Ontario Approves Cross-Border Gaming in Major Shift for Poker and DFS

Ontario’s Court of Appeal has decided that gamers in Ontario can play against people outside of Canada. The ruling, which was opposed by the lottery and monopoly holding agencies from other provinces. Of the five judges, all but one voted for allowing the provincially regulated gambling operators to allow cross country gambling.

Looking at the bigger picture, this is a massive win for DFS apps and online poker rooms. By limiting the action to the province, Ontario gamers got fewer opponents and peers to take on in the games. As a result, opportunities were slimmer, cashgames became scarcer and also the prize pools – most of which are built from entry fees – were not as desirable. That could all be set to change, and operators who didn’t provide such services could already be looking for partnerships with solutions providers to expand their offering.

Background to the Ruling

The proceedings were initiated in 2024 by the Ministry of the Attorney General, who wanted clarification on the gambling laws in Canada’s Criminal Code regarding pooling Ontario’s players against people outside Canada. The ruling, city in Section 207(1) (a) of Canada’s Criminal Code allows:

“for the government of a province, either alone or in conjunction with the government of another province, to conduct and manage a lottery scheme in that province, or in that and the other province, in accordance with any law enacted by the legislature of that province;”

The interpretation at the time was that Canadian lottery or gambling operators could manage their operations inside their authorized territories, or, in some scenarios, work across provincial lines with other regulators.

However, the latter part was widely contested by regulators and lawmakers. And the idea that Ontario online casinos and gaming operators could surpass not only provincial borders but also extend its products to bring in international players was highly contentious. That is, until Ontario’s Court of Appeal decided otherwise.

High Court Rules on Cross Country Gaming

On November 12, the Court of Appeal released its verdict, stating that Ontario operators could allow gamers to play against their international peers. The closed player pools, which were restricted to local players, also forced operators like DraftKings and FanDuel to withdraw from Ontario.

Other brands also remain limited in the market, and there was not enough of a market to tempt the operators with iGaming products, but no peer to peer or fantasy products. Up until this point, the peer poker cash games only contribute around 2% to Ontario’s entire iGaming market.

Potential Regulatory Tensions and Obstacles

This ruling will make it possible for licensed iGaming operators to connect Ontario players to their international peers, so long as the activities are regulated and handled by the iGaming Ontario licensed platforms. But this green light is not the end of the story. There are still plenty of legal roadblocks to clear

• ACGO must set clear conditions for the products, defining the scope, legal definitions, and requirements
• Extent to which Ontario licensed platforms take on international players must be determined
• Negotiations with foreign regulators on tax reporting and revenue sharing
• Technical integrations must be made to separate Ontario and international pooled player wallets
• Ontario needs to integrate tighter AML security frameworks and monitoring across borders

There are still many hurdles to overcome, and it doesn’t mean that Ontario gamers can expect to play poker against players in Brazil, or take part in US fantasy sports contests. There is also a question as to whether this category will need separate licensing and authorisations, as the market may become massive and the ACGO will have to find a system that is not vulnerable to loopholes or manipulation.

Which Gaming Products Are Affected

Nearly every iGaming operator in Ontario stands to benefit from these proceedings, from online casinos to Ontario sportsbooks, and everyone in between. Platforms that have tournaments, whether they are slots contests, NFL betting brackets, NBA survivor pool betting, or leaderboard contests for all casino gameplay, all of these have the potential to grow if there is an international market to play against.

To be clear, this won’t mean Ontario operators will get revenue from players abroad. No, but it will mean the already thriving Ontario market will have bigger opportunities, driving up engagement and activity in these products.

The platforms that revolve around peer games or contests stand to win the most from the ruling. These include:

• DFS
• Poker rooms
• Peer to peer betting exchanges
• Bingo rooms

Brands Who Could Benefit

Practically all iGaming Ontario licensed brands stand to benefit in one way or another. But the main focus will be on DFS, poker, P2P products and bingo rooms.

DFS brands like DraftKings and FanDuel are not currently available in Ontario due to the strict regulatory interpretation. However, with the ruling, they now have a reason to rethink their strategy and potentially make a comeback. Ontario poker operators like PokerStars, GGPoker, 888 and WSOP will be following the proceedings with a magnifying glass. The potential for poker in Ontario is massive, and adding international players gives greater liquidity, which can serve the market well and give Ontario players a far more masterful poker experience.

Ontario may not have many betting exchanges or peer to peer betting apps apart from STX, which has Canadian sports betting products with betting exchange trading. The P2P trading model demands more players, as this makes more possibilities for players to fill their peers’ bets, and stake predictions of their own that can be filled. If the room for the space grows, there are plenty of big name betting exchanges that could take an interest in setting up shop in Ontario.

Bingo operators, Keno and alternate peer lotto product operators will also stand to benefit from the changes. Basically, any type of online casino game that pits players against each other, has player contests, or uses prize pools from entries and lineups can benefit if Ontario rolls out new legislation on cross country gambling.

A Precedent for the Rest of Canada?

The ruling is not final, and there are plenty of issues that regulators must take into account if it does go ahead. Before any of that, there is a chance to appeal the decision to the Supreme Court of Canada. The Canadian Lottery Coalition, CLC, represents numerous gaming agencies across the other Canadian provinces, which were mostly opposed to the ruling.

Of course, on the flip side, if everything does go ahead and the Ontario operators can turn it into a success, it beckons the big ask from other provinces. In that whether or not they will consider following Ontario and opening similar gambling models for their own sectors. Alberta is on course to doing so, but big players such as British Columbia and Quebec are still sticking with their state run gambling monopolies. If all goes to plan, this could be yet another reason for those provinces, and other Canadian territories, to weigh their options and consider the advantages of following in Ontario’s footsteps.