Canadian Lottery Coalition Becomes CARG Ahead of Major Gambling Policy Shift

The Canadian Lottery Coalition has rebranded as the Canadian Alliance for Regulated Gaming (CARG) to counter illegal online gambling amid rapid shifts across Canada’s betting market.

The national group’s expansion comes as Quebec considers opening a competitive commercial iGaming market and the Supreme Court prepares to address Ontario’s international player pooling.

Prediction markets are now a reality in Canada as well, although restricted to economic forecasts (inflation, interest rates, employment), financial indicators (stock market benchmarks) and environmental forecasts. Their U.S. brethren offer categories like sports, politics and entertainment.

CARG Calls for Regulatory Clarity

“Canada’s gambling landscape is changing at an unprecedented pace, while illegal and unregulated operators create growing risks for consumers and communities,” said Molly Cormier, executive director of the Canadian Alliance for Regulated Gaming (CARG).

“Canadians must be at the center of how we respond. By bringing together governments, regulators, and industry leaders, we can help ensure the public interest continues to drive the future of gambling policy in Canada.”

Four Crown Corporations Remain Members

The former Canadian Lottery Coalition (CLC), a nonprofit organization, was established in 2021 as a partnership among provincial Crown lottery corporations to combat illegal gambling and advocate for regulated commercial markets.

Four provincial Crown corporations currently hold membership in CARG: the Atlantic Lottery Corporation (ALC), serving Nova Scotia, New Brunswick, Prince Edward Island, and Newfoundland and Labrador; British Columbia Lottery Corporation (BCLC); Loto-Québec; and Manitoba Liquor and Lotteries (MBLL).

Alberta Gaming, Liquor and Cannabis (AGLC) was a founding member but withdrew in early 2024 after the province announced plans to adopt an Ontario-style private commercial iGaming market. Alberta launched its open commercial framework July 13.

Unified Voice Needed

Lotteries and Gaming Saskatchewan (LGS) exited the coalition in December 2025, while Ontario has never participated in the group.

“The Alliance was created in recognition of the increasingly complex and national nature of many industry-related issues and the importance of ensuring there is a strong, unified voice representing legal and regulated gaming organizations,” Cormier said.

In a statement announcing its launch, CARG said it would welcome new members and “additional voices from across the legal and regulated gaming ecosystem.”

Supreme Court Weighs Poker Liquidity

The rebranding comes at a pivotal moment for Canada’s regulated gambling industry.

On Wednesday, Oct. 7, the Supreme Court of Canada heard arguments from four Crown corporations (ALC, BCLC, MBLL and Loto-Québec) and the Ontario government on the other side about whether Ontario online poker and daily fantasy sports players on licensed sites can pursue shared player liquidity pools outside the country.

Alberta Partners With Ontario

The four CARG members are appealing a November 2025 Ontario Court of Appeal decision that found international player pooling permissible under Canada’s Criminal Code.

The Crown corporations contend that cross-border play exceeds the territorial mandate imposed on provincially managed gambling operations, threatening their exclusive authority over legal online gaming in their respective home markets. Alberta intervened in the case on Ontario’s side.

Quebec Election Raises iGaming Stakes

On Monday, Oct. 5, Quebec voters elected a new minority Parti Québécois (PQ) government. Both the PQ and the Quebec Liberal Party, which will form the official opposition, have said they are committed to launching a private, regulated iGaming model similar to what Ontario and Alberta have launched. That would chip away at the Loto-Québec iGaming monopoly.

Meanwhile, in British Columbia, the Conservatives hold a five-point lead in the polls over the NDP as voters prepare for a provincial election Oct. 24, according to Angus Reid. A Conservative government could upend BCLC’s monopoly in that jurisdiction, like what happened in Ontario and Alberta.

Canada Restricts Sports Prediction Markets

On Aug. 27, the Canadian Investment Regulatory Organization (CIRO) and the Canadian Securities Administrators (CSA) issued joint guidance explicitly rejecting the expansive U.S. prediction market framework, where exchanges like Polymarket operate under Commodity Futures Trading Commission (CFTC) oversight.

Financial app Wealthsimple subsequently launched its own Canadian platform, Wealthsimple Predict, offering access to nearly 4,000 event contracts limited strictly to financial, economic, and climate metrics.

Prediction Markets Resemble Traditional Gambling

Cormier noted that prediction markets share fundamental characteristics with traditional gambling, as users stake financial value on uncertain future outcomes.

Despite differences in product structure and marketing, the core mechanics are functionally identical, she explained.

Consumer Protection Concerns Take Centre Stage

CARG is concerned the discussion to date has been driven largely through a securities regulatory lens. That raises significant questions related to gambling policy, consumer protection, responsible gambling, public health and enforcement.

“That reality makes regulatory clarity essential,” Cormier told Casino.org. “Most Canadians do not distinguish between a wager, a bet, and an event contract. 

“In the absence of clear legal and regulatory boundaries, that confusion quickly becomes a consumer protection issue. If a prediction market product is not authorized under the applicable Canadian legal and regulatory framework, it should not be available to Canadians.”

As Canadian regulators and courts weigh these competing market models, CARG plans to push federal and provincial policymakers to establish clear legal boundaries that protect consumers before unauthorized platforms gain a permanent foothold.