Ontario DFS is Dead, Long Live Ontario DFS!
Major DFS sites announced last week that they will no longer offer DFS to players located in Ontario “due to a change in government regulations”. For obvious reasons, DFS players in Ontario are upset.
There have been some informative articles written on why sites are pulling out, such as THIS ONE by Greg Warren and THIS ONE by John Holden and I don’t want to repeat the content of that article.
Even though the announcement by major DFS sites took players by surprise, it’s been known for a long time that (i) the Alcohol and Gaming Commission of Ontario specifically included DFS as a product that it will be regulating; and (ii) peer-to-peer games will be ring fenced.
This is consistent with Criminal Code Requirements, but it still bad news for DFS, poker, betting exchange, and progressive jackpot aficionados.
Eventually there will be interprovincial agreements that allow shared liquidity between provinces. There may even be agreements between regulated jurisdictions outside of Canada. The provinces seem to get away with creatively interpreting certain gaming and betting sections of the Criminal Code. But we’re a looong way from that happening.
A few poker sites have registered with the AGCO. We’ll see how big the ring-fenced tournaments get.
What is most interesting to me is the interplay between the AGCO’s decision that they have the authority to regulate fantasy sports and the concept of fantasy sports as a “game of skill”.
All i’ve heard from fantasy sports operators over the past 10 years is about how DFS is a game of skill. Maybe it is! Some states have ruled that it is a game of skill, but they use different tests than we do up here.
If fantasy sports is truly a game of skill, the AGCO doesn’t have the authority to regulate it. It’s not a “game” or a “bet” as that term is used in the Criminal Code. So far, no one has stepped up to challenge this. I haven’t heard from the FSTA, and DK and FD would rather use their brand to provide sportsbook and casino services in Ontario and continue to offer DFS in other provinces. Just like in Ontario, they will keep playing the “game of skill” card until they are actually challenged on it.
In the meantime, look for unregistered operators to take advantage of the Ontario DFS vacuum. Perhaps we will finally find out whether DFS is a “game of skill”.
