ISSN 2561-8342 · Toronto · Halton Hills
C4eJ
A Journal of Ethics in Context
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Essay

The Ethics of a Provincial Gambling Monopoly Going Digital

For most of its existence, Ontario's gambling monopoly rested on a bargain that was easy to state and hard to argue with. Gambling would happen whether or not the province approved of it, so better that the province run it. Profits would go to hospitals and schools instead of shareholders, and a public operator could be told to show restraint in ways a private one never would. You did not have to like gambling to accept the arrangement. You only had to prefer it to the alternatives.

That bargain was struck in the age of paper tickets and casino floors. It is worth asking whether it survives the move online.

The old bargain

The province created its lottery corporation in 1975, and the moral logic barely changed for four decades. The state permitted a vice, contained it, and directed the proceeds to public purposes. Critics could object that a government was profiting from a habit that harms some of its citizens. Defenders could answer that the harm existed anyway, and at least the money stayed public.

What both sides took for granted was friction. To gamble, you had to go somewhere. The corner store closed at night. The casino was a drive away. Nobody designed these obstacles as safeguards, but they worked as safeguards all the same.

What the screen removes

That friction is now gone. OLG put its casino games online in 2015, and in April 2022 the province went further, licensing private operators to compete for Ontario players under rules set by the Alcohol and Gaming Commission of Ontario. The market this created is crowded. A curious reader can open Online Gambling Ontario and scroll through the licensed sites now competing for the very players the province once claimed to be protecting.

Each step had a plausible justification. People were already wagering on offshore sites, and regulation brings them somewhere safer. But notice what the province has become: an owner, a licensor, a tax collector, and a marketer of a product available in every bedroom at three in the morning. The old defence, that public ownership permits restraint, is hard to square with an operator that advertises during hockey games.

Whose money it is

Martin O'Neill's essay on community, solidarity and the sense of justice offers a useful lens here. A public revenue stream is not morally neutral just because it funds good things. It matters who pays into it, and why. Gambling revenue leans on the people who lose the most, many of whom are experiencing harm rather than enjoying entertainment. That makes it closer to the health injustices Sandrine Renaud describes in mental health care than to an ordinary tax.

Eric Orts has argued that firms have plural purposes, and that profit alone cannot define what a business is for. If that holds for private companies, it holds twice over for a crown agency. A public gambling operator that measures itself chiefly by revenue has quietly abandoned the only argument that justified its existence.

The move online was probably unavoidable. What the province has not yet said, in public and in plain words, is what its gambling agency is now for. Until it does, the digital monopoly is running on the moral credit of a bargain written for a different world.

[2026 C4eJ 2]

Cite as: Martin O'Neill, "The Ethics of a Provincial Gambling Monopoly Going Digital" [2026 C4eJ 2].