poker in Ontario remains a small part of the gambling market, drawing fewer wagers compared to sports betting or casino games. With $1.6 billion wagered annually, its potential growth hinges on broader access to international player pools. Industry leaders argue that integrating offshore players could increase liquidity and attract local players to regulated platforms.

This debate has implications beyond poker. Many gamblers already engage with options like sports betting or Ontario online casinos, where regulations ensure fair play and revenue sharing with the province. Expanding poker’s reach could align it with these larger, more profitable markets.

What’s Next in Court?

As the case heads to court this fall, Ontario faces mounting scrutiny. Critics argue that the province’s ambitions clash with existing provincial gaming frameworks. Flutter Entertainment, the owner of PokerStars and FanDuel, has made its interests clear by seeking intervenor status. iGaming Ontario, the provincial agency managing online gambling, claims that allowing international players would create a more competitive market and drive gamblers away from black-market sites.

Ontario, for its part, frames the case as a legal necessity. A spokesperson for Attorney General Doug Downey states that the Criminal Code is ambiguous about the international player model and that Ontario “must get this right” to maintain a stable and lawful gambling system.

Final Thoughts

The upcoming court decision holds more than immediate monetary consequences. It could set a legal standard for how Canada addresses the relationship between regulated gambling industries and international participation. Whether Ontarians will one day sit at virtual poker tables with offshore players hangs in the balance, and so does a piece of Ontario’s gambling-generated revenue.

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