Ontario Court Upholds iGaming Ontario’s Online Gaming Model

The Ontario Superior Court of Justice has rejected the Mohawk Council of Kahnawà:ke’s (MCK) challenge against Ontario’s online gaming framework. The court’s decision upholds the province’s regulatory approach, which allows for a robust online gaming industry.

In Ontario, iGaming Ontario (iGO) collaborates with the Alcohol and Gaming Commission of Ontario (AGCO) and the provincial government to oversee the industry. Their goals include consumer protection, responsible gambling, and expanding digital gaming options.

To operate in Ontario, gaming operators must first be ed with the AGCO. Following this, they must enter into an operating agreement with iGO. Once these steps are completed, iGaming Ontario conducts and manages the industry’s operations within the province.

MCK has been a staunch critic of Bill C-218, which legalized new forms of sports betting in Canada as of June 2021. The council argued that Ontario’s new gaming management system is both illegal and unconstitutional.

However, the Ontario Superior Court ruled on Monday that iGaming Ontario’s model complies with the Criminal Code.

“We have always been confident in our model and are pleased that the court has ruled in our favor and that Ontarians can continue to play with confidence in our regulated igaming market,” stated Martha Otton, Executive Director of iGaming Ontario.

She further emphasized, “Ontario’s model meets the requirements and contributes to the public good by protecting players, their data, and their funds, while helping to fund priority public services in Ontario and bringing well-paid high-tech jobs and economic development to Ontario.”

MCK’s Arguments and the Court’s Ruling

MCK’s legal argument was that iGaming Ontario was not genuinely “conducting or managing” the gaming activities taking place on private operators’ platforms. Instead, they claimed iGO was merely allowing operators to run their businesses independently, with a share of the revenue directed to the provincial government.

For over 25 years, the Mohawk Council of Kahnawàke has been involved in the online gaming industry, licensing operators on behalf of the Mohawk community. MCK contended that Ontario’s new regulatory model overlooked their long-standing expertise and threatened significant revenue losses for Kahnawake.

The court’s judgment stated, “[iGaming Ontario] retains a high degree of control over the operators in a wide array of the igaming scheme’s aspects. These are markers of who is in control of the igaming scheme and who is its operating mind. That operating mind is iGO.”

Implications for Ontario and Kahnawàke

The court’s decision confirms that iGaming Ontario maintains sufficient control over the online gaming industry to comply with legal requirements. This outcome allows Ontario to continue offering a regulated and secure online gaming environment.

The ruling also implies that the regulatory model will continue to bring economic benefits to Ontario, including job creation and funding for public services, while ensuring consumer protections are upheld.

Meanwhile, the Mohawk Council of Kahnawà:ke must now navigate the implications of this decision for their community and online gaming operations. The court’s decision underscores the importance of regulatory oversight in maintaining a fair and controlled gaming industry in Ontario.

Source:

“Court Decision Upholds iGaming Ontario’s Model”, igamingontario.ca, May 13, 2024.