Canadian Gambling Regulations in 2024

Understand the provincial autonomy and how it shapes gambling activities across Canada, influencing both land-based and online gambling sectors.

Updated: July 14, 2024

Is Gambling Legal in Canada? Gambling Laws

Gambling is legal in Canada and primarily governed by the federal Canadian Criminal Code, which prohibits most forms of gambling but allows provinces to regulate and manage their own gaming activities, both online and offline.

Each province has the authority to set its own rules and licensing requirements for both land-based and online gambling activities. This provincial control means that what is permissible in one region may not be allowed in another, providing a dynamic landscape for gambling enthusiasts.

History of Gambling Legislation in Canada

Gambling has been a part of Canadian society for a very long time, but it was mostly illegal until the late 1900s. The big changes started with the Criminal Code in 1892, which banned pretty much all gambling activities. However, over time, exceptions were made to allow some gambling for charities and religious groups, like raffles and bingo games.

In the mid-1900s, the provinces were given the power to run lotteries. This was a huge shift as it made lotteries legal under proper regulation. Provincial lottery corporations were set up to oversee and control these gambling activities responsibly. This paved the way for more gambling laws to develop over time.

The next major milestone was Bill C-218, passing in 2021. This law legalized single-event sports betting across Canada. Before that, bettors could only place parlay bets on multiple games at once, which was less favorable.  Bill C-218 targeted the underground illegal sports betting market by allowing regulated, safe options.

Importantly, each province could then set its own rules for sports betting based on local considerations. This allowed flexibility to meet the unique needs of different regions. Provinces now oversee casinos, online sites, sports books, and more with their own tailored laws.

Current Gambling Regulation

Gambling in Canada has many rules, with each province and territory making its own laws. Special authorities oversee gambling activities to ensure they follow the rules and are safe for Canadian players.

Province/Territory Rules

Every province and territory can create and manage its own gambling regulations. For example, British Columbia has the British Columbia Lottery Corporation, while Ontario has the Ontario Lottery and Gaming Corporation in charge. This allows each area to make rules that fit what locals want and need.

Online gambling may be allowed in one province but not another. Provinces like Quebec run their own online gambling websites and ensure they follow that province's laws. With so many different rules, players need to understand the gambling laws in their own area before playing legally.

Regulatory Authorities

Regulatory authorities play a big role in keeping gambling fair and safe across Canada. Groups like the Alcohol and Gaming Commission of Ontario (AGCO) and Kahnawake Gaming Commission are responsible for licensing and monitoring gambling operators. They enforce strict standards to protect players from being cheated and ensure fair games.

Authorities also require regular audits, financial reports, and responsible gambling measures. This creates a transparent and trustworthy environment for both players and operators.

Types of Legal Gambling

There are several different kinds of legal gambling activities that Canadians can participate in, depending on where they live. Each province has its own rules overseeing these gambling options to keep them fair and safe.

Casinos and Gambling Venues: Across Canada, traditional land-based casinos offer games like blackjack, roulette, poker, and slot machines. Each province allows and monitors these casinos through a regulatory body. Provincial gambling authorities strictly test and monitor the machines and games to ensure they are fair and working correctly.

Lotteries and Raffles: Provincial lottery corporations run large lottery games and raffles where people can buy tickets for a chance at winning cash prizes. Well-known examples are the national Lotto 6/49 and regional games like Lotto Max. Smaller local raffles by charities and community groups must also follow regulations set by the provinces.

Sports Betting: After recent law changes, single-game sports betting is now allowed and regulated at the provincial level. People can make bets on professional sports like hockey, football, soccer, and more through approved channels overseen by their provincial gambling commission. Horse race betting at racetracks is another longstanding legal option.

Regulations by Province and Territory

Gambling rules in Canada are mainly handled by each individual province and territory, leading to many different sets of regulations across the country. Every region has its own governing bodies and rules for both online and in-person gambling.

Ontario's Gambling Rules

In Ontario, gambling is regulated by the Alcohol and Gaming Commission of Ontario (AGCO). The Ontario Lottery and Gaming Corporation (OLG) oversees lotteries, casinos, and online gaming. As of April 4th, 2022, Ontario now allows private companies to offer online gambling through the system set up by iGaming Ontario. This includes betting on single sporting events and various online casino games.

You can only operate legally by getting proper licensing from these organizations, ensuring a controlled and safe gambling environment.

Western Provinces' Rules

Western provinces like British Columbia, Alberta, Manitoba, and Saskatchewan each have their own regulatory bodies overseeing gambling. In BC, the British Columbia Lottery Corporation (BCLC) manages all gambling, including online.

Alberta and Manitoba also have robust frameworks with Alberta Gaming, Liquor & Cannabis (AGLC) and Manitoba Liquor and Lotteries in charge of operations. In Saskatchewan, gambling is overseen by the Saskatchewan Liquor and Gaming Authority (SLGA), which offers lotteries and casino games.

Atlantic Provinces' Rules

The Atlantic provinces of Nova Scotia, New Brunswick, Prince Edward Island, Newfoundland, and Labrador are unified under the Atlantic Lottery Corporation (ALC) for lotteries and online gambling.

Nova Scotia additionally has the Nova Scotia Gaming Corporation, which specifically oversees casinos and video lottery terminals. Operators in each of these provinces need proper licensing to ensure regulated gambling.

Northern Territories' Rules

The northern territories of Northwest Territories, Yukon, and Nunavut have more limited gambling options than provinces. Gambling regulations in these territories are generally more relaxed but still require following local laws. Lotteries and smaller gambling activities are typically managed by local government agencies, providing some level of oversight.

