Online Gambling Canada Law
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The online gaming industry in Canada was hugely affected in 2016 when NetEnt, one of the leading developers of online software announced that it would no longer supply its products to online casino brands in Canada. UK online gaming giant, William Hill left the Canadian market on the 10th of May 2016 due to regulatory reasons and informed. These jurisdictions are still by and large involved in online casino regulation. But over time, regulation of online gambling, and the development of law surrounding online gambling, has become an area of interest for larger economic powers. Below is an overview of how online gambling is handled in a variety of major international jurisdictions.

ASome gambling commissions (who ensure gambling sites are operating legally) have rules stating that gambling sites cannot accept players from a specific country unless they’re licensed to operate there.
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.
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.

Unless you’re from the Great White North, you might not consider it Canada to be a gambling mecca. But both land-based and online gambling are in full swing, sanctioned by provincial gambling laws in Canada.

The landscape features nearly 100 casinos, and 38,000 VLTs fill in the gaps. Punters can submit their parlays at lottery retailers or online, and bingo, charity gambling, and homegrown online gambling sites for sports and casino gaming are all on the approved list.

Like many countries, Canada’s gambling laws have some clear-cut provisions, as well as some gray areas left to interpretation. So, we’ll do our best to demystify the situation.

We’ll touch on some game-changing judicial decisions too. As Canadian gambling legislation is now in the provinces’ hands, you’ll soon see what each has to offer and the specific Canada gaming laws in play.

If you look at the history books relating to legal gambling expansion throughout Canada, they focus on 1892, 1969, and 1985. But we’re going to add 1976 to the list as well.

1892 – The Criminal Code outlaws gambling under the section “Offenses against religion, morals, and public conveniences”
1969 – The Criminal Code was initially altered to allow for lotteries that raised funds for worthwhile causes
1976 – Sports lotteries were introduced
1985 – The federal government turned control over to the provinces for gambling activities, including lotteries and lottery schemes, which cover computer, video devices, slot machines, and horse racing wagering over the phone

The Criminal Code was the be-all, end-all of Canadian gambling legislation for decades. The 1969 move to approve lotteries got the ball rolling in the other direction.

We include 1976 because sports lotteries have been a mainstay in the country since then. Although betting is exclusively parlay-based, players have plenty of access through provincial-governed programs that extend to retail locations and, now, online betting as well.

1985 took Canada’s gambling and online gambling laws to a new level. Although the first gambling venue, Diamond Tooth Gertie’s, popped up in Yukon Territory in 1971, the post-1985 era prompted the casino boom.

Winnipeg’s Crystal Casino was the first government-owned casino, opening its doors in 1991. It didn’t even have its own structure but instead occupied the Fort Garry Hotel’s seventh floor. Manitoba now has five other gambling venues, but the historic Crystal Casino’s reign was short. It closed in 1999.

1901Charity raffles and other non-profit gambling approved

1917Horse racing temporarily suspended

1920Horse racing resumed with pari-mutuel wagering

1974First lottery emerged since the 1969 change to the Criminal Code – its purpose was to raise funds for the Olympics

1985Gambling legislation transferred from the federal government to the provinces

1985Provinces allowed to run lotteries and lottery schemes, including gambling on computers, video devices, slots, and phone betting for horse racing

1991VLTs approved in eight provinces (not in Ontario and British Columbia) for establishments with liquor licenses

1991Crystal Casino, the first commercial casino, opened in Winnipeg

1993Casino de Montréal opened and is now the largest casino in Canada

1996Online gambling introduced in Canada; the Mohawk Territory’s Kahnawake Gaming Commission became the first online casino regulatory agency

1997Sports Interaction launched and is still Canada’s national online gambling site through Mohawk Online (Mohawk Council of Kahnawake

Online Gambling Laws in Canada

Canada’s online gambling laws are both straightforward and confusing.

On the one hand, online gambling, whether sports betting or casino gaming, is legal as long as the provider is licensed within the country. But on the other hand, Canadians use plenty of offshore online sportsbooks and casinos.

While it’s illegal to operate an online casino in Canada without a license, nothing is spelled out explicitly prohibiting Canadians from using non-licensed services. Many people do, without penalty. No one has been prosecuted for using an out-of-area gambling website.

There are licensed Canadian online gambling sites that operate within the country. Sports Interaction was one of the first and is still going strong. Although it’s categorized as a sportsbook, players can take advantage of casino games as well.

Additionally, Canada is a unique country with its online gambling presence. As the provinces control the gambling and online gambling, most have their own virtual service, like Quebec’s Loto-Quebec or Alberta’s Play Alberta.

Province-run gambling sites include casino gaming, instant lottery, and sports betting. Not all residents are enthused about these services.

The in-region sites tend to have just a small sample of games compared to competitive offshore online casinos. However, new betting opportunities are consistently added, and Loto-Quebec even has some millionaire-makers in its virtual slot banks.

Canadian punters tend to “virtually” leave the country to place bets because Canada’s gambling laws don’t account for straight bets. Since 1976 when sports lotteries emerged, betting has been restricted to parlays.

Aside from Sports Interaction, there are provincial-approved betting services across the country. The national program is called Sport Select, although it’s known by different names, depending on the location.

Sport Select usually operates in conjunction with lottery retailers, and some provinces have extended the service to mobile players. Hence, it falls under both gambling and online gambling legislation in Canada.

Canadians appreciate more than just online sports betting, though. As we mentioned, the majority of provinces host their own online gambling sites featuring casino games, like slots, table games, virtual scratch cards, and lottery-type gaming.

Province-run online betting sites are geofenced. Players can use their mobile devices to play from home or anywhere in the region but will lose connectivity when they cross into another jurisdiction.

Summary of Canada’s Online Gambling Laws

Online casinos and sportsbooks licensed in Canada are legal.
Sport Select is the national sports betting program, allowing for parlays in retailers and some provinces to provide online access.
It’s illegal to operate an online casino in Canada without a license, but nothing is spelled out regarding players using outside online betting services.
Most provinces have dedicated full-service gambling sites for residents but are geofenced, so Canadian punters in other areas can’t access the service – they have to stick to their local website.

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Online Casino Law Canada