Gambling Laws in Canada: A Clear Overview of the Rules

Is Online Gambling Legal in Canada?

To give a straightforward answer, yes, online gambling is legal in Canada. Gambling became legal in the country in 1970 when the federal government passed amendments to the Criminal Code. 

These new regulations allowed provinces to control and conduct betting activities. To date, that’s how the Canadian online gambling industry operates. Notably, the amendments led to the launch of lottery systems and casinos. As time passed, many provinces expanded their options to include sports betting. 

Each province is responsible for licensing online casinos and bookmakers within its borders. However, offshore gambling sites are still accessible in Canada. No federal laws prohibit individual players or bettors from using these sites. As a result, Canadians can enjoy both local and international betting platforms.

Canadian Gambling Laws

Now that we’ve answered the main question about the legal status of online gambling in Canada, let’s take a closer look at the laws governing the industry. 

The Criminal Code of Canada

Amended in 1970, the Canadian Criminal Code is crucial in regulating gambling activities across the country. It permits provinces to regulate online gambling operators. Specifically, it allows lotteries, casinos, horse racing, and others. Certain forms of gambling are still prohibited under the Criminal Code. These include unlicensed gaming operations and unauthorized lotteries.

Canada recently made a major change to its gambling laws by approving single-event sports betting. Known as Bill C-218, the amendment was passed by Parliament and received Royal Assent in June 2021. Before it, sports bettors in the country were limited to parlays, which required wagering on multiple outcomes. That comes with a higher risk. With single-event betting, you can now bet on individual games with a better chance of winning.

Gambling Laws by Province

As a Canadian gambler, your location will determine the rules and regulations you must follow. We’ve detailed the laws for each state below. 

Alberta

In Alberta, gambling activities are regulated by the Alberta Gaming, Liquor and Cannabis Commission (AGLC). The province offers a variety of gambling options, including casinos and lotteries. Its standout platform is PlayAlberta.ca, a state-owned online casino and sportsbook.

British Columbia

The British Columbia Lottery Corporation (BCLC) is in charge in BC. If you reside in this province, you can play games at both online and land-based casinos. Also, there’s PlayNow.com, a government-operated platform with games and sports betting.

Manitoba

Similar to British Columbia, Manitobans have PlayNow.com as the go-to gambling website. The platform exists through a partnership between the MB Liquor and Lotteries Corporation and the BCLC. Thanks to this, the province allows different legal online gambling services. Casinos, lotteries, and sportsbooks are permitted.

New Brunswick

The Atlantic Lottery Corporation (ALC) oversees gambling operations in New Brunswick. This body serves multiple Atlantic provinces and allows lottery games, sports betting, and a few other select options.

Newfoundland and Labrador

If you’re a Canadian gambler in this province, your options are mainly lotteries and sports betting managed by the ALC. Casino games are very limited.

Northwest Territories

Here’s another Canadian province where gambling activities are minimal with the ALC in charge. That said, it’s worth mentioning that charitable gaming is permitted under local regulations.

Nova Scotia

Gambling is legal in NS thanks to regulations from the Nova Scotia Gaming Corporation. The provincial government allows lotteries, casinos, and sports betting, and the ALC manages everything.

Ontario

Without question, Ontario has the most advanced gambling market in Canada. The province regulates sportsbooks and casinos through the Alcohol and Gaming Commission of Ontario (AGCO).

Based on our findings, gambling in the region expanded with the launch of iGaming Ontario in 2022. It made OT the first Canadian province to have an open market with international online casinos and betting sites. Many other CA provinces look to Ontario as a model of how they want their industry to be. 

Prince Edward Island

Gambling on Prince Edward Island is limited to lotteries and sports betting through the ALC. Unfortunately, there’s no dedicated online platform if you reside in this location.

Quebec

After Ontario, Quebec is another province with favourable iGaming laws and a booming industry. The region operates Loto-Quebec, which includes the Espacejeux platform for online gambling. Bettors and players in QC can enjoy online casinos, poker rooms, and lotteries, all regulated by Loto-Québec.

