Canada Online Gambling Regulation
Like in any other jurisdiction, Canada has its own set of rules that govern gambling within its territory. The country has a complex gambling landscape where legalities are concerned because regulations and legislation vary in individual provinces. Canadian residents can gamble online without the fear of prosecution.
Whether online gambling is legal or not, in Canada, is a question that keeps popping up now and then. The laws that govern online casinos are cloudy, and the matter has been considered as a grey area. It is illegal for companies to operate poker rooms or online casinos in Canada. The types of legalized gambling offered in Canada range from commercial casino operations and racetracks to smaller bingo halls, Video Lottery Terminals (VLTs), slot machines, and ticket lotteries. All legal gambling is regulated by the provinces and territories and therefore the available types of gambling differ across the country. The gambling scene in Canada is quite interesting. It could be said that a certain form of gambling is legal in each part of the country. This being said after the amendments of the Criminal Code in 1969 and 1985, each of the 10 provinces in Canada has its own gambling regulations. 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.
Complexity mostly arises from the country’s political system and territorial structure. The Great White North, as Canada is also known, consists of ten provinces (Ontario, Quebec, Nova Scotia, New Brunswick, Manitoba, British Columbia, Newfoundland and Labrador, Prince Edward Island, Saskatchewan, and Alberta) and three territories to the north (Yukon, the Northwest Territories, and Nunavut).
Each of these territorial divisions has its own laws that regulate or prohibit different forms of gambling. One exception is made for horse racing, which is regulated on a federal level. Some provinces like Ontario, British Columbia, Manitoba, and Quebec, have already introduced certain forms of regulated online gambling.
Like the United States, Canada is home to different indigenous tribes, many of which have opted to get involved in the gaming industry. It is not unheard of for such tribes to operate casinos within their reservations without authorization from the provinces.
Canada is also home to one of the largest online gambling regulators in the world, the Kahnawake Gaming Commission. Let’s look more closely at how Canada’s gambling sector is regulated on a federal and provincial level.
Federal Level Regulations under the Criminal Code of Canada
Let us start by clarifying there is no division between the regulation of virtual and landbased gambling in Canada, i.e. individual rules for online gaming are lacking. Gambling activities in the country are governed on a federal level under the Criminal Code of Canada, and more particularly by Sections 201 through 206.
This federal statute declares that all forms of gaming, wagering, and lotteries are illegal in the country. Section 204 of the Criminal Code makes an exception for pari-mutuel horse race betting which is regulated by the Canadian Pari-Mutuel Agency, a unit of the federal Department of Agriculture.
According to Section 201 of the Code, “every person who keeps a common gaming or betting house is guilty of an indictable offense and liable to imprisonment for […] no more than two years”. Guilty persons can also be punished based on summary convictions. Participation is illegal as well.
Section 202 of the Criminal Code tackles sports betting, bookmaking, and pool-selling. It declares that any individual who knowingly allows a place under their control to be used for recording or registering of wagers or selling pools is committing an offense.
The same goes for advertising such activities, placing bets on behalf of another person or inducing others to partake in them. Section 204 (c) of the Code makes an exception for pari-mutuel wagers on running, trotting and pacing horse races. Pari-mutuel wagering on horses is governed by the regulations of the Minister of Agriculture and Agri-Food.
Another “serious offense” is outlined in the Code’s Section 206, which has to do with illegal lottery tickets and games of chance. Section 207 contains what constitutes the “permitted lotteries”, i.e. those operated by the governments of individual provinces and licensed charitable and religious organizations.
Activities That Constitute Gambling according to the Criminal Code
According to the Criminal Code, the category of gambling activities comprises bingo, casino games, lotteries, slot machines, poker, video lottery terminals (VLTs), sports betting, and other card games. The Code also prohibits some activities that are not necessarily seen as gambling from the perspective of laymen.
However, an individual who hosts or offers competitions that do not require payments to enter is not in violation of federal laws. There are also fine distinctions between skill games, games of pure chance, and games that combine both skill and chance.
Skill games, where the element of chance is entirely absent, are not considered illegal under Section 206 of the Criminal Code. They can be offered legally without obtaining permission from the authorities.
Canadian federal laws do not recognize the concept of skill as a dominant factor. Thus, poker is still considered an “illegal lottery”. Skill is a major factor in the game but there is still an element of chance that results from the random dealing of the cards.
