Not everyone was happy with iGaming Ontario
While changes to the iGaming market in Ontario were being heralded as a success by the province and commercial gambling operators alike, there has been a battle going on in the background. Not everyone was happy about the creation of iGaming Ontario as the licensee and regulator for online casino games and sports betting.
MCK took the provincial government to court
The Mohawk Council of Kahnawà:ke (MCK) had argued that the 'unilateral changes' by Ontario's provincial government were illegal and unconstitutional and claimed the province had incorrectly reinterpreted Section 2017 (1) of the Criminal Code, which had allowed provinces to regulate single sports betting by letting operators manage themselves. They decided to file charges in an attempt to be able to continue providing online gambling services without having to apply for an iGaming Ontario license. At the time, Elected Council Chief Ratsenhaienhs Mike Delisle Jr claimed
"It's not our first choice. 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."
Court ruled in favor of iGaming Ontario
The Ontario Superior Court dismissed the application by the Mohawk Council of Kahnawà:ke (MCK), ruling that iGaming Ontario is the "operating mind" running Ontario's competitive, commercial online gambling market in accordance with management and conduct requirements of the Criminal Code. The Quebec-based Mohawk Council of Kahnawà:ke (MCK) has said it will not appeal the Court's decision to dismiss its challenge and has also said it will not apply for a license.
Quebec-based MCK had expressed concerns before and after the changes to the regulatory system launched. The Kahnawà:ke Gaming Commission (KGC) has been licensing online gaming operators since 1996, with Mohawk Internet Technologies, a wholly owned subsidiary of MCK, hosting online gaming since 1999. In 2015, MCK created the gaming operator Mohawk Online, contributing between $30 and $40 million to the community's coffers.
MCK claimed that the system shuts Mohawk Online out of the Ontario online gambling market while undermining its online gambling expertise. It expressed concern that iGaming Ontario would cause significant damage to the community's economy, claiming it "put in jeopardy" the entirety of the jurisdiction they had built over the course of the last 20-plus years
iGaming Ontario is a subsidiary of the Alcohol and Gaming Commission of Ontario. It came into being as the operator of the new online gaming market in April 2024. Ontario was the first province in Canada to launch a commercialized market, although others are expected to follow in its footsteps, given its success. Ontario has 69 regulated online casinos including big-name, international operators covering every aspect of igaming from slot machines and roulette to dice and live dealer games.
Ontario's Supreme Court ruled that iGaming Ontario operates in accordance with the Criminal Code. The regulatory body welcomed the decision regarding how it conducts and manages igaming. In a press statement, the Executive Director of iGaming Ontario, Martha Otton, said
"We have always been confident in our model and are pleased that the court has ruled in our favour and that Ontarians can continue to play with confidence in our regulated igaming market,"
She went on to say that
"Ontario's model meets the requirements and contributes to the public good by protecting players, their data and their funds while helping to fund priority public services in Ontario and bringing well-paid, high-tech jobs and economic development to Ontario".
MCK say they won't appeal and won't pay for a permit
The Mohawks of Kahnawà:ke claimed they had an "Aboriginal right" to conduct and regulate gambling community gambling. They argued that the federal legislation that sanctioned single-event sports betting ultimately led to the creation of Ontario's betting market and damaged the Indigenous people of Canada by changing the betting and iGaming landscape. They said being forced to pay licensing and registration fees to operate in Ontario violated its former legal jurisdiction over gaming.
After the ruling, current MCK Chief Cody Diabo claimed,
"As far as having to pay a provincial government some type of fee, it's out of the question really puts us in a difficult situation for us to be operating. It's unfortunate because the Kahnawake Gaming Commission is renowned globally, but we can't even operate basically in our own backyard because of provisions in C-218."
Big business
While gambling is fun, it is also a serious business and a very profitable one. Ontario's 2024 budget showed that iGaming Ontario's activities had generated $87 million in net income for the provincial government between 2022 and 2023. That was for the first 12-month operation period, and all the indicators show that the market is only in its infancy.
Canadians are keen gamblers, with over six in ten citizens saying they gambled in the previous month and around a third of Ontarians said they gambled online. In addition to creating a lucrative revenue stream, Ontario went down the regulated market route to better protect its residents and tourists from gambling harms by moving people away from unregulated offshore sites. The move has been a success, and the budget indicates that the province will see revenues of $162 million in the second fiscal year. This is predicted to rise to $174 million by the end of this year.
Casino games, including bingo and online slots, are the largest sector, accounting for around 82% of all wagering. Blackjack is the most popular table game, followed by roulette and baccarat. We often think of poker as the big casino game, but iGaming Ontario reported that peer-to-peer poker is its smallest revenue stream. Maybe that is one game people still prefer to play in person.
