Gambling In Canada: Legal Landscape And Key Regulations

Canadian gambling laws involve a complex relationship between federal and provincial regulations. Under Section 207, Part VII of Canada’s Federal Criminal Code, gambling is legal under specific conditions and regulated by provincial and territorial authorities. The Code permits these jurisdictions to oversee and organize gambling activities, lotteries, and other forms of betting, particularly through licensed, state-run lotteries and casinos, typically managed by provincial Crown corporations.

The gambling sphere in Canada has experienced a popularity boom over recent decades. The statistics say that over 60% of adults participate in related activities. The market continues to grow due to the quickly developing online gaming and betting. The latest legislative amendments hugely facilitate this process.

We aim to acquaint you with the appropriate legislation, explain its differences across provinces, and help you choose a reliable online gambling platform.

Historical Evolution of Gambling in Canada

The roots of gambling in Canada date back to hundreds and even more than a thousand years ago. Indigenous peoples had their unique games with bets long before the Europeans arrived. These games were often woven into social, cultural, and spiritual practices, and were not commercialized like modern gambling. However, detailed information from this early period is scarce, as Indigenous traditions were largely passed down orally. Records from the early colonial era also offer limited insight into gambling practices, as documentation of such activities was not a priority.

We can clearly trace the evolution of gambling regulations since the beginning of the 20th century. It all started with legal charitable bingo and raffles in 1900. Then followed pari-mutuel betting in 1910 and the first legal gambling events in 1925. The period between 1900 and 1970 was the era of charitable gambling.

Lotteries came on the scene in 1969, and the 1970 regulation changes set the background for land-based casinos. The latter appeared in the late 20th century. Winnipeg Casino, launched in 1989, was the first land-based venue to legally operate in Canada. Then, Casino de Montreal opened in 1993.

Canadian provinces launched regulated online gambling in 2009. All activities were controlled by province-owned crown corporations. Ontario was the first region to allow private operators into the market in 2022. Alberta is set to follow its example in early 2025.

When Did Gambling Become Legal in Canada?

The legal status of gambling in Canada evolved with time. Here are the key milestones in this process:

• The Criminal Code of Canada was introduced in 1892. It banned most forms of gambling.
• The 1900 year amendments allowed charitable bingo and raffles.
• 1910 – criminal code changes allowed horse racing betting.
• 1969 – amendments legalized lotteries.
• 1970 – legislation delegated casino licensing and regulation to provinces;
• 1985 – Criminal Code of Canada amendments allowed province-regulated gambling activities.
• 2009 – legal changes introduced gambling operated by provincial authorities.
• C-218 Bill allowed bets on individual sports events in 2021.
• Ontario legalized privately operated online casinos in 2022.

Impact of Technology on the Sphere

Technological advances in the online and mobile spheres have largely spurred online gambling popularity growth and subsequent legalization. The launch of the first online slots in the early 1990s, especially those developed by Microgaming, resulted in dozens of casino sites available to Canadians in the ensuing decade. The rise of mobile technologies and gambling apps has brought the sphere to a new level, engaging even more people. Reliable and safe Canadian payment solutions like Interac, iDebit, and Instadebit have largely supported huge interest in casinos.

Canadian Gambling Laws: Federal vs. Provincial

The regulating gambling in Canada laws work both on federal and provincial levels. The Criminal Code of Canada is the major document that impacts the sphere country-wide. It sets a range of penalties for illicit gambling for participants and providers. The code also states that illegal gambling activities are those not conducted or supervised by provincial authorities.

Other federal legislation doesn’t directly impact players because the key Canadian gambling regulations are entitled to provinces. Federal bills and criminal code amendments just create the essential framework to allow provincial governments to implement their gambling-related policies.

Provincial regulations largely vary depending on the local authorities’ approach to the industry. Ontario gambling laws are probably the most progressive in the country. They allow various forms of online and offline gambling. The province is currently the only one that licenses private operators.