Legal Gambling Age Across Provinces

The legal age for gambling in Canada is different across the provinces and territories. Some provinces allow gambling at 18 years old, while others require you to be 19.

This difference in legal ages means that in areas near provincial borders, some 18-year-olds may cross into the neighboring province to gamble since their age is lower there. Provinces set their gambling ages based on things like how mature they think people are at different ages, economic reasons, and trying to be consistent with the legal drinking age. However, there is no single national gambling age across Canada.

Advertising and Promotion Regulations

There are strict rules in Canada around how gambling companies can advertise and promote their services. These rules are in place to protect people, especially youth and vulnerable groups, from being negatively impacted by gambling advertisements.

Some of the key rules include:

  1. Gambling ads cannot be designed to appeal to or attract minors (people under 18). They can't use cartoons, youth language, etc., that might appeal to kids.
  2. Companies need your permission before sending you gambling promotions like emails or texts. They can't just send promotional materials to anyone.
  3. Ads must promote responsible gambling habits and include warnings about the risks of gambling. They often provide information on where to get help for gambling addiction.
  4. Gambling companies cannot target their marketing toward groups that may be more vulnerable to gambling harm, such as people who have had gambling issues before or minors.

The goal is to allow companies to advertise, but in a responsible way that doesn't enable or worsen gambling problems, especially among youth and at-risk populations. Organizations like the Canadian Gaming Association and provincial authorities enforce these advertising rules to protect consumers.

Online Gambling Legalities in Canada

Online gambling is legal in Canada, but the specific rules depend on which province or territory you live in. The laws around online gambling can be a bit complicated and differ across the country.

Provincial Regulated Sites

Many provinces now offer their own regulated online gambling websites and apps for activities like casino games, sports betting, poker, etc. Examples include:

Using these provincial sites is fully legal for residents of that province. The sites are overseen by the provincial gambling authorities to ensure player safety and game integrity.

Offshore/International Sites

Outside of the provincial sites, Canadians can also access and play on offshore online gambling sites that are operated and licensed outside of Canada. There are no federal laws that make it explicitly illegal for Canadians to use these international gambling websites. However, the legal status of offshore sites exists in a bit of a grey area. They are not strictly regulated in Canada the way the provincial sites are.

No matter which option you choose, it's advised only to use reputable, established online gambling sites and to gamble responsibly within your means. The laws aim to provide a safe environment for online gaming.

Financial Transactions and Tax Implications

Canadian players have legal options for moving money to and from online casinos. They can use direct bank transfers, online payment processors, and more to deposit funds for gambling and withdraw any winnings. This makes managing your money very convenient, in addition to the fun of online gambling. Some of the popular payment options used include Interac, Instadebit, iDebit, Paysafecard, and Bitcoin.

In Canada, if you get lucky and win money gambling, those winnings are not taxed since they don't count as regular income. However, if those gambling winnings earn additional money like interest, that extra income does get taxed. 

However, the tax rules are different for professional gamblers. If betting/gambling is your main occupation, especially sports betting on single events, then the government views your winnings as business revenue, which gets taxed accordingly.

Economic Impact and Usage of Revenue

Gambling activities like casinos, lotteries and racetracks generate billions of dollars in revenue across Canada each year. This money has a significant economic impact and the revenues are used by provincial governments to fund important public services and initiatives.

How Much Revenue Gambling Generates

The gambling industry is a major economic contributor in Canada. In recent years, gambling activities have generated around $12-15 billion annually in total revenues from casinos, lotteries, racetracks, and other gaming. The industry has more than doubled in size since the 1990s.

In addition to the direct gambling revenues, related hospitality and entertainment spending associated with gambling venues also provides an extra boost to the economy.

How Gambling Revenues Are Used

The gambling revenues collected by each provincial government do not just go into general funds. Instead, there are specific allocations and uses for the money:

So, while a large portion of the gambling revenues helps fund core provincial responsibilities like healthcare and education, the money is also directed strategically toward addressing gambling-related harms and enhancing community development.

Responsible Gambling and Support Systems

Gambling can be enjoyable entertainment for many Canadians, but it also carries potential risks of addiction and harm if not done responsibly. That's why Canada has many resources and initiatives in place to promote responsible gambling practices and provide support for those struggling with problem gambling issues.

Preventing Problem Gambling

The gambling industry in Canada is heavily regulated by provincial authorities to prevent and minimize problem gambling. Some of the responsible gambling measures include:

Governments, regulators, and support organizations work together on policies, research, and strategies aimed at intervening early with at-risk gamblers and promoting healthy gambling behaviors overall.

Help and Resources for Canadians

Canadians have access to various support resources designed to assist individuals struggling with gambling issues. Each province offers toll-free helplines for immediate support:

Support services include counseling, therapy, and self-help groups to guide individuals toward recovery. Online resources provide additional information and strategies for managing gambling addiction.

Organizations such as the Responsible Gambling Council offer educational materials and tools to help gamblers make informed decisions. These efforts collectively contribute to a safer, more supportive gambling environment in Canada.

The Future of Gambling in Canada

The gambling industry in Canada is expected to undergo some major changes in the coming years. These changes will impact gambling laws, the use of new technologies, and predictions for the gambling market overall.

Legal Changes and Proposals

There are discussions happening about updating Canada's gambling laws to make them safer and better regulated. Some of the potential legal changes being considered include:

Organizations like the Canadian Gaming Association are actively encouraging legal reforms. The goal is to provide clearer laws that keep gambling operators and customers safe.

Overall, the landscape for legal gambling in Canada seems headed towards more regulation, consumer protection, and provinces' greater control over the industry within their borders. However, the government is still proposing and discussing these changes.