Mohawk Council of Kahnawake Awaits Verdict from iGaming Hearing against Ontario

Awaiting a verdict from the Ontario Superior Court, the Mohawk Council of Kahnawake (MCK) stands poised after recent hearings between the tribe and Ontario's internet gambling regulatory body. The First Nation initiated legal action against Ontario's burgeoning online casino and sports betting sector, asserting that it violates Canada's Criminal Code.

Ontario launched its iGaming market for third-party operators in April 2022, experiencing considerable success. However, the tribe contends that the regulatory framework for online gambling in the province undermines its inherent right to conduct online gaming operations, which have long been under the purview of the Kahnawake Gaming Commission for over twenty-five years.

Key Points from the Hearings

During the iGaming hearing, Justice Lisa Brownstone presided over arguments presented by MCK's lawyer, Nicholas Kennedy, as well as lawyers representing Ontario's Attorney General and iGaming Ontario. Chief Tony Perron of the tribe noted that the majority of legal arguments revolve around Ontario's interpretation of the terms "conduct and manage."

Eric Doucet, counsel for MCK, highlighted the tribe's primary concern with the province's model of licensing operators through iGaming Ontario, stating that it does not align with the requirements for conducting and managing gaming activities as outlined in the Criminal Code. He emphasized that brands are making independent business decisions rather than operating directly under Ontario's authority.

Scott Hutchison, representing Ontario in court, compared the role of conducting and managing gaming to that of an orchestra conductor, asserting that it involves a more strategic and directive function rather than direct involvement in the gameplay.

Recent iGaming Figures from Ontario

Ontario recently disclosed its online gambling figures for the third quarter of the 2023-24 fiscal year, revealing that the jurisdiction handled CA$17.2 billion in digital bets, resulting in approximately CA$658 million in gaming revenue. Mr. Doucet noted that if the court rules in favor of the province, it could have significant implications for the First Nation's online gambling business in the future, potentially necessitating a defense of its jurisdiction against other territories.

Quebec's Response

The Mohawk Council of Kahnawake may find solace in Quebec's reluctance to emulate Ontario's iGaming framework. The Province of Quebec expressed hesitancy in introducing its own iGaming regulations, citing concerns about excessive betting advertisements and their potential impact on children's exposure to gambling.