The Supreme Court of Canada has heard competing arguments over Ontario’s proposal to connect its regulated peer-to-peer gambling market with players outside Canada. During the October 7 hearing, judges questioned how provincial control would work when participants and gambling businesses operate across international borders.

The court reserved judgment after hearing the appeal. It issued no ruling on whether Ontario’s proposed arrangement complies with the Criminal Code, leaving the legal question unresolved.

The proceedings follow a November 2025 Ontario Court of Appeal opinion that supported the model by a four-to-one majority. Provincial lottery corporations subsequently challenged that conclusion, bringing the dispute over international player pools before Canada’s highest court.

Provincial Lotteries Challenge the Scope of Ontario’s Powers

The appellants comprise Atlantic Lottery Corporation, British Columbia Lottery Corporation, Manitoba Liquor and Lotteries, and Loto-Québec. Their challenge to Ontario’s cross-border poker plan centres on the territorial limits of provincial gambling authority.

Federal legislation permits provincial governments to conduct and manage lottery schemes within their provinces. The parties disagree over whether that authority allows Ontario to connect its local gambling system with international player pools.

Counsel for the lotteries argued that the Court of Appeal placed too much weight on the absence of an explicit prohibition against international participation. They maintained that the legislation requires express permission for gambling activity.

The appeal also raises questions about the practical reach of Ontario’s oversight. Judges examined how the province could enforce its requirements when a shared game includes participants beyond its borders.

Justice Katherine van Rensburg had raised a related concern in her dissent at the Court of Appeal. She concluded that Ontario would not conduct and manage all relevant elements of the proposed arrangement.

Ontario Defends Its Control Over Local Play

Ontario’s position rests on its continued responsibility for gambling activity within the province. Its lawyers argued that linking local players with international participants would preserve provincial control over the experience offered to Ontario residents.

A representative described that responsibility during the hearing: “fundamentally we control the experience of people in Ontario, because that’s the concern.”

Under the proposed structure, Ontario would oversee activity on its participating licensed platforms. Players abroad would remain subject to the rules applicable in their own jurisdictions, with agreements establishing the terms of shared participation.

The proceedings also included submissions from the Canadian Gaming Association and major poker businesses. Flutter Entertainment and NSUS Group participated as interveners, alongside Alberta’s attorney general.

The Supreme Court granted those interveners limited opportunities to present arguments. Its procedural orders prevented them from introducing new issues or supplementing the evidentiary record.

Larger Player Pools Remain a Pending Proposal

International pooling matters particularly for online poker and daily fantasy sports, where participation depends on the availability of other players. Ontario’s current regulated poker market restricts players to competing against others located within the province.

Connecting those pools internationally could broaden the available competition and tournament participation. The Supreme Court must first resolve whether the proposed model falls within the federal exemption for provincially managed gambling.

Cooperation between Canadian provinces presents a separate route. Consenting provinces can enter agreements to share peer-to-peer gaming participation, and Ontario and Alberta officials have discussed such an arrangement.

That potential cooperation adds context to Alberta’s involvement in the liquidity case. The international proposal remains subject to the Supreme Court’s eventual decision.

Source:

Canada’s Supreme Court hears arguments for and against Ontario iGaming international expansion, canadiangamingbusiness.com, October 8, 2026.