Gambling Regulations in Canada’s Individual Provinces
Although many forms of gambling are listed as illegal under the Criminal Code, the federal government gave individual provinces the exclusive authority to enact their own gambling laws and regulations in 1985. The bottom line is gambling is against the law unless it is conducted and regulated by provincial governments. They can organize, control, and carry out gambling within their territory under Section 207 of the Code.
This further increases confusion because the gambling laws, regulatory bodies, registration procedures, and permitted activities differ from one province to another. Below, we cover in brief the gambling rules for each province and territory in Canada.
Alberta Regulations
Albertans can wager on a broad range of legal landbased gambling products, including slot machines, casino table games like blackjack and roulette, poker, bingo, and lotteries. Online gaming remains unregulated for the time being.
However, the province has already taken some steps toward introducing online regulations. Albertans are not legally prosecuted for gambling at websites licensed in offshore jurisdictions. Landbased gambling is regulated under the Gaming, Liquor and Cannabis Act.
The Alberta Gaming, Liquor and Cannabis Commission oversees the authorized gambling operators in the province. The Commission consists of a chief executive and up to nine members appointed by the Lieutenant Governor. It licenses, regulates, investigates, and audits registered gaming operators.
The agency has adopted a charitable gaming model, which is to say only religious and charitable organizations can conduct gambling operations. Private entities can only supply gaming software and services to authorized charity organizations.
Under the terms of the Gaming, Liquor, and Cannabis Act, minors cannot enter licensed gambling facilities like casinos and racing entertainment centers. The same goes for intoxicated individuals who cannot partake in gaming activities and lotteries held in licensed facilities (Part II, Section 37.2).As for the legal gambling age, it is 18 years old in the province of Alberta. The AGLC is not accepting new license applications for casinos as of January 2020.
British Columbia Regulations
Located in the southwestern region of the country, British Columbia regulates its gambling industry under the provisions of the Gaming Control Act of 2002. The gambling sector in BC is thriving, with total revenue of CA$1.4 billion for 2017 and 2018.
Residents of the province have access to a variety of traditional, i.e. landbased casinos, most of which are located around the capital Vancouver. Individuals must be at least 19 years old to gamble legally. Online gaming is also permitted via licensed websites such as PlayNow.
The Gaming Control Act allows for one-time betting events for social purposes, charitable gambling, and state gambling. BC authorities can establish casinos operated by a state corporation. The allowed products include horse race betting, lotteries, slots, fundraising draws, and casino games like blackjack and roulette.
Gambling activities fall under the scrutiny of the Gaming Policy and Enforcement Branch of the Ministry of Finance (GPEB). The GPEB issues licenses to approved gambling operators and oversees them to ensure their compliance. This entity is responsible for the overall integrity of gaming and horse racing in British Columbia. It is governed by a general manager appointed by the Minister of Finance.
Manitoba Regulations
Gambling in the province of Manitoba is regulated under two key laws, the Liquor, Gaming and Cannabis Act and the Manitoba Liquor and Lotteries Corporation Act. The second statute outlines the rules that govern the operation of authorized lotteries and video lottery terminals in the province.
There is a limited number of landbased casinos here, including the Sand Hills Casino in Carberry and the Swan Lake First Nation Gaming Center in Headingley. Manitoba residents have the option to gamble online at locally authorized gaming sites.
One example is PlayNow (launched 2013) which is operated by the British Columbia Lottery Corporation (BCLC) in partnership with the local provincial authorities. The gambling industry in this province is regulated by the Manitoba Liquor, Gaming and Cannabis Authority (MLGCA), which has a minimum of seven board members, a chairman, and a vice chairman.
In relation to gambling, the MLGCA is mandated with regulating gaming events and ensuring the integrity of gaming and lotteries in the province. It also performs background checks on licensed gaming operations. Manitoba players can engage in gambling activities legally as long as they are at least 18 years old.
Ontario Regulations
As one of the largest provinces in Canada in terms of territory, economic development, and population, Ontario has a thriving gambling sector. Residents have a choice from a wide range of gaming products, including bingo, slot machines, card games, and lotteries. Playing online is also possible at the authorized website of PlayOLG.
The gaming sector in Ontario was shaped by two key statutes. The first one is the Gaming Control Act of 1992, which outlines the legal forms of gambling and the requirements authorized operators must cover.
