Kahnawà:ke Will Not Appeal in Ontario Gaming Dispute

The Mohawk Council of Kahnawà:ke (MCK), based in Quebec, has decided not to appeal the Ontario Superior Court's recent dismissal of its challenge against iGaming Ontario's online gaming and betting framework.

MCK argued that Ontario's unilateral changes to gaming management were both "illegal and unconstitutional." The Council's main contention was that Ontario had misinterpreted Section 207 (1) of the Criminal Code, which allows provinces to regulate single-event sports betting, by permitting operators to "conduct and manage" gaming themselves.

However, last week, Justice Lisa Brownstone ruled in favor of iGaming Ontario (iGO). She determined that the agency's gaming model and industry management align with the provisions of the Criminal Code.

Despite the unfavourable ruling, the MCK told Covers' Geoff Zochodne on Wednesday that it would not contest the decision. Instead, it plans to pursue legal validation of its gaming rights through other channels.

MCK Satisfied with Legal Standing Acknowledgment

Although the court ruled against Kahnawà:ke, it did acknowledge that the Mohawk Council had the proper standing to challenge the province. Lisa Lahache, political press attaché for the Council, noted this as a "silver lining," demonstrating that MCK has a "sufficient interest and expertise in the operation and regulation of gaming in Ontario."

The Council has long asserted that the Mohawks of Kahnawà:ke possess an "Aboriginal right" to conduct and regulate gambling within and from their community. MCK has previously stated that Bill C-218, which introduced single-event sports betting and led to Ontario's regulated market, has "changed the iGaming/sports betting landscape to the detriment of Indigenous People" and disregards First Nations' rights to operate and regulate gaming safely and responsibly.

MCK also argued that being required to pay registration and licensing fees to operate in Ontario infringes on its legal jurisdiction over gaming. Due to its opposition to Ontario's market, MCK ceased the operations of its subsidiary, Mohawk Online Limited, in the province.

MCK chief Cody Diabo commented on the ruling, stating, "As far as having to pay a provincial government some type of fee, it's out of the question. It really puts us in a difficult situation for us to be operating. It's unfortunate because the Kahnawà:ke Gaming Commission is renowned globally, but we can't even operate basically in our own backyard because of provisions in C-218."

Hopes for Progress with Bill S-268

Regarding alternative legal avenues, Chief Diabo expressed hope for progress with Bill S-268. Introduced by Sen. Scott Tannas last June, this proposed legislation would amend the Criminal Code to grant First Nations exclusive authority to conduct and manage lottery schemes on their reserves.

Sen. Brent Cotter recently supported the bill in the Senate, stating that it would "parallel the authorisation" given to provinces for managing gaming in their jurisdictions, thus extending this jurisdiction to any First Nation that wishes to participate.

In its current form, the bill acknowledges First Nations' rights to oversee gaming on their reserves. Chief Diabo and MCK Grand Chief Kahsennenhawe Sky-Deer recently met with Tannas in Ottawa to discuss potential amendments.

Chief Diabo expressed optimism, saying, "My only hope is that they'll do what's right in Bill S-268 and vote in favor of the proposed changes we've suggested, which would essentially put us back in the field of operating online gaming from the territory. That would essentially do what they should have done from the beginning and exempted or made a carveout for Indigenous communities."