Other provinces and territories have also legalized many forms of gambling, including casinos. However, they don’t allow privately owned operators in the sphere. Only government-owned crown corporations can offer the related services. British Columbia and Quebec follow Ontario in the gambling liberalization rating. They legalized many forms of gambling, but these provinces still don’t allow private businesses into the niche. Alberta is also on the way to significant gambling liberalization, intending to launch an Ontario-like market in early 2025.

Though gaming and betting are mostly legal across Canadian provinces and territories, you need to consider local nuances. They impact the legal gambling age in Canada, the exact types and forms of gambling allowed by the authorities, and possible penalties for participating in illicit activities.

The following spreadsheet shows how different provinces and territories treat online and offline gambling spheres.

Gambling regulations in Canada vary depending on the activity type:

1. Sports Betting. Bill C-218, which was passed in 202,1 legalized single-game sports betting. You can place bets online and offline.
2. Lotteries. The government authorities allowed lotteries in 1969. Today, you can purchase tickets both from land-based retailers and on the Internet.
3. Poker. Playing poker online and offline is generally legal in Canada but with certain nuances. For example, Ontario residents may play online only with people within the province.
4. Bingo. Canadian online and offline bingo is legal and regulated by provincial governments. Charitable bingo has been allowed since 1900.
5. Horse Racing and Pari-Mutuel Betting. This gambling type has been legal for in-person betting since 1910. Online betting legality depends on the province.
6. Esports Betting. The 2021 Criminal Code of Canada amendments legalized online and offline e-sports betting.

We recommend you study your provincial legislation more precisely to be sure of a particular gambling form and type legality.

The Key Components of Canadian Gambling Regulations

Online gambling laws in Canada aim to create a safe environment for players and protect them from fraud and addiction problems. Federal and provincial authorities implement a set of rules and regulations to ensure this goal is met.

Licensing Requirements

Gambling platforms are legal in Canada only if they are licensed by provincial authorities. It affects both crown corporations and private operators. Unlicensed platforms are automatically illegal due to the Criminal Code of Canada norms.

AML & KYC Measures

Provincial gambling authorities oblige operators to follow anti-money laundering regulations and implement Know Your Customer procedures on their web resources. Such measures are essential for fighting money laundering, illicit activities, and underage gambling.

Data Privacy and Security

Canadian gambling authorities have strict requirements for providers regarding data security. Casino sites must offer a secure gaming environment with encrypted communications and safe payments. The law controls how gambling operators may use players’ personal information.

Players’ Rights and Responsibilities

You should play only on legal gambling sites in Canada. Identifying them is easy once you know what to look at. The main legality criterion is a license issued by the Canadian Gambling Authority. It may be a local gambling commission for crown corporation online casinos or iGaming Ontario for private operators that offer their services in the province.

Some international websites apply for a Kahnawake Territory license, which has been available since 1996. However, the local authorities’ decision to license gambling doesn’t fit with the federal legislative framework, so the legal status of such websites in Canada remains questionable.

Responsible gambling principles are extremely important for creating a safe and healthy online gambling environment. All legal platforms are obliged to provide responsible gambling tools by provincial authorities. It includes various self-imposed limits, a short break from gambling, and self-exclusion.

Choosing a secure casino site is essential for protecting your players’ rights. Gambling security comprises several components, including fair play, anti-fraud measures, and authority regulations compliance. Players at licensed online casinos are protected by Canadian law and can appeal to the provincial gambling authority in case of any issues.

Canada gambling laws create the required framework for industry development but still need improvement in harmonising regulations across provinces. While casino gaming and betting are mostly legal, exceptions and poorly regulated markets, from Ontario’s open market to more restricted regions like Prince Edward Island, may become a headache for a player. Anyone participating in gambling should understand the related provincial laws and the limitations they impose. Follow our blog for more insights on Canadian gambling law to ensure you engage with legitimate operators, and to avoid the penalties associated with illegal gambling under the Criminal Code of Canada.