A ruling currently being considered by the Ontario Court of Appeal in Canada is undoubtedly being watched closely south of the border. That’s because it could wind up making a major impact on the online gambling industry across North America.
When the Canadian province launched legal and regulated sports betting and online casino gambling in 2022, Ontario implemented the same rules as are prevalent in every US state in which online gambling is currently legal and regulated.
Those rules prohibit anyone from gambling online outside of the state in which they have an account. Thus, if your account is with a New Jersey betting site, you may only gamble online while physically situated within New Jersey state lines.
Depending upon which way the Ontario Court of Appeal ruling goes, a precedent could be set that would possibly change that status.
In February, the Ontario government filed a reference with the provincial Court of Appeal asking for a ruling on the following question:
“Would legal online gaming and sports betting remain lawful under the Criminal Code if its users were permitted to participate in games and betting involving individuals outside of Canada as described in the attached Schedule? If not, to what extent?”
On the surface, this ruling is designed to affect online poker and daily fantasy sports. There’s currently no online poker in Ontario, because the pools with Ontario-only players simply don’t make it economically viable.
Likewise, FanDuel and DraftKings, the major players in the DFS industry, pulled their operations out of Ontario in 2022 for the same reason.
Could Sports Betting And Casino Gambling Be On The Table?
While the objective of this appeal wasn’t specifically set as creating an opportunity to expand online sports betting and casino gambling beyond the borders of Ontario, language in the appeal makes it certainly seem like a possible outcome.
“The question presented in this Reference is whether online gambling conducted within Ontario in accordance with an exception to criminal liability in subsection 207(1)(a) of the Criminal Code 1 would remain legal if such gambling also involved players participating from outside of Canada,” reads the appeal.
“Although Part VII of the Criminal Code broadly prohibits gambling and betting, subsection 207(1)(a) authorizes the provinces to conduct and manage gambling within a particular province.”
Currently, Ontario is the only Canadian province offering online sports betting and casino options from private operators. Canada’s other provinces only offer online sports betting and casino gambling through government-run operations. Those sites are putting forth their opposition to any change in the Ontario law, feeling it will cost them customers in their own province.
The Ontario Court of Appeal will allow both sides to make their case during hearings from Nov. 26-28 before rendering a decision.
What Could This Mean To US Online Gambling?
The world of law loves legal precedents. Ontario could be setting one that would possess the potential to rock the entire North American online betting industry.
If the Court of Appeal rules in favor of the Ontario government and allows the province to accept online bettors from elsewhere, it certainly could have ramifications across the border.
Could Ontario Ruling Allow Texans to Play Online Casinos in NJ?
With major US states such as Texas and California still absent of any form of legalized online gambling, you’d have to think it would be very tempting for other states to pursue the opportunity to offer people in those states the chance to gamble online through sites in their state.
If the Ontario government gains a favorable ruling, there is going to be a legal precedent on the books making that possibility a reality.
Could it potentially happen that people located in Texas, California, or New York might be able to play online casino games in NJ? How likely do you think this is?
