Canada's Supreme Court to Decide on Cross-Border iGaming Expansion

A legal decision of historic proportions is looming in Canada. The country's Supreme Court will clarify whether the province of Ontario is allowed to open its digital borders for online gamblers. At the heart of the matter is whether online poker and daily fantasy sports (DFS) participants in Ontario can compete against players from other countries or provinces. While Ontario and Alberta are pushing for expansion, other provinces are mounting fierce resistance, fearing that such an opening violates national criminal law.

The legal dispute has now reached the highest instance after the Ontario Court of Appeal already ruled in favor of the province in 2024. At that time, four out of five judges found that the physical presence of all players within provincial borders was not strictly necessary, as long as Ontario maintained control over the gaming activity. This interpretation is now being challenged by the state-owned lottery corporations of other provinces defending the monopoly model. For the gambling industry, much is at stake, as pooling player groups would massively increase the attractiveness and liquidity of platforms.

Numbers and facts

The hearing on October 7 will show how stable the Canadian model of market regulation is. Ontario and Alberta are currently the only two provinces that have introduced a system with multiple licenses for private operators. Ontario launched its commercial market in April 2022, while Alberta followed suit in July 2026. The initiative is supported by industry giants such as Flutter Entertainment, the parent company of PokerStars and FanDuel, as well as the NSUS Group, which includes GGPoker. The Canadian Gaming Association (CGA) also sides with Ontario.

On the opposing side is an alliance of state-owned corporations: Loto-Québec, the British Columbia Lottery Corporation (BCLC), the Atlantic Lottery Corporation, and Manitoba Liquor and Lotteries. These companies argue that cross-border gaming would mean Ontario is conducting gambling outside its jurisdiction, which is inadmissible under the Criminal Code. Alberta, on the other hand, sees a positive ruling as a huge boost for its fledgling regulated market. Mickey Amery, Alberta's Attorney General, emphasized the case's importance for the future of competition.

"A positive outcome would carry strong weight for its newly regulated iGaming market." - Mickey Amery, Attorney General of Alberta

Background

The legal uncertainty stems from the interpretation of the Canadian Criminal Code. Previously, many authorities assumed that gambling offerings must remain strictly within provincial borders. However, the Ontario government submitted a reference question to the courts to create legal clarity for peer-to-peer games. If players in Ontario are only allowed to play against others in Ontario, it significantly limits prize pools and game speed. This often drives users to illegal offshore providers operating globally. Proponents of market opening argue that regulation and hosting still take place in Ontario, satisfying the legal requirement for provincial oversight.

The Court of Appeal judges followed this logic in the past. They argued that technology allows for oversight to be guaranteed even if the opponent sits in London or New York. However, the appellants from other provinces see this as a dangerous precedent that could herald the end of provincial sovereignty in the gambling sector. Interestingly, the Mohawk Council of Kahnawà:ke, which originally also filed against the plans, withdrew its appeal in June.

Why it matters for German players

For German players, this case has an indirect but important signaling effect. In Germany, the Interstate Treaty on Gambling 2021 (GlüStV 2021) is the decisive legal basis. Similar to Canada, there are strict rules for participation here. For example, online poker is permitted in Germany, but providers must ensure that strict German rules, such as the monthly deposit limit of 1,000 euros and the stake limit per spin, are observed. The Joint Gambling Authority of the States (GGL) monitors this via systems like LUGAS.

A ruling in Canada that legitimizes cross-border play under strict supervision could serve as an argument for international providers fighting for more open markets in Europe as well. Nevertheless, Germany remains on its special path: Anyone wishing to play safely here should exclusively use platforms on the GGL whitelist. Providers with licenses from Malta or Curacao do not offer the protection guaranteed by German law through the connection to the OASIS exclusion database. A softening of borders, as Ontario seeks, is currently not in sight in Germany, as player protection here provides for a territorial limitation of provider obligations.

What it means for GGL-licensed casinos

German casinos with a GGL license do not have to worry about a sudden market opening for now. The regulatory hurdles in Germany are significantly higher compared to Canada. While Ontario is trying to become more attractive through liquidity, Germany focuses on restrictive control. For licensed operators, however, the Canadian case means that the global discussion about the usefulness of closed markets ("ring-fencing") is increasing. Should the Supreme Court in Canada decide that control is more important than location, this could long-term increase pressure on European regulatory authorities to rethink cross-border jackpots or poker networks.