Three Canadian lottery corporations have asked the Supreme Court of Canada to review an Ontario Court of Appeal ruling that would allow cross-border player pooling in peer-to-peer online gaming. Manitoba Liquor and Lotteries, the British Columbia Lottery Corporation, and the Atlantic Lottery Corporation are challenging the decision, arguing it misapplies provisions of the Criminal Code.
The appeal follows a November judgment in which Ontario’s appellate court determined that the province could legally permit players in games such as online poker and paid daily fantasy sports to compete with users outside Ontario. Manitoba Liquor and Lotteries and the British Columbia Lottery Corporation filed jointly, while the Atlantic Lottery Corporation submitted a separate appeal. Ontario Attorney General Doug Downey is listed as the respondent and declined to comment.
Dispute Centers On Where Gambling Occurs
The three lottery corporations have opposed cross-border pooling since the issue first arose. Acting through the Canadian Lottery Coalition, they intervened earlier in 2024 when Ontario’s government asked the Court of Appeal to clarify whether international player connections would comply with federal law.
Ontario currently requires online poker and paid daily fantasy sports to operate on a ring-fenced basis, limiting participation to players located within the province. Ontario and several industry stakeholders argued that pooled liquidity would remain lawful if the games were conducted and managed from Ontario.
The lottery corporations and the Mohawk Council of Kahnawà:ke disagreed, maintaining that all gambling activity must take place physically inside the province. After months of deliberation, four of five judges sided with Ontario, while one judge aligned with the lotteries’ position.
Court Ruling And Appeal Timeline
In its decision, the Ontario Court of Appeal cited Criminal Code language stating that “it is lawful for the government of a province, either alone or in conjunction with the government of another province, to conduct and manage a lottery scheme in that province, or in that and the other province, in accordance with any law enacted by the legislature of that province.”
The judges acknowledged a narrower reading but concluded otherwise, writing: “The phrase ‘conduct and manage a lottery scheme in that province’ can be read narrowly to prohibit linking in-province gaming to gaming in foreign jurisdictions. However, a broader reading that permits provincial governments to enter into cooperative arrangements with foreign jurisdictions is also available. On our reading, the text favours this broader interpretation.”
The ruling was released on Nov. 12, triggering a 30-day appeal window. The Atlantic Lottery Corporation filed its notice of appeal on Dec. 10, and the Supreme Court file was opened on Dec. 18. In their submissions, the lotteries reiterated that “in that province” should mean entirely within provincial borders.
Market Interest Put On Hold
The decision prompted discussion among regulators and industry participants. iGaming Ontario President and CEO Joseph Hillier said after the ruling: “I think the opportunities could be significant,” referencing peer-to-peer poker and daily fantasy sports as areas of interest.
However, Hillier also noted that practical questions remain unresolved, including how any pooling model would operate and which jurisdictions might participate. With the Supreme Court appeal now underway and opposition from multiple provinces, any move toward cross-border or interprovincial pooling appears paused pending a final ruling.
Source:
“Canadian lotteries challenge Ontario player pooling decision in Supreme Court”, canadiangamingbusiness.com, December 23, 2025
