Supreme Court Hears Atlantic Lotto Vs Ontario iGaming Case
Canada's Supreme Court heard oral arguments on October 9 in a case that pits four provincial lottery corporations against Ontario's plan to let its regulated online gambling market pool players with operators outside Canada.
Atlantic Lottery Corporation, British Columbia Lottery Corporation, Manitoba Liquor and Lotteries Corporation and Loto-Québec are appealing a 2025 Ontario Court of Appeal reference ruling that found Ontario's proposed "international play" model would remain lawful under the Criminal Code.
The case, filed as a reference by Ontario's government in 2024, asks whether residents of Ontario's iGaming Ontario-regulated market can legally be pooled into games and betting with players outside the country.
What The Provinces Are Arguing
The appellant lottery corporations argue that section 207(1)(a) of the Criminal Code requires a provincial lottery scheme to be conducted and managed entirely within that province's borders, relying on the Supreme Court's prior ruling in Reference re Earth Future Lottery.
Their factum states that Ontario's privately-run operators already direct bettors outside Ontario to "International Sites" that are unlawful elsewhere in Canada, and that linking Ontario's regulated pool to international liquidity would deepen that spillover.
In dissent at the Court of Appeal, Justice van Rensburg had agreed with that reading and would have found the proposed model unlawful.
Ontario's Attorney General counters that the province would not be conducting or managing a lottery scheme outside its own territory. iGaming Ontario, the provincial regulator, argues it only enters standardized agreements with private operators and that individuals outside Ontario would not be permitted to join either the provincial or linked international pools, meaning the Criminal Code's territorial restriction is not engaged.
Why Other Provinces Are Watching Closely
The other three lottery corporations, which run their own geo-blocked single-province platforms such as BC's PlayNow and Nova Scotia's ALC.ca, say a ruling for Ontario would let one province's regulator effectively operate beyond its own borders by tapping shared, larger prize pools, undermining the jurisdiction smaller markets rely on to keep gambling revenue within their own treasuries.
The Supreme Court has not indicated when it will issue its decision. The ruling will also be closely watched in Alberta, which opened its own privatized iGaming market in July and could itself seek access to shared liquidity depending on the outcome.