Saskatchewan

Saskatchewan was one of the earliest provinces to legalize online gambling in 2020. The provincial government launched its online gaming platform, PlayNow.com, in partnership with the BCLC. Online casino games, sports betting, and lottery games are permitted. 

Yukon Territory

In Yukon, gambling options are limited to lotteries and small-scale charitable gaming. It’s similar to Prince Edward Island in that no provincial online casino platforms exist.

Kahnawake Gaming Commission

The Kahnawake Gaming Commission (KGC) is always important when discussing Canadian gambling laws. Established in 1996, this body works independently from provincial authorities and regulates several online casinos, poker rooms, and sportsbooks in Mohawk territory in Quebec. 

Notably, the KGC plays a crucial role in establishing a legal framework for online gaming and betting. It allows operators to offer gambling services, but only under strict regulations. This commission is significant as it was one of the first regulatory iGaming bodies in CA. While its activities exist outside the provinces, it remains a trusted authority among international operators targeting Canadian players.

Important Information for Canadian Gamblers

The dynamic nature of the CA gaming industry may make things confusing for bettors and players. Thankfully, our explanations of the different rules in various provinces will clarify the situation. Here are other key details about gambling in Canada you’ll want to know. 

How Frequently Do Canadians Engage in Gambling?

Gambling is quite popular in Canada, and millions participate in lotteries, online casinos, and sportsbooks. According to stats from MadeInCA, the average Canadian wagers approximately C$6.75 monthly on gaming and betting.

Furthermore, 6 out of 10 Canadians gamble, and the country’s iGaming market is predicted to grow by 6.39% before 2029. This increase in gambling has prompted calls for more responsible gaming practices among residents. 

Can Canadians Access International Gambling Sites?

Yes, Canadians can access offshore online casinos without legal restrictions. Many international operators around the world accept Canadian users. These offshore sites are also favourites for CA gamblers who need more betting options.

Are Deposits and Withdrawals from Online Casinos Legal for Canadians?

Canadian gambling law permits residents to deposit and withdraw from gaming sites, including local and international online casinos. This is possible through several payment methods, including debit cards, e-wallets, and cryptocurrencies. 

Are Casino Winnings Taxable for Canadians?

In Canada, gambling winnings are typically not taxable. Unlike in countries like the United States, Canada doesn’t rank casino profits as taxable income for most players. This is clearly stated in paragraph 40(2)(f)(ii) of the Income Tax Act. 

However, there is an exception. If a player or bettor relies solely on gambling as a livelihood, then winnings may be subject to income tax. In such cases, the CRA will classify the winnings as business income.

Are Canadian Dollars Accepted at Online Casinos?

Many online casinos in Canada and international sites support CAD. This means bettors don’t have to worry about currency conversion fees and other inconveniences. In addition to supporting CAD, the platforms have local payment methods like Interac. 

The Evolution of Gambling in Canada

The gambling industry in Canada has witnessed several shifts over the years. In the past, most gambling activities were prohibited under the Criminal Code. Only horse racing and charitable lotteries were allowed. 

However, things changed in the 1970s when provinces got the go-ahead to license and regulate gambling. The new development led to provincial lotteries and land-based casinos, which became a source of revenue for the country. 

By the 2000s, platforms like PlayNow.com and Espacejeux launched. As such, gamblers now had convenient options to bet from anywhere. Ontario’s big move in 2022 to welcome international online gambling providers marked a new era for gambling in Canada. Many provinces are set to follow OT’s example, which will only make the country’s gambling market grow bigger.

Conclusion

Canada’s iGaming laws strike a balance between federal and provincial requirements. The bottom line is that gambling is legal, and each province is responsible for regulating activities within its borders. At the same time, offshore platforms are allowed to operate. This setup is commendable, as it gives Canadians many options to choose from.