As Ontario continues as an online gaming leader not only in Canada, but North America as a whole, other provinces are taking some differing approaches to the industry.
Officials in Alberta are looking to launch a model much like that found in Ontario, while Quebec officials are taking the opposite approach and rejecting a more open market, according to recent reports. With those efforts underway, Ontario may also be facing some headwinds as tribal leaders in the province have filed a lawsuit arguing that the entire gaming setup violates federal law.
Alberta Considers Regulating Market
Since Ontario launched a regulated online gaming model in April 2022, the province has seen considerable revenue gains and numerous operators entering the market. Other provinces, including Alberta, have also considered a similar plan.
The province currently only offers the PlayAlberta platform, but Service Alberta and Red Tape Reduction Minister Dale Nally issued a mandate in July 2023 to make the province a hub for online gaming and sports betting.
The government plans to make this happen by “working with Indigenous partners, finish developing and implementing Alberta’s online gaming strategy with a focus on responsible gaming and provincial and Indigenous revenue generation,” according to the mandate.
That includes an open approach as found in Ontario and recent reports have said that several gaming operators have expressed an interest in launching in the province of almost 4.4 million.
Quebec Rejects Calls for Open Market
On the opposite side of the Ontario and Alberta approach, officials in Quebec have skepticism about opening up the market. Reacting to proposals from the Québec Online Gaming Coalition (QOGC), a spokesperson with the Québec Finance Ministry recently told La Tribune that the province doesn’t plan to create a similar scheme as in Ontario.
Loto-Québec holds a monopoly on legal gambling in the province and that may not be changing. Quebec officials argue that the Ontario approach has created an oversaturation of gaming and gaming advertisements.
“(Ontario’s) changes may have led to overexposure to online gambling advertisements and a trivialization of gambling,” the Minister of Finance spokesperson said. “This is not what we want in Québec. Furthermore, several experts believe that with the massive arrival of mobile phones, deregulation is not desirable. This has an effect on the rise in problem gambling, particularly among young people.”
QOGC members, however, argue that Loto-Québec is simply trying to keep its monopoly status and that isn’t good for consumers. The group is made up of some of the largest operators in the industry including DraftKings, Flutter Entertainment (the company behind Paddy Power, Betfair, and PokerStars), Entertain (the company behind Ladbrokes, bwin, and PartyPoker), and others.
“The coalition wishes to work with the Québec government, local lottery corporation, and responsible gaming stakeholders to develop a transparent regulatory framework for online gaming in Québec,” the group notes. “By doing so, we wish to help foster a responsible and safe environment that protects consumers all while providing revenues to the Québec government through licensing and taxing model – similar to Ontario.”
The province presents an enticing market for many operators, with a population of 8.5 million.
Ontario Online Gaming Faces Legality Lawsuit
While other provinces consider whether to try and duplicate the success of online gaming in Ontario, that province faces a lawsuit regarding the industry in the coming weeks.
The Mohawk Council of Kahnawà:ke filed suit against iGaming Ontario and the province’s attorney general of Ontario in 2022, arguing that regulating the industry in the province was actually illegal.
The Kahnawà:ke Gaming Commission (KGC) has licensed and regulated online gaming operators since 1996 using its Mohawk Internet Technologies arm since 1999. In 2015, the tribe also launched the Mohawk Online gaming platform.
Kahnawà:ke leaders say the regulated market has adversely affected their own business in the province. The tribe believes the current iGaming Ontario model is “illegal and unconstitutional” as outlined in the lawsuit.
“It’s not our first choice,” council chief Mike Delisle Jr. told the CBC of the lawsuit. “It’s unfortunately come to the point where we feel we have no other choice but to launch this petition, trying to get the Ontario government to understand that this is serious for us.
“It’s putting in jeopardy the entirety of the jurisdiction we’ve built over the course of the last 20-plus years.”
Legal wranglings are now expected to begin in the coming weeks. The Kahnawà:ke have said that many of the operators that previously utilized the tribal group’s licensing and gaming commission have instead shifted to iGaming Ontario to meet provincial regulations. iGaming Ontario officials argue that the province’s regulated market is in line with the law.
“iGO controls the games, the money, the data, the advertising, and retains ultimate discretion over conduct and management,” the agency noted in January.
