Ontario set for igaming and sports betting launch delay as policy issues mount
Media reports claim Canadian provincial regulators are to delay launch until mid-February, after the NFL Superbowl
The drive to launch regulated igaming and sports betting in Ontario has hit a roadblock which could delay the start of regulated operations until the middle of February 2022, media reports have claimed.
Reports in the Toronto Star newspaper have cited five inside sources which claim the proposed December launch date has been hit with delays in drafting policy conditions, data management and security requirements for the new market.
The knock-on effect is that prospective operators, which include some of the cream of the US market have delayed their own applications for igaming and sports betting licenses, pending confirmation of the rules and the implementation of necessary changes.
Revelations come less than a week after an Ontarian government report which suggested the provinces’ igaming and sports betting framework could be subject to legal challenges in the future due to its emphasis on operators, rather than the regulator itself.
“While certain details of Ontario’s Internet gaming initiative have yet to be finalized, there are indicators that a significant amount of decision-making power and business risk will rest with private operators,” the report stated.
“As a result, there is legal risk with respect to whether iGaming Ontario meets the “conduct and manage” threshold set out in the Criminal Code.
“Consideration for whether a province has illegally delegated the “conduct and manage” function in a gaming scheme to a private entity has been the subject of past legal challenges in Canada.
The fifteen-page report also highlights a potential conflict of interest with Alcohol and Gaming Commission of Ontario (AGCO)’s operation of iGaming Ontario in terms of regulatory oversight of the business.
It calls into question iGaming Ontario’s “limited public information” as to how it might protect Ontario residents through ensuring integrity of games offered, citing a “significant reputational risk” for AGCO as a regulator.
iGaming Ontario was initially slated for a December Launch, however the delay in resolving these issues could potentially mean the market does not launch in time for the Grey Cup and the NFL’s Super Bowl which takes place on February 13.
Ahead of the launch, several of the US’s biggest operators, including FanDuel, PointsBet, theScore and Gamesys have already begun making inroads into the fledgling market, making key hires, inking new deals and expanding operations into Canada’s largest province.