At least four Canadian lottery corporations are appealing to the Supreme Court of Canada against Ontario’s proposal to extend peer-to-peer iGaming play beyond provincial borders.​

Last week, Justice Sheilah Martin granted Loto-Québec’s request to join the case as an appellant. The Quebec crown corporation filed its motion in mid-March, aligning with the Atlantic Lottery Corporation (ALC), British Columbia Lottery Corporation (BCLC), and Manitoba Liquor and Lotteries (MBLL). Together, these entities oversee gaming in six of Canada’s ten provinces and form the Canadian Lottery Coalition (CLC).​

The Supreme Court appeal over Ontario’s iGaming “international liquidity” plan is shaping up as a landmark case. It could reexamine how provinces interpret the Criminal Code regarding cross-border online gaming.
 

Background of the case​

The dispute stems from Ontario’s effort to allow players of peer-to-peer games like daily fantasy sports (DFS) and online poker to compete against participants outside the province. While DFS currently has no regulated presence in Ontario, online poker remains fenced within provincial boundaries, limiting its market impact.​

Ontario’s February iGaming revenue report showed poker generating CAD135 million ($97.8 million) in wagering handle and CAD5.6 million ($4.06 million) in operator revenue, representing just 1.6 per cent of total monthly handle and gross gaming revenue (GGR). Both figures were down year-over-year, as reported by several media outlets. ​

In November 2025, the Ontario Court of Appeal ruled that such cross-border liquidity could be lawful under the Criminal Code. However, the coalition of lotteries argues that the Code only authorises provinces to conduct lottery schemes “in that province.” They contend Ontario’s model would unlawfully extend play outside its jurisdiction.​
 

Supreme Court appeal​

ALC filed a factum last February on behalf of the CLC, asserting that Ontario’s plan “flouts” the Criminal Code despite the provincial court’s opinion. The filing warned that if Ontario succeeds, other provinces may attempt to claim authority over lottery schemes that reach across Canada.​The coalition also alleges that Ontario-licenced operators promote heavily in their provinces, undermining local regulators. “The undisputed evidence shows that the private gambling operators with whom Ontario has already joined hands use their legal platforms in Ontario as springboards to promote illegal international websites to Canadians outside Ontario,” the ALC argued.​
 

Alberta’s role​

With Loto-Québec now officially part of the appeal, Alberta awaits word on whether it can intervene. The province’s Attorney General filed a motion in March to join the case. Alberta legalised a commercial, regulated iGaming market last year, with a launch set for 13 July 2026.​

Ontario and Alberta have signalled interest in connecting peer-to-peer play in the future, which the Criminal Code permits if both provinces agree. The Alberta Gaming, Liquor and Cannabis Commission (AGLC), the province’s sole regulator of iGaming, was an original member of the CLC.

If allowed to intervene, Alberta plans to argue in support of Ontario, alongside industry stakeholders including the Canadian Gaming Association, FanDuel, Flutter (parent of PokerStars), GGPoker, and the owner of the World Series of Poker, NSUS.

 

 

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