As some of you may already know from reading last week’s article, Manitoba Liquor & Lotteries (“MBLL”) has taken legal action against offshore gambling operator Bodog, seeking to block its services in the province. MBLL, alongside the Canadian Lottery Coalition (“CLC”), filed an injunction with the Manitoba Court of King’s Bench, arguing that Bodog’s operations violate provincial gaming laws and divert revenue from Manitoba’s sole legal iGaming platform, PlayNow.com.
Manitoba’s Case
MBLL’s filing claims that Bodog.eu and Bodog.net are operating illegally in Manitoba, where MBLL holds exclusive authority over gambling activities. According to the application, Bodog’s presence in the province has resulted in significant financial losses for MBLL. The injunction is supported by the CLC, a group representing provincial gaming agencies from British Columbia, Saskatchewan, Quebec, Atlantic Canada, and Manitoba. The coalition, formed in 2022, aims to counter the growing influence of offshore gambling platforms targeting Canadian players.
Bodog offers Canadian users access to sports betting and casino games like poker and blackjack. An affidavit from a digital forensic analyst submitted with the court application states that Bodog actively promotes its services in Canada, even going so far as to feature Canadian sports teams and players in advertisements. MBLL further alleges that Bodog falsely presents itself as a legal and trustworthy platform (even describing itself as “the most trusted site in Canada to play casino games”) despite lacking regulatory approval in Manitoba.
Will Hill, Executive Director of the CLC, described the legal action as a key step in tackling illegal gambling across Canada. The key objectives of the application are to:
Gain a declaration from the Court stating that Bodog has no lawful authority to offer gambling services in Manitoba, or advertise those services within the province;
Gain a declaration from the Court stating that Bodog’s advertisements characterizing its platform as legitimate, legal, or “safe” constitutes a misleading representation in violation of the Competition Act, 1985 and the Trademarks Act, 1985;
Obtain a declaration stating that Bodog, as an unauthorized and illegal gambling site, has engaged in tortious conduct; and finally,
Secure an injunction against Bodog’s operations and advertisement in Manitoba, as well as require Bodog to implement geo-blocking technology to prevent Manitoba residents from accessing its platforms.
Hill also expressed hope that the case will set a legal precedent, making enforcement against offshore operators more effective in other provinces. The coalition previously requested that Bodog voluntarily restrict access in the province, but the company refused.
This case is currently scheduled on Manitoba’s Civil Uncontested List. This means that at the hearing (currently scheduled for March 5th, 2025) the MBLL will have to argue that their case is sufficiently urgent. If they succeed in their argument, then the judge will adjudicate the matter at that time, or else schedule another time in the near future to do so. If the MBLL cannot successfully argue that the matter is sufficiently urgent, then the case will be adjourned to the Contested List, meaning it will take longer to reach a ruling.
The case names Bodog’s operator, Il Nido Ltd., and trademark holder, Sanctum IP Holdings Ltd., both based in Antigua and Barbuda, as defendants. However, the application also notes that other unknown entities could be involved in Bodog’s operations in Manitoba.
A (Bo)Dog-Eat-Dog World
Bodog isn’t the first Bo-company to run into legal issues recently. Bodog’s U.S.-facing sister brand, Bovada, has also been facing increased scrutiny from state regulators.
As Jack noted in last week’s article, it seems that Bodog/Bovada can be responsive to cease-and-desist letters when they come directly from regulators. Several U.S. state regulatory agencies have issued cease-and-desist notices to Bovada, which have been neither acknowledged nor responded to. However, inevitably the issuing state soon ends up on Bovada’s restricted access list.
The most recent states to tangle with Bovada were Kansas, Louisiana, and Pennsylvania. Kansas gaming officials confirmed they sent a notice in July 2024, which Bovada never officially signed for or responded to. Louisiana regulators had a similar experience in August, accusing Bovada of offering illegal online gambling services, including sports betting and casino games, without proper licensing. Pennsylvania officials also confirmed sending a notice, though they did not provide further details. All three states were later added to the restricted access list.
As of the writing of this article, Bovada restricts access in a total of 13 states as well as Washington, D.C.
AML in the Dog House
Part of the issue around unregulated, offshore casinos is the inability to enforce anti-money laundering (“AML”) measures. A recent report from Canada’s Financial Transactions and Reports Analysis Centre (“FINTRAC”) warns that offshore gambling sites may be facilitating money laundering linked to drug trafficking, including dangerous opioids like fentanyl.
In response to this report, the Manitoba government has ordered MBLL to report suspicious casino transactions directly to the police. Previously, MBLL only reported such transactions to FINTRAC, which then determined whether to alert law enforcement. The new directive, announced by Premier Wab Kinew, aligns Manitoba’s practices with those of Ontario and British Columbia, where casinos report to both FINTRAC and local police.
Kinew emphasized that this change will strengthen police investigations and hold criminals accountable, particularly those involved in the fentanyl trade. Winnipeg Police Superintendent Cam Mackid expects a surge in actionable intelligence, leading to more money laundering investigations. MBLL CEO Gerry Sul stressed the risks posed by money laundering in cash-heavy casinos and underscored the importance of intelligence-sharing. Furthermore, the province has committed to investing $325,000 in new surveillance equipment and expanding MBLL’s anti-money laundering team.
The legal battle between MBLL and Bodog is more than just a dispute over gambling revenues – it highlights the broader challenge of regulating offshore companies that operate outside provincial and federal oversight. As Manitoba strengthens its enforcement efforts and aligns its policies with other provinces, the outcome of this case could set an important precedent for tackling unregulated online gambling in Canada. Whether this leads to broader changes in enforcement remains to be seen, but it’s a development worth watching.
