GAMING AND BETTING - Lotteries - Sports betting - Online gambling and lotteries

Law360 Canada ( January 15, 2026, 9:36 AM EST) -- Reference by the Lieutenant Governor in Council of Ontario. The reference asked whether legal online gaming and sports betting would remain lawful under the Criminal Code (Code) if users in Ontario were permitted to participate in games and betting involving individuals outside of Canada, as described in the Proposed Model. The Attorney General of Ontario (AGO) argued that the Proposed Model, which would allow Ontario players to engage in peer-to-peer games with international players via regulated platforms, remained lawful under s. 207(1)(a) of the Criminal Code. The AGO submitted that the phrase “in that province” should be interpreted to permit international linkages, either through a real and substantial connection (RSC) test or by viewing the Ontario and international components as distinct but interacting lottery schemes. Supporting interveners (Flutter, NSUS, Gaming Association) endorsed this view, emphasizing technological evolution, regulatory safeguards, and the benefits of steering players away from unregulated offshore sites. Opposing interveners (Lottery Coalition and Mohawk Council) argued that s. 207(1)(a) required all participants in a provincially managed lottery scheme to be physically located in the province, relying on the Supreme Court’s decision in Reference Re Earth Future Lottery (Earth Future) and asserting that the Proposed Model would contravene the Code’s territorial limitations and prohibitions on foreign lotteries. The AGO and supporting interveners contended that Earth Future was distinguishable and not determinative, and that a modern, purposive interpretation of s. 207(1)(a) supported the lawfulness of the Proposed Model....
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