Ontario’s online gambling market to launch early April
Ontario has unveiled a spring launch date for its new online gambling market to applause from local players vying to get in — but one casino giant slammed it while one First Nation promised a legal challenge.
As of April 4, the province will let private gaming websites that have qualified through a licensing process start taking wagers. IGaming Ontario, the new Alcohol and Gaming Commission of Ontario subsidiary that will run the market, announced the date Friday.
News that the market will go ahead as planned comes after Great Canadian Gaming mounted a lastminute lobbying effort earlier this month, arguing the government should scrap the launch and instead give brick-and-mortar casinos a two-year exclusive window on internet gaming.
But Toronto-based sports and esports betting company Rivalry Corp. said it supports iGaming Ontario’s decision. Rivalry, which has a gaming licence from the Isle of Man and already operates in other jurisdictions, said it has applied to become a licensed operator in Ontario.
Ontario is set to be the first province to run a private market for online betting and with predictions that it could be one of the biggest gaming markets in North America, many will be watching closely to see how it unfolds.
Gambling has long been illegal in Canada unless managed by provincial or territorial authorities, many of which now run major lottery and casino operations and offer online options.
But dozens of major gambling websites that are unregulated here have also been operating largely unimpeded for decades and reports suggest they already control a large share of the market.
The province has said it wants to convince some of those grey-market players to operate under the new regime, capturing new tax revenue while imposing responsible gambling standards and anti-money laundering protections.
Ontario’s auditor general warned last year that the new model could be subject to legal challenges and in a statement Friday, the Mississaugas of Scugog Island First Nation (MSIFN) said it intends to “challenge the province’s iGaming scheme in court.”
The First Nation, which is located in what is now Port Perry and is home to the Great Blue Heron casino, said the government failed to hold formal consultations with Indigenous governments about the impact of the new gaming model.
“Today’s announcement by the Ford government is a slap in the face of First Nations,” said Kelly LaRocca, Chief of the MSIFN.
Great Canadian, which is owned by U.S. private equity fund Apollo Global Management and operates the Woodbine and Pickering casinos among others, commissioned a report late last year that concluded the new regime would lead to a loss of tax revenue and casino jobs.
Great Canadian Gaming Corp. CEO Tony Rodio said in a statement Friday that the new regime “falls far short” of offering “fair, competitive gaming rules.”
NorthStar Gaming also welcomed the news Friday. NorthStar is the gaming venture of NordStar, an investment company led by Jordan Bitove and Paul Rivett, which also owns Torstar, the owner of this newspaper and other media properties.