Ontario’s win in court could bolster the legal gambling market in the province for games, such as poker and daily fantasy sports, which benefit from having more players involved.Brandon Dill/The Associated Press
Ontario Premier Doug Ford on Wednesday scored a legal victory in his government’s push to allow internet gamblers in the province to bet in games with players outside of Canada.
In early 2024, the government asked the province’s top court for an interpretation of the Criminal Code on whether bettors in Ontario were allowed to play in online games with players from outside the country.
On Wednesday, in a 4-1 decision written by Chief Justice Michael Tulloch, the Ontario Court of Appeal answer was yes.
Internet gambling in Ontario, such as poker and daily fantasy sports, has been restricted to people in the province only, limiting the number of players. The court ruling paves the way for the regulated Ontario market to allow players in the province to join peer-to-peer games with players outside Canada.
Chief Justice Tulloch highlighted the value of bolstering the regulated online gambling market in Ontario by making it more attractive to players in the province. A study this year showed that about four in five players in Ontario use regulated sites, meaning about 20 per cent of people gamble outside the regulated system.
“Allowing Ontario to regulate players within its borders who wish to play online games against players outside Canada advances public safety by bringing such gaming under protective regulation, thereby reducing such risks as fraud and addiction,” Chief Justice Tulloch wrote.
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Chief Justice Tulloch wrote that the ruling is rooted in a statutory interpretation of the Criminal Code and based on that work, “a majority of the court has concluded that online gaming and sports betting would remain lawful” under Ontario’s proposal.
First, however, there could be requests for an appeal to the Supreme Court of Canada. All other provinces, except for Alberta and Quebec, had opposed Ontario’s plan at the Ontario Court of Appeal. An appeal request to the Supreme Court must be filed within 60 days.
The seven opposing provinces argued the plan could increase illegal online gambling in their jurisdictions, attracting players in their provinces to sites beyond their control. The opposing provinces in court filings called Ontario’s legal arguments “profoundly misguided” and claimed that “Ontario’s proposed scheme involves joining hands” with illegal gambling operators.
The Canadian Lottery Coalition, which represents the seven opposing provinces, on Wednesday didn’t answer the question whether there would be an appeal to the Supreme Court. The coalition said it is reviewing the ruling.
Ontario’s goal was to expand its market and revenue by attracting more gamblers in the province to online games that feature more players. The province established iGaming Ontario in 2021. It oversees internet gambling offered to people by private companies, from whom iGaming receives a share of revenue, and pays out its net income to the province.
“It’s a good decision for Ontarians and consumer choice and for regulated online gaming,” said lawyer Adam Goldenberg, a lawyer at McCarthy Tétrault who represented an intervener in the case, the Canadian Gaming Association.
Ontario’s Ministry of the Attorney-General said it cannot provide comment on a court matter that remains within the appeal period.
Ontario government revenue from iGaming is forecast at $253-million in 2025-26, according to last week’s budget update. That’s roughly triple the revenue of three years ago. This is at a time when revenue for Ontario Lottery and Gaming Corp., the long established Crown corporation that runs lotteries and casinos, is generally flat at around $2.4-billion over the past several years.
Revenue from iGaming remains tiny in the overall picture: Ontario’s total budget revenue in 2025-26 is estimated at $223-billion.
The Ontario appeal court decision is a landmark ruling in the area of gambling, said Cameron MacDonald, a lawyer at Borden Ladner Gervais. The firm represented NSUS Group, an online poker company and an intervener in the case.
“It’s a big win for Ontario,” said Mr. MacDonald, who was not directly involved in the case. “It makes daily fantasy sports and poker more viable.”