A legal dispute over Ontario’s online gaming strategy has reached the Supreme Court of Canada, as multiple provincial lottery corporations challenge plans to expand peer-to-peer play beyond provincial borders.
Four lottery bodies are now involved after Loto-Québec joined the appeal, following approval from Justice Sheilah Martin. The organization aligned with the Atlantic Lottery Corporation, British Columbia Lottery Corporation, and Manitoba Liquor and Lotteries, all part of a coalition representing six provinces.
Legal Dispute Centers on Provincial Authority
The disagreement hinges on how the Criminal Code defines the limits of provincial authority in gaming. Ontario’s Court of Appeal previously indicated that shared liquidity across borders could be lawful. However, the appealing lotteries maintain that the law restricts gaming activity to operations conducted strictly within provincial boundaries.
In a filing submitted earlier this year, the coalition argued that Ontario’s proposal “flouts” the Criminal Code. It also warned that a ruling in Ontario’s favor could open the door for other provinces to attempt similar expansions, potentially reshaping how gaming is regulated across the country.
Lottery representatives also raised concerns about operator conduct beyond Ontario’s borders. They argued: “The undisputed evidence shows that the private gambling operators with whom Ontario has already joined hands use their legal platforms in Ontario as springboards to promote illegal international websites to Canadians outside Ontario,”
Market Context and Current Limitations
At present, peer-to-peer gaming activity in Ontario remains limited. Online poker is confined to players within the province, which restricts participation and overall market impact. Recent figures show that poker generated CAD135 million in wagering handle and CAD5.6 million in operator revenue in a single month, representing only a small portion of total iGaming activity and declining year over year.
Daily fantasy sports, another format referenced in the case, does not currently operate within Ontario’s regulated market. The appeal could influence whether these segments expand under a shared liquidity framework in the future.
The earlier appellate ruling in November created the legal opening for such expansion, prompting the current challenge at the national level.
Alberta and Industry Stakeholders Enter the Debate
Alberta has been granted permission to intervene after filing a motion last month. The province plans to support Ontario’s position as it prepares to launch its regulated iGaming market on July 13, 2026.
Legal representatives for Alberta stated: “Under the iGaming Alberta Act, individuals outside of Canada are not prohibited from participating in an internet-based gaming site operated by a regulated agent of Alberta, provided that individual is permitted to do so by the laws of their jurisdiction,”
Industry stakeholders have also challenged the lotteries’ claims. Flutter said: “The appellants’ submissions build in irrelevant and unjustified allegations of illegality by Flutter and others in the industry that no court has decided and to which Flutter has had no opportunity to meaningfully respond,”
The court’s decision is expected to define how far provinces can extend online gaming beyond their borders.
Source:
“Loto-Québec joins Supreme Court appeal as poker giants call for Ontario iGaming liquidity”, canadiangamingbusiness.com, April 8, 2026
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