Looking to add $400 million a year in revenue to its cash-strapped Liberal government, Ontario is looking into the possibility of legalizing online gambling.

Paul Godfrey, the Ontario Lottery and Gaming Chair, announced on Tuesday that the Crown Corporation would take the next 18 months to consult on the feasibility of Internet gambling, hoping to have it legalized by 2012. "Across Canada and around the world, online commerce is part of our everyday lives and OLG is excited to start the consultation process for online gaming and growing its marketplace in the future," said Godfrey. "OLG's Internet gaming program will stress responsible gaming while providing an enjoyable experience for Ontario players."

This follows the news that Premier Dalton McGuinty's administration is burdened with a $19.7 billion budget deficit and is "exploring" the possibility of expanding the gambling industry.

It is estimated that Ontarians currently gamble approximately $400 million on offshore websites; by legalizing online gambling it is hoped that money will stay in the province and boost OLG's profits. Last year, the gambling monopoly generated $1.9 billion, which helped fund schools, hospitals, and other public works.

Last month, British Colombia became the first province or state in North America to offer legalized online casino gambling, after estimating it was losing $100 million to offshore illegal websites. Ontario hopes to follow suit.

However, Progressive Conservative Leader Tim Hudak warned on Monday that Ontario taxpayers should be leery about McGuinty bringing Internet gaming to the province. The Tory leader praised Godfrey for his role in cleaning up troubled OLG, but he said the Liberals should proceed with caution.

"Who is going to trust Dalton McGuinty to run an online casino?" Hudak said. "Listen, this guy has had two consecutive major scandals at the OLGC, they've gone through five CEOs, they can't run the existing casinos let Internet gambling," he said. "They have a voracious appetite for more and more tax dollars. They can't control the OLGC as it is. This will be a disaster if Dalton McGuinty is running an online casino."

Offshore websites have been cashing in on large windfalls from gamblers all over the world, and several governments have already tried putting a stop to it - either by outlawing online wagering in their respective countries outright, or by legalizing and regulating it so that they could profit from it themselves. It seems as though Ontario is on the fast track to the lattter.

Tags: Online Gambling, Canada, Ontario, Online Gambling Legislation