To be more specific, Sections 10 and 11 of this statute deal with the registration and conditions for gaming assistants and suppliers while Sections 19 through 28 explain the different aspects of the regulation process.
The second statute that governs gambling activities in this province is the Ontario Lottery and Gaming Corporation Act of 1999. This one outlines the general principles of operations of the local regulatory authority, the Ontario Lottery and Gaming Corporation (OLGC). It contains information about the powers of this agency, its requirements for gambling sites, and its funding.
Quebec Regulations
Residents of Quebec, who are at least 18 years old, have a choice from several state-controlled landbased casinos but online gambling is also available. The main statute that governs the field of gaming in this French-speaking province is Loi sur les loteries, les concours publicitaires et les appareils d’amusement,which translates roughly as the Act on Lotteries, Public Contests, and Amusement Machines.
It provides important information about what forms of gaming are legal in Quebec along with detailed descriptions of each of them. There is also information on the licensing process, the obligations of the licensees and the regulator, and the penalties imposed on violators.
The Act also outlines the maximum number of video lottery machines (including slots and any other games governed by a computer) authorized racetracks and state-controlled casinos are permitted to operate. The Montreal racetrack, for example, can hold no more than 125 machines while the racetracks in Quebec City and Trois-Rivières are entitled to a maximum of 100 and 50 machines, respectively.
There are two regulating authorities in Quebec, the first one being Regie des alcools, des courses et des jeux. It regulates the operations of companies in the sector of gambling, public lotteries, horse racing, and alcohol.
There is also the Quebec Lottery Corporation (Societe des loteries du Quebec). Apart from regulating gambling halls, lotteries, and bingo games throughout the province, this entity possesses the gaming equipment in them.
Nova Scotia Regulations
Nova Scotia casino buffs can engage in gaming activities as long as they are at least 19 years old. This eastern province is home to a broad network of landbased gambling halls, dominated by slot machines. Online casinos are also permitted.
Atlantic Lottery (Loto Atlantique) is the only licensed gambling site in Nova Scotia. However, residents have unrestricted access to various Canada-friendly offshore casinos since the local authorities do nothing to ban such websites. Atlantic Lottery offers online bingo, instant-win games, online lotteries, and sports betting.
The gambling sector in Nova Scotia is controlled under the provisions of the Gaming Control Act. It contains key information on licensing procedures, the measures in case of violations, rules of play, and the admission rules for individuals entering the gaming halls. Section 100 stipulates that “no person under the age of majority [19 years old] shall play a game in a casino”.
Gaming licenses in Nova Scotia are issued by the local Alcohol, Gaming, Fuel, and Tobacco Division of Service. It also handles disputes, processes complaints, and scrutinizes all activities in the field of gambling.
Saskatchewan Regulations
The prairie province of Saskatchewan is home to regulated landbased and online gaming sectors, open to all residents who are at least 19 years old. The province also birthed Canada’s first casino run by indigenous people, the Bear Claw Casino & Hotel, governed by the Saskatchewan Indian Gaming Authority.
Several pieces of legislation have shaped the province’s legal gambling landscape, but the most important one is the Alcohol and Gaming Regulation Act of 1997. It outlines the basic rules on gambling, the general provisions regarding permits, and the fees operators are required to pay.
The permitted forms of gambling in Saskatchewan include conventional casino games like roulette and blackjack, Texas hold’em poker, slot machines, raffles, bingo, and horse race betting. Players are not taxed on their profits unless they are professional gamblers.
Online gambling was possible at the Northern Bear Casino but it shut down in 2014 for financial reasons. The Saskatchewan gambling industry is overseen by the Saskatchewan Liquor and Gaming Authority (SLGA) but there are also indigenous regulators, such as the afore-mentioned Saskatchewan Indian Gaming Authority.
New Brunswick Regulations
New Brunswick residents and visitors can legally participate in several forms of gambling, including lotteries, video lotteries, harness racing, and charitable gaming. The province is home to two landbased casinos, Casino New Brunswick and Grey Rock Casino, where players can enjoy slots, table games, and poker.
New Brunswick’s field of gaming is regulated under the provisions of the Gaming Control Act of 2008, which states that persons should be “registered as suppliers or gaming assistants” (Section 86 (f)) to legally provide such services.
