It’s important that we get this right to provide the most legal certainty to operators and players as this new industry grows in Ontario
Ontario just wants to know what the rules are.
Seven months before AG Doug Downey is scheduled to go before the Court of Appeal of Ontario to ask if the province can rejoin the international marketplace for real money online poker, his spokesman told pokerfuse in an exclusive that government regulators need clarity from Ontario’s highest court so its regulated igaming market can continue to grow.
At issue is the federal Criminal Code, which is ambiguous when it comes to whether Ontario can share liquidity with other markets. Two years ago, regulators compelled poker operators like PokerStars and GGPoker to exit the gray market before launching in the province’s regulated space. Now, the province said it wants to change course.
That said, a positive ruling would benefit some, but not all, operators currently deployed with Ontario online poker apps. We’ll explain later.
Clarity Would Help Ontario Grow Its Market
In a statement, Jack Fazzari, senior communications adviser to Ontario AG Doug Downey, said iGaming Ontario (iGO) is particularly interested in how the Court of Appeal of Ontario will rule. Arguments are scheduled to be heard from November 26 to 28 at the court in Toronto.
“The Ontario government is leading the way in Canada through its establishment of an online gaming market conducted and managed by the province, through iGO, that protects consumers and sets clear rules,” Fazzari told pokerfuse. “However, the federal Criminal Code is not sufficiently clear on whether Ontarians can participate in online gaming with players in other countries through provincial lottery initiatives.”
An igaming model that allows Ontarians to participate in games with players in other countries would support the growth of a legal igaming industry
“Our government made the decision to ask the court for an opinion on whether Ontario’s igaming model could legally allow people physically located in Ontario to participate in sports betting and games with players located outside Canada,” he added.
Fazzari explained that Ontario law includes a provision that allows the government to ask the court for an advisory opinion. The act of doing so is called “bringing a reference,” he said.
“Bringing a reference allows us to get clarity on whether an igaming model that permits international play would be lawful. A reference allows us to ask for an opinion on this issue upfront.
“It’s important that we get this right to provide the most legal certainty to operators and players as this new industry grows in Ontario. An igaming model that allows Ontarians to participate in games with players in other countries would support the growth of a legal igaming industry in Ontario while effectively protecting consumers and providing them with more choice.”
Fazzari declined to speculate on how the court would rule, how quickly it could reach a decision, or whether Downey would push for international liquidity (versus a closed Canada network) in the event of a favorable ruling.
“As this matter is before the court, it would be inappropriate to comment further,” he said.
Ruling Would Benefit Some Operators, Not All
Ontario launched its regulated space for real money online poker on April 4, 2022. Before the provincial market launched, it was understood that it would be segregated, at least initially.
At the time, iGO was singing a different tune. They put a digital wall around Ontario’s online poker players under the premise of “rigorous standards of game and operator integrity, fairness, player protections, and social responsibility, allowing all players to play with confidence,” iGO Executive Director Martha Otton was quoted on January 28, 2022.
Two years later, apparently satisfied that its aforementioned protections have taken hold, the province aims to share liquidity with other regulated markets. The most likely scenario at this early stage (and if the court allows it) would have Ontario share liquidity with regulated European markets, including Belgium, Denmark, Germany, the Netherlands, Sweden, and the UK.
A court ruling in favor of Ontario rejoining the international market would benefit some operators, but not others. The reasons for this are varied.
GGPoker, the current market leader, is on the record saying it lobbied specifically for this change. The site has the largest player pool internationally, and operates in no other segregated markets. PokerStars would also benefit, though may struggle to keep up with GGPoker in an international liquidity setting.
Smaller operators would broadly benefit, like 888 and partypoker, who could connect their much smaller Ontario operations with their dot-com player pools, benefiting both. BetMGM would uniquely suffer the greatest, as it has no presence outside of Ontario and US regulated markets.
Who Benefits if Ontario Rejoins the International Market?
| Benefit? | Reason | |
|---|---|---|
| 888poker, Bwin Poker, Partypoker | 😃 Yes | Have struggled (in varying degrees) to be competitive, would get boost by connecting with operations in Europe. |
| BetMGM | ☹️ No | Doesn’t have any poker rooms to connect with internationally. |
| GGPoker/WSOP | 😃 Yes | Ontario is the only segregated market for GGPoker. |
| Online Poker Industry | 😃 Yes | Ontario would demonstrate a path toward rejoining international player pools. |
| Ontario | 😃 Yes | Shared liquidity creates bigger prizes, which means more tax revenue for the provincial government. |
| Operators Not in Ontario | 😃 Yes | Operators that weren’t initially interested in Ontario because it was segregated would presumably be drawn to the province once it rejoins the international market. |
| PokerStars | 🤔 Mix | Would benefit because it has operations in Europe, but downside is increased competition in Ontario. |
