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It was passed into law as part of Quebec’s 2016 fiscal-year budget, despite widespread censorship -based concerns. The new rules were then immediately challenged by the Canadian Wireless Telecommunications Association ( CWTA ), an industry group representing many of the ISPs. The Superior Court ruling weighed in on the side of the CWTA and of Canada’s federal-level Telecommunications Act, which retains the overriding rights to determine the rules and conduct of all communication media in Canada, including the Internet. In the ruling, however, the Court dissected several problems with Quebec’s Bill 74, inferring that even without the superseding federal law, the Loto-Quebec-engineered blacklist plan was still doomed to legal defeat. Revenue shortages triggered initial blacklist plan Loto-Quebec’s long-standing desire to force all of Quebec’s online gamblers to wager exclusively on its site dates to 2014, and an ongoing and increasing shortfall by Loto-Quebec and its online offering, Espacejeux, to meet the revenue projections assigned to it within Quebec’s yearly budget projections. With the backing of provincial legislators, the state-run lottery opted to force the issue by calling for the blocking of all “unlicensed” online operators, which meant all sites except Espacejeux, since Quebec lacked (and still does lack) an online-gambling licensing framework. The plan was for Loto-Quebec to assemble and maintain a blacklist of all unofficial sites available to Quebecois punters, which would be forwarded via Loto-Quebec’s parent agencies to all ISPs operating in the province. Those ISPs faced stiff penalties for non-compliance. However, as part of their battle against the blacklist law, those ISPs and the CWTA also argued that they were unlawfully forced to become unpaid and unlicensed agents of the government, a point that the Superior Court ruling also upheld. As the ruling noted, “The essence of the impugned provisions is to enforce the exclusive right of the province to exploit online gambling by imposing an obligation on ISPs to block signals or data from content providers that the province considers illegal. These powers fall under federal jurisdiction.” As part of the rationale for implementing the blacklist and related provisions, Loto-Quebec and its supporting lawmakers argued that effectively granting the online monopoly to Espacejeux offered better control over possible addictive- and problem-gambling behaviors.
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