The Act also offers insights into authorized lottery schemes, the regulation on authorized gambling providers, and registration. Other than that, the sector is regulated by the Gaming Control Branch of the Department of Public Safety.
Prince Edward Island Regulations
As in other provinces, gambling in Prince Edward Island (PEI) is a common activity. Roughly 4/5 of the adult population participates in gaming at least several times per year as reported by the local Lotteries Commission in September 2008. Lotteries, charitable gaming, and instant-win tickets rank among the most widespread forms of gambling.
There are five or so landbased casinos but playing online is also possible. The minimum gambling age in the province is 19 years old. The main law to govern betting activities here is the Lotteries Act, which states that every individual who “contravenes a provision of the Act […] is guilty of an offense and liable on summary conviction” (Section 18). The fines range from CA$2,000 to CA$10,000. Gaming activities are overseen by the Prince Edward Island Lotteries Commission.
Newfoundland and Labrador Regulations
The newest of the ten Canadian provinces, Newfoundland and Labrador, has no landbased casinos for the time being. While casino-style landbased gambling is still not legal here, residents can participate in lotteries or bet on horse and harness racing.
There is also the option to legally engage in online gambling via the website of the Atlantic Lottery Corporation, which offers its products with the permission of the Newfoundland and Labrador provincial government. Its range of services spans instant-win games, 6/49 lotteries, keno, bingo, and sports betting.
The Consumer Affairs Division, Consumer and Commercial Affairs Branch of Service NL issues permissions for games of chance, bingo, lotteries, and card games but only if the applicants are non-profit or charitable organizations (check Lottery Definition section).
Gambling in Canada’s Three Territories
Apart from its provinces, Canada has three territories, Yukon, Nunavut, and the Northwest Territories, whose governments’ powers are assigned by the Canadian Parliament. These are beautiful regions with a low-density population, which creates perfect conditions for the development of tourism.
However, the gambling industry here remains largely undeveloped, with only a single landbased casino (Yukon’s Diamond Tooth Gertie’s Gambling Hall) in all three territories. The Diamond Tooth is run by the non-profit organization Klondike Visitors Association, which reinvests all its profit back into Dawson City where the casino is located.
Other than that, residents of the territories can gamble on lotteries, operated by the Western Canada Lottery Corporation. The latter is a non-profit organization that operates with the permission of the Alberta, Manitoba, and Saskatchewan governments. Charitable and religious groups can legally offer one-time bingo and sports draft lotteries. Some venues in the territories also offer video lottery terminals.
As for online casino gambling, there are no such websites registered in any of the three territories. The locals can participate in sports draft lotteries via the SportSelect website. With that in mind, residents are not restricted from accessing casino sites licensed in foreign jurisdictions where they have a wealth of gaming options to choose from.
Gambling Advertising, Taxes, and Consumer Protection
Each provincial government in Canada is permitted to exercise individual control over the selection of available gambling products, the places where said products are legally offered, and the way they are marketed.
Advertising rules vary from one province to another. Ontario, for example, prohibits certain advertisements under Section 8 of Bill 152, which states that “No person shall advertise an Internet gaming site that is operated contrary to the Criminal Code”.
As for taxation, recreational players in most provinces are not taxed on their gaming profits unless they fall into the category of professional gamblers.
All provincial lottery corporations tackle social responsibility in their regulatory policies. Management staff and front-line employees must undergo mandatory training on responsible gambling and inform their players how to keep their gaming activities in check.
Self-exclusion programs are available to customers who are already in trouble. The self-exclusion program in the province of Ontario, for instance, implements facial-recognition technology to detect problem gamblers in landbased venues.
Types of Regulated Online Gambling Operations in Canada
There are no private landbased or online casinos in the Great White North. Licenses cannot be granted to private online gambling operators. They can penetrate the local market through cooperation with government companies, which exist in all Canadian provinces in the form of government-owned lottery corporations and gambling venues.
The private companies assume the role of suppliers of software and provide the technical support needed to conduct the gambling activities. They must first enter into agreements with the provincial lottery corporations before they begin to operate.
In turn, the provincial governments and regulators conduct an obligatory evaluation on these operators to ensure they meet the criteria for integrity and reliability. The most prominent examples of gambling sites regulated from within Canada include SportSelect, the Atlantic Lottery, PlayOLG,and PlayNow. The provincial regulators run registries where players can check for the authorized service providers.
