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Take PokerStars, for example. They operated in Australia using a loophole in the Interactive Gambling Act 2001. However, Australia passed a new law and the ACMA threatened to tattle on PokerStars' to gambling commissions.
One of those commissions was the New Jersey's Division of Gaming Enforcement. They threatened to pull PokerStars' New Jersey license if they didn't cease operations in Australia.
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That'd have severe financial repercussions, so PokerStars stopped operating in Australia. Long story short, it's the same idea for gambling sites in Canada.