Ontario’s International iGaming Expansion Faces Supreme Court Challenge

OTTAWA – Canada’s Supreme Court heard arguments over Ontario’s plan to let regulated iGaming customers play against users outside the country. A ruling could determine whether the province can introduce international pooled liquidity for online gambling.

The Oct. 7 hearing stems from a challenge brought by Atlantic Lottery Corporation, British Columbia Lottery Corporation, Manitoba Liquor and Lotteries Corporation and Loto-Québec. They are contesting an earlier Ontario Court of Appeal ruling that found the proposed model could operate legally under Canada’s Criminal Code.

The Supreme Court case centers on Section 207(1)(a), which allows a provincial government to conduct and manage a lottery scheme “in that province.” The dispute is over whether Ontario can satisfy that requirement while connecting local players with participants outside Canada.

Judges Question Scope of Ontario’s Control

The proposed model would allow Ontario players to participate in games and betting involving people in other countries while iGaming Ontario continues overseeing the activity available to customers ainside the province. Peer-to-peer poker and fantasy contests are among the products that could benefit from larger international player pools.

Lawyers for the provincial lottery corporations argued that Canada’s gambling prohibitions should be interpreted narrowly and that international participation falls outside the exemption granted to provinces.

“Everything that is not expressly permitted is prohibited, and both the text and the history of the relevant provisions support this conclusion.”

Matthew Milne-Smith
Counsel for Atlantic Lottery Corporation

Several Supreme Court justices questioned how Ontario could remain responsible for conducting and managing gambling when parts of the activity involve players and operators outside its territorial jurisdiction. Justice Mahmud Jamal also questioned the reasoning used by the lower court majority.

Ontario argued that the province would retain control over the gambling experience offered to Ontarians, including deciding which operators can participate and enforcing requirements on the Ontario side of the system.

Ontario Court of Appeal Approved Proposed Model

Ontario originally referred the legal question to the Court of Appeal in February 2024. In November 2025, a majority of the court concluded that the proposed model would remain lawful under the Criminal Code because Ontario would continue conducting and managing the provincial portion of the gambling system.

Justice Katherine van Rensburg dissented, concluding that the international elements would prevent Ontario from meeting the requirement that a lottery scheme be conducted and managed “in that province.” The provincial lottery corporations subsequently appealed the decision to the Supreme Court.

The proposed system would not automatically open Ontario games to players elsewhere in Canada. Participation from another province would still require an interprovincial arrangement, while the case specifically addresses connections with players outside Canada.

Ruling Could Shape Canadian Online Gambling

Ontario opened its competitive regulated iGaming market in April 2022, allowing private operators to offer products including Ontario online casinos, sports betting and poker. A 2026 survey found that 91.1% of Ontario online gamblers reported using regulated sites.

The legal question also has broader significance as Canada’s commercial iGaming landscape expands. Alberta became the second province to introduce a regulated private-operator market in July 2026.

A Supreme Court decision upholding Ontario’s position could clear a path for international liquidity arrangements within its regulated market. A reversal could prevent the proposed cross-border model from proceeding but would not undo Ontario’s existing domestic iGaming framework.

The Supreme Court did not issue a ruling following Wednesday’s hearing. Its decision is expected at a later date.

RELATED TOPICS: Regulation