Legality of Offshore Gambling Operators
The choice of locally regulated options is obviously quite limited and so is the range of gaming products. However, Canadian players enjoy unrestricted access to the websites of foreign gambling operators who service them under licenses granted in offshore jurisdictions like Malta and Gibraltar.
Furthermore, there is nothing in the Criminal Code to suggest the operation of such websites is illegal. The Code only states that gambling is illegal in the country unless it is regulated from within a Canadian province.
Individual players face no prosecution if they gamble at foreign-licensed sites. Quebec is the only province that attempted to restrict the access to offshore websites under Chapter III of Bill 74.
Section 260.34 states that Loto Quebec “shall draw up a list of online gambling sites not authorized under the laws of Quebec and provide the list to the Regie des alcools, des courses et des jeux, which shall notify it to Internet service providers”.
Section 260.35 says ISPs who receive this list must block access to the websites it contains within 30 days. Those who failed to comply were reported to the Quebec Lottery Corporation.
However, the Quebec Superior Court upheld Bill 74 as unconstitutional after several of the largest ISPs started legal proceedings in the summer of 2016. The effects of this bill were not within the scope of Quebec’s jurisdiction, the Court ruled out.
Operators Overseen by the Kahnawake Gambling Commission
The province of Quebec is home to the Kahnawake Mohawk Territory, a First Nation reservation of the Mohawks of Kahnawake. This is a worldwide-recognized jurisdiction when it comes to the issuance of online casino licenses.
The nation of these indigenous people has passed individual gambling laws applicable within its territory and provides licenses to private operators. One unique thing here is that there are separate regulations for licensed online and landbased activities.
Online gambling in the reserve is subject to the Regulations Concerning Interactive Gambling (RCIG). License applicants for interactive gaming must provide the Commission with all the necessary documentation that contains their business, personal, and financial information.
Part V, Section 29 (h) states they must contribute “an application fee in the amount of $30,000”.Another condition stipulates that licenses are granted only on condition the premises of the co-location facility are situated within the Mohawk Territory of Kahnawake. Other than that, the operators can be registered in another jurisdiction.
Providing live dealer games requires a separate authorization where the fee is $25,000. The reservation also has its own data center, the Mohawk Internet Technologies.
The Commission issued licenses to US-friendly online casinos in the past but pulled out of the US market in 2016 after reaching an agreement with the authorities of New Jersey. It ordered all licensees to withdraw their operations from the United States.
Online gaming is quite a new phenomenon; it has only been in existence for just over a dozen years. This industry has however grown into a well-organized; security-obsessed one that does a good job of self-monitoring. There is quite a lot of money at stake in this industry. With revenues clocking over 20 billion worldwide in 2011 and projected to surpass the $500 billion mark by 2015, the industry has brought itself some respectability.
Online gambling, both in Canada and many other places all over the world has experienced rapid growth with new sites popping up every few days. Legislation on the issue of online gambling is quite sketchy and a little unsure truth be told. Most sites exist on unclear legal terrain.
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The growth of online gambling has seen different countries develop different approaches to legislation. The UK for instance has taken the taxation and regulation approach. The Gambling Act of 2005 was set up to allow operation of online gambling sites in the UK as long as they are regulated and taxed under law. In the US however, the opposite route has been taken. The government has made attempts at eliminating online gambling, indirectly, by making gambling transactions using US credit cards illegal. Canada however has not moved policy in either direction. Online gambling in Canada has been in a bit of grey area we might say. Until the 1960s Canada was always anti-gambling, but after this, the government granted the decision to legalize gambling to individual provinces. This led to the construction of casinos and lotteries in some areas. Whether or not these changes legalized online gambling is a matter of speculation. However for now you may be able to enjoy online gaming without bother from the government.
Important facts on Online Gambling Legalization in Canada
1. The criminal code
Although part 4 of the criminal code makes operation of commercial gaming enterprises an offence, it was only enacted to deal with the traditional forms of gambling. However, in some provinces this has been applied to many forms of internet gambling. The wording might be a bit more complicated than this but the general perception is that this code does not make it illegal unless it falls directly under recognized sections of the code. This is the basic premise upon which online casinos continue to thrive legally.
2. No Charges
One fact that stands out is