While numerous major online sports betting operators have moved into the Ontario market over the last two years, major companies like DraftKings and FanDuel have removed their daily fantasy sports (DFS) platforms.
While the legalized and regulated ON online gaming market launched in April 2022, the new laws governing iGaming in the province left some vagaries in regard to DFS and now some officials are looking to clear up the issue. The issue in question is whether playing DFS violates Canadian law because players would be competing in markets that include liquidity from other players outside the country.
“The government of Ontario has filed an Order in Council with the province’s Court of Appeal to question whether patrons in Ontario can partake in online games and wagering with players located outside of Canada,” Canadian Gaming Business reported last Tuesday. “Ontario, with approval from its Attorney General, is questioning whether online gaming and wagering with players outside of Canada would remain lawful under the province’s Criminal Code as DFS remains a hot topic globally.”
Clarification, Rules Changes Possible
For those new to the industry, DFS derived from traditional fantasy sports. However, rather than competing with other players in a league, participants compete in various contests where they “draft” players to their teams on a weekly basis.
The contests can feature thousands of players with large payouts for winners. DraftsKings and FanDuel are the leaders in the industry, but there are also several other competitors as well. All feature varying formats and options. However, DraftsKings and FanDuel closed their operations in Ontario under the province’s new betting rules.
“Yes, daily fantasy sports are perfectly legal in Ontario,” the Toronto Guardian reported in October. “However, as per AGCO’s (Alcohol and Gaming Commission of Ontario) internet gaming standards, daily fantasy sports are considered to be a form of gambling, as opposed to the widely accepted definition of DFS as games of skill.
“This view of daily fantasy sports by the regulators in Ontario has led to multiple restrictions and made it more difficult for operators to offer their products.”
Just like online gaming operators, the AGCO collects a $100,000 registration fee from DFS operators and a 25% tax on revenue, about twice as what is seen in most U.S. states. The state is now looking to clarify the rules and possibly change them, meaning DFS could return to the province at some point.
