Court Upholds iGaming Ontario Model and Dismisses Kahnawà:ke Challenge

The Ontario Superior Court has dismissed the challenge brought by the Mohawk Council of Kahnawà:ke, affirming the legality of the gaming model operated by iGaming Ontario (iGO). The court ruled that iGO's framework for managing the gaming industry in Ontario aligns with the provisions of the Criminal Code of Canada.

Court Sides with iGO

"We have always been confident in our model and are pleased that the court has ruled in our favour, ensuring that Ontarians can continue to play with confidence in our regulated iGaming market," said Martha Otton, Executive Director of iGaming Ontario, in an official statement. "Ontario's model meets the requirements and contributes to the public good by protecting players, their data, and their funds. It also supports funding for priority public services in Ontario and promotes economic development by creating well-paid, high-tech jobs."

Since April 4, 2022, iGaming Ontario has overseen online gaming and sports betting in Ontario. The court's ruling validated iGO's gaming model in response to a challenge filed by Kahnawà:ke in November 2022, seven months after the province launched its regulated market. The challenge was heard in February of this year. The Mohawk Council of Kahnawà:ke argued that the provincial government's changes to gaming management were "illegal and unconstitutional."

Interpretation of 'Conduct and Manage'

The challenge focused on Ontario's interpretation of Section 207 (1) of the Criminal Code, which allows provinces to regulate single-event sports betting. The Mohawk Council contended that Ontario permitted private-sector operators to "conduct and manage" gaming themselves, contrary to the law. Essentially, the Council sought a ruling that private operators, not iGO, were managing gaming in Ontario.

Justice Lisa Brownstone noted issues with the term "conduct and manage," describing it as vague and not particularly helpful for legal interpretation. The Mohawk Council argued that a reasonable interpretation would show that Ontario delegates these duties to operators, who own their gaming websites, select their gaming offerings, decide on advertising, and retain most of the revenue. iGO, however, claimed it manages iGaming by controlling allowed games and operator conduct through contracts.

While the court acknowledged Kahnawà:ke's standing to challenge the province, it rejected the Council's argument. Justice Brownstone determined that Ontario retains "key decision-making power" over the iGaming scheme. Operators in Ontario's market are not autonomous, as they cannot decide which games to offer and are restricted in areas like data usage, subcontracting, advertising, customer care, and responsible gaming.

On Monday, iGO stated, "In dismissing the application brought forward by the Mohawk Council of Kahnawà:ke, the Superior Court found that iGaming Ontario is the 'operating mind' behind Ontario's competitive iGaming market in accordance with the conduct and manage requirements of the Criminal Code."

Kahnawà:ke's Concerns

The Mohawk Council of Kahnawà:ke argued that its legal challenge was a last resort after unsuccessful attempts to engage in dialogue with government officials. The Council has been involved in the online gaming industry for 25 years, licensing operators on behalf of the Mohawks of Kahnawà:ke. It opposed Bill C-218, the legislation introducing single-event sports betting, which led to Ontario's regulated market.

Kahnawà:ke claimed the bill "changed the iGaming/sports betting landscape to the detriment of Indigenous People" and that the market framework "disregards the expertise and rights of First Nations to operate and regulate safe and responsible gaming." In opposition to Ontario's new market, the Mohawk Council ceased the operations of its subsidiary, Mohawk Online Limited, within the province.