Four Canadian lottery corporations are now challenging Ontario’s proposed cross-border iGaming liquidity model before the Supreme Court of Canada, setting up a closely watched legal dispute over how provinces can operate online gambling under the Criminal Code.
Loto-Québec has joined the appeal alongside Atlantic Lottery Corporation, British Columbia Lottery Corporation, and Manitoba Liquor and Lotteries. Together, the groups are members of the Canadian Lottery Coalition and oversee gaming activity across six provinces. Justice Sheilah Martin approved Loto-Québec’s request to participate as an appellant after the organization filed its motion in mid-March.
The case centers on Ontario’s effort to allow players in peer-to-peer products such as online poker and daily fantasy sports to compete with participants located outside provincial borders.
Appeal Targets Ontario Liquidity Model
Ontario’s Court of Appeal ruled in November 2025 that cross-border liquidity could be lawful under the Criminal Code. That decision opened the door for Ontario to consider broader player pools for products where liquidity is important, especially poker.
The lottery coalition argues that provincial authority only applies to lottery schemes conducted “in that province,” and says Ontario’s proposed model would exceed those limits if gameplay extends beyond provincial boundaries.
A filing submitted to the Supreme Court in February by Atlantic Lottery Corporation argued that Ontario’s international liquidity concept “flouts” the Criminal Code. It also warned that future disputes could involve provinces seeking authority over gaming schemes extending across Canada.
The coalition also criticized marketing activity by Ontario-licensed private operators, claiming regulated platforms in Ontario are being used to promote international websites to residents in other provinces.
Poker Market Seen as Main Commercial Driver
The legal challenge comes as Ontario’s poker market remains relatively small compared with casino and sports betting segments.
Ontario’s February iGaming report showed poker generating CAD135 million in wagering handle and CAD5.6 million in operator revenue. Both figures declined year over year and represented only 1.6 percent of monthly handle and gross gaming revenue.
Many industry participants view shared liquidity as a potential way to expand poker traffic, improve tournament pools, and strengthen player retention by increasing available opponents.
Alberta and Industry Groups Back Ontario Position
Alberta has also entered the matter after receiving permission to intervene. The province legalized a commercial regulated iGaming market last year, with launch plans set for July 13, 2026.
Officials in Alberta and Ontario have previously indicated interest in linking peer-to-peer gaming in the future, an arrangement the Criminal Code allows if both provinces agree.
Several private-sector stakeholders are also aligned with Ontario’s position, including the Canadian Gaming Association, FanDuel, Flutter, GGPoker parent NSUS, and World Series of Poker interests.
Flutter argued in its own filing that accusations raised by the appellants were irrelevant to the legal question before the court. NSUS stated that allowing Ontario to connect with foreign jurisdictions would not prevent any other province from deciding how to regulate gaming within its own borders.
The final ruling could shape how provinces interpret gambling powers in Canada and whether future shared-liquidity agreements can develop across provincial or international markets.
Source:
Loto-Québec joins Supreme Court appeal as poker giants call for Ontario iGaming liquidity, canadiangamingbusiness.com, 8 April 2026
