Future of DFS and Online Poker in Ontario Hangs in the Balance

In August, Ontario’s Premier Doug Ford and his government were searching for a precedent-setting court ruling on whether the province’s online gaming platforms could allow residents to engage in play with international gamblers.

The legal move that was initiated by an order-in-council from Ford’s cabinet belonged to a case that was set to be heard in a Toronto courtroom this fall. 

Fast forward to now, the Court of Appeal for Ontario has recently heard arguments on whether gamblers in the province should be allowed to participate in peer-to-peer games, including daily fantasy sports (DFS) and online poker tournaments with players from outside Ontario without violating the Criminal Code. 

Over the course of three days, representatives from the Ontario Attorney General’s office, the Canadian Gaming Association, a number of gaming corporations, the Canadian Lottery Coalition (CLC), and the Mohawk Council of Kahnawà:ke (MCK) all presented their cases in front of a panel made of five judges.

The decision is still pending and “it may be some time” until it becomes available, as noted by a court spokesperson.

Current State of Things

Currently, gambling sites licensed by the Alcohol and Gaming Commission of Ontario (AGCO) are only allowed to accept wagers from Ontario residents. 

When the province launched its regulated iGaming market in April 2022, operators were given a choice: to create Ontario-only DFS platforms or cease offering these contests within the province altogether. 

Companies like DraftKings opted to shut down DFS contests in Ontario due to these restrictions.

The Ontario Attorney General argued in favor of allowing licensed operators to connect Ontario-based players with those in other jurisdictions, as long as the provincial regulator would oversee the respective activities and make sure they complied with international regulators. 

Proponents claim this approach could draw players away from unregulated gray-market platforms, offering a safer and more competitive gaming environment.

However, the CLC and MCK both decided to oppose the proposal, expressing concern over its possible consequences and broader implications. 

The MCK has previously challenged Ontario’s online gaming framework in court. However, their application was dismissed by the Ontario Superior Court last spring.

Regulation in Ontario is currently managed by iGaming Ontario (iGO) in collaboration with the AGCO and the provincial government. 

iGO’s responsibility is to ensure consumer protection, promote responsible gambling, and provide a rich assortment of gaming options. 

Recently, it was announced that iGO would switch to an independent agency under the iGaming Ontario Act, set to take effect in 2025. 

This shift would further separate iGO from the provincial lottery corporation and add a fresh layer of complexity to the already complex regulatory framework.

Exactly how this independent structure will interact with potential inter-provincial agreements for DFS and online poker, remains to be seen.