Ontario court permits operators to offer peer-to-peer gaming with players outside of Canada
Following a decision by the Court of Appeal for Ontario, residents in the province can now play peer-to-peer games with people outside of Canada on igaming sites.
The ruling opens the door for Ontario players to join global pools in online poker and daily fantasy sports, which had previously been restricted to avoid cross-border play.
Four judges backed the decision, while one ruled against it.
Chief Justice Michael Tulloch wrote that the decision was based on the court’s interpretation of the criminal code, writing, “a majority of the court has concluded that online gaming and sports betting would remain lawful” under Ontario’s proposed model.
Online operators argued that, prior to the ruling, residents were using offshore sites to access higher-stakes games. Now, they argue, it will bring back gamblers to the regulated market.
However, lottery and gaming agencies in British Columbia, Saskatchewan, Manitoba, and the Atlantic provinces opposed the plan, warning it could worsen illegal gambling activity in their regions.
Their coalition told CBC that it was “encouraged” that the court recognized players cannot take part in cross-border games without provincial agreements.
Toronto gaming lawyer Don Bourgeois said an appeal to the Supreme Court of Canada was possible, while Andrew Kim, an assistant professor at Toronto Metropolitan University, warned of the risks associated with higher engagement.
Meanwhile, online gaming supplier Playson expanded into Ontario by partnering with PointsBet last month.
Charlotte Capewell brings her passion for storytelling and expertise in writing, researching, and the gambling industry to every article she writes. Her specialties include the US gambling industry, regulator legislation, igaming, and more.
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The Backstory
Why the ruling matters now
Ontario’s decision to permit peer-to-peer play across borders lands at a pivotal moment for the province’s maturing igaming market. Player spend hit new highs late last year, and operators and suppliers have been racing to plant flags in Canada’s largest regulated jurisdiction. The court’s move clears a path for online poker and daily fantasy sports to tap into larger liquidity pools, a change that could reshape product offerings, pricing and player behavior. It also intensifies a policy split with other provinces that worry expanded cross-border play could spur gray-market activity outside Ontario’s ring-fenced system.
The stakes are clear in the numbers. Ontario players spent a record CA$22.7 billion on igaming in the third quarter of 2024, up 32 percent year over year and 22 percent from the prior quarter, according to iGaming Ontario’s latest report. Online casinos drove most of the growth, while peer-to-peer poker spending declined 3 percent. By opening access to global pools, the ruling aims directly at that soft spot. If liquidity improves and engagement rises, poker and fantasy could begin to close the gap with casino and sports products. That shift would reverberate through operator economics and responsible gaming strategies.
Inside the court’s interpretation
The Court of Appeal’s majority read of the Criminal Code anchors the policy change. The court concluded that Ontario’s proposed model keeps online gaming lawful when structured through the provincial framework. The decision, detailed in public records, is accessible via the court’s decision archive and supporting record. The majority’s interpretation turns on how Ontario authorizes and oversees online play, including connections to out-of-province participants in peer-to-peer formats.
The ruling does not end the debate. A dissent outlined legal and policy risks, and allied lottery and gaming agencies from British Columbia, Saskatchewan, Manitoba and the Atlantic provinces have argued that cross-border play could undermine enforcement in their jurisdictions. The court noted the importance of provincial agreements for any participation that implicates more than one province. That nuance gives critics a lever and creates a roadmap for interprovincial compacts if policymakers choose to pursue them. A potential appeal to the Supreme Court of Canada remains a possibility, which keeps regulatory uncertainty in play even as operators begin to adjust their offerings.
Demand was already building
Ontario’s market has expanded rapidly since regulation began in 2022. The province generated CA$2.4 billion in gross revenue in its second year and CA$3.2 billion in its third, a 32 percent annual increase, per iGaming Ontario. The third-quarter spending record underscores how quickly players have adopted regulated options. Casino products led the surge with CA$18.9 billion in handle, up 38 percent from a year earlier. Sports betting grew 10 percent to CA$3.4 billion. Poker lagged. The new legal framework targets that weakness by letting Ontario sites tap larger peer-to-peer networks that can support higher stakes, more tables and faster game discovery.
