On July 24, 2020, the Supreme Court of Canada released its decision in Atlantic Lottery Corp. Inc. v. Babstock, 2020 SCC 19. The Court allowed the appeals, and struck the plaintiffs’ claims on the basis that they disclosed no reasonable cause of action.
Background
Atlantic Lottery Corporation (“ALC”), which is constituted by the four Atlantic provinces, approves the operation of video lottery terminal games (“VLTs”) in Newfoundland and Labrador (“NL”). The plaintiffs alleged that VLTs are inherently dangerous, deceptive and harmful. They sued ALC and advanced claims based on: misrepresentation under the Competition Act, R.S.C., 1985, c. C-34; breach of the Statute of Anne, 1710; breach of the Criminal Code‘s prohibition against games similar to three-card monte; failure to warn of the dangers of VLTs; breach of contract; unjust enrichment; and waiver of tort. For most of these claims, the plaintiffs sought disgorgement of the profit that ALC earned from VLTs.