Canada Supreme Court Reviews Ontario iGaming Plans

Jonathan Rodriguez

Written by: Jonathan Rodriguez

Published: Mon Oct 12, 2026, 10:00 am ET

Read Time: 4 minutes

Canada Supreme Court Reviews Ontario iGaming Plans

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The Supreme Court of Canada has scrutinized Ontario's plans to expand its regulated online gambling market internationally. During an October 7 hearing, justices examined whether provincial law permits Ontario players to compete against participants abroad.

The case could shape the future of online poker, peer-to-peer gaming, and Ontario gambling regulations. However, the court has reserved its decision, leaving the proposed international expansion on hold.

The appeal, Atlantic Lottery Corporation et al. v. Attorney General of Ontario, challenges a 2025 Ontario Court of Appeal decision. That ruling supported Ontario's interpretation of federal law, allowing the proposed international player-pooling model to proceed legally.

Atlantic Lottery Corporation Challenges Ontario's Legal Interpretation

At the center of the dispute is Section 207(1)(a) of Canada's Criminal Code. The provision allows provincial governments to conduct and manage lottery schemes within their jurisdictions.

Ontario wants to connect players on its regulated platforms with participants in other countries. This approach could expand player pools for online poker and other peer-to-peer games, potentially increasing participation and tournament opportunities.

However, Atlantic Lottery Corporation (ALC) and other provincial lottery organizations argue that Ontario's proposal stretches provincial authority beyond its legal boundaries. They challenge the Court of Appeal's reasoning that federal law permits international play because it contains no explicit prohibition.

ALC lawyer Matthew Milne-Smith directly challenged that interpretation during the Supreme Court hearing.

"The decision relied on a lack of express prohibition of international play in section 207(1)(a), and with respect, this is backwards," Milne-Smith told the court.

His argument questioned whether the absence of a specific restriction could establish legal permission. Instead, the opposing lottery corporations maintain that the legislation's requirements must determine the limits of provincial gambling authority.

The appeal follows the November 2025 Court of Appeal decision, which ruled 4-1 in Ontario's favor. Justice Katherine van Rensburg dissented, raising concerns about whether Ontario could conduct and manage a gambling scheme involving activity beyond its jurisdiction.

Justices Question Ontario's Provincial Control Argument

Ontario maintains that international player pooling would not surrender provincial oversight to foreign jurisdictions. The province argues that its regulatory agency would continue controlling the platform and deciding which operators could participate.

Representing Ontario, lawyer Ananthan Sinnadurai emphasized the province's continuing authority over its regulated market.

"We choose who we partner with. We still run the system in this province, and fundamentally we control the experience of people in Ontario, because that's the concern," Sinnadurai said.

However, Justice Malcolm Rowe challenged this reasoning, describing Ontario's explanation as "word salad." He questioned whether contractual control could satisfy the Criminal Code's requirement to conduct and manage a lottery scheme within the province.

Justice Mahmud Jamal offered a different perspective, comparing international play to a two-sided telephone call. His analogy raised the question of whether a game involving players in Ontario and abroad could be considered to take place in both locations.

These exchanges highlighted the legal tension at the hearing. Ontario argues that it would retain control over its provincial operations, while opponents contend that international participation could extend the gambling scheme beyond Ontario's legal authority.

Domestic Player Pooling Offers a Separate Path

Although international player pooling remains under review, provinces can pursue domestic arrangements to connect players across provincial borders. Ontario and Alberta have explored cooperation on online poker liquidity, offering a potential route to larger player pools within Canada.

Such domestic arrangements differ from Ontario's international proposal because they involve participants in Canadian jurisdictions. Ontario's proposed international model would also connect players with participants abroad, raising the additional question of how far provincial authority extends under federal law.

Domestic cooperation could therefore provide a separate path for expanding online poker participation while the Supreme Court considers the international model. 

However, any cross-provincial arrangement must comply with the applicable legal and regulatory requirements.

Ruling Could Affect Online Poker and Canada's Gambling Market

The Canada Supreme Court's eventual decision could have significant implications for Ontario's regulated iGaming industry. International player pooling could allow online poker players to compete against larger fields, potentially improving game availability and tournament liquidity.

Operators could also gain access to broader player pools if Ontario establishes agreements with eligible international jurisdictions. However, the extent of any expansion would depend on the court's ruling and subsequent regulatory arrangements.

The case also matters beyond Ontario. Its outcome could influence how other provinces interpret their authority under federal gambling legislation, particularly as Canada's regulated online gaming landscape evolves.

Ontario and its supporters, including Alberta and several gaming industry stakeholders, back the proposed approach. Meanwhile, ALC, British Columbia Lottery Corporation, Loto-Québec, and Manitoba Liquor and Lotteries oppose Ontario's interpretation.

For now, the proposal remains subject to legal review. The Canada Supreme Court's decision will help clarify whether Ontario can extend player participation across international borders while maintaining the provincial control required under Canadian law.

Jonathan Rodriguez
Jonathan Rodriguez

Jonathan is an avid basketball fan, and is often looking forward to the next upcoming NBA season when not checking players' stats during games. He also likes to keep his ears on the ground for the latest rumblings in the online casino industry.

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