The market’s normalization also coincided with a governance shift. The partnership model between iGaming Ontario and the Alcohol and Gaming Commission of Ontario was terminated by Bill 216 in October, a change that clarified roles and may have streamlined decision-making. With 83 active sites in the third quarter, competition is intense. The court’s decision overlays a new dimension to that rivalry by allowing operators that can aggregate liquidity across borders to differentiate their peer-to-peer products.
Suppliers read the opening
Content pipelines into Ontario have been widening, a trend likely to accelerate if peer-to-peer traffic grows and operators invest in broader entertainment ecosystems to retain players. Games developer Wazdan deepened its footprint through a deal with NorthStar Gaming, bringing titles like 36 Coins and Mighty Wild: Panther Grand Platinum Edition to the locally rooted NorthStar Bets platform. The partnership includes Wazdan’s engagement tools such as Cash Infinity and Collect to Infinity, signaling a focus on features that can lengthen sessions and improve conversion. Read more in Wazdan expands in Canada through NorthStar Gaming partnership.
IGT PlayDigital is also aligning land-based hits with digital distribution in Ontario. The company plans the provincial debut of Tiger and Dragon Cash on Reels alongside launches in several U.S. states, a strategy that builds on brand familiarity and unified mechanics across channels. The game’s 243-ways structure and bonus cadence are designed to appeal to a broad audience. Details are in IGT Digital to debut Tiger and Dragon Cash Reels.
New suppliers continue to clear regulatory gates. Gaming Corps secured a license from the Alcohol and Gaming Commission of Ontario and plans to roll out titles like Hoop Champion and Shootout Champion. The company framed Ontario as both a stringent benchmark and a North American gateway, a view consistent with the province’s scale and growth rate. See Gaming Corps granted Ontario gaming license.
Operators recalibrate strategy
The peer-to-peer green light arrives as operators refine business models beyond the initial land grab. Betty, an online casino brand that launched in Ontario in February 2023, reported strong fourth-quarter revenue and plans to pursue a multi-jurisdiction strategy in 2025 after scaling its local base. The company built its platform in-house and targeted female casino players with low minimum deposits and short-form play. That positioning suggests operators see segmentation and product polish as the next levers. With cross-border poker and fantasy now viable, brands may blend liquidity-led offerings with differentiated casino arcs to lift lifetime value. The shift is captured in Betty CEO: It’s time to look at growth outside Ontario.
Operators that can integrate peer-to-peer pools without degrading responsible gaming controls could gain share quickly. Those focused on casual casino may face pressure to add or partner for poker and fantasy, or risk ceding high-engagement cohorts to rivals. Partnerships with media and data providers, already common in Ontario, could become more valuable as platforms use content and community to anchor cross-border network effects.
The next policy tests
The court’s framework invites coordination, not a free-for-all. The majority recognized that cross-border participation implicates provincial jurisdiction and agreements. That leaves open whether Ontario will seek formal compacts with neighbors or maintain a model where Ontario-licensed sites connect players to international pools while other provinces hold back. The coalition of lottery and gaming agencies that opposed Ontario’s plan will likely press for guardrails, including data sharing, advertising limits and geofenced protections against leakage into their markets.
Regulators will track whether the change repatriates offshore play, as operators contend, or fuels new demand at the margins. The most immediate metrics will be peer-to-peer handle and revenue trends, player acquisition costs and cross-sell rates into casino and sportsbook. If the ruling boosts regulated liquidity and reduces offshore reliance without triggering harm signals, it could strengthen the case for a harmonized Canadian approach. If not, provinces may double down on divergent rules. Either way, Ontario’s move shifts the center of gravity for online poker and fantasy in Canada and sets up the next round of market and legal testing.
