[Mordak]

If they want to offer their contest to residents of Quebec, yes, they must abide by local laws and regulations.

Running a contest in a given jurisdiction is a form of doing business in that jurisdiction, and so of course the contest is subject to whatever regulations that jurisdiction applies to that activity (contests, in this case). Imagine if this were not the case, and anybody could avoid complying with local laws just by calling their activity a 'contest' and running it out of some foreign jurisdiction.

So, by saying people in Quebec can't play, Google is not required to abide the unusual laws that they have there around contests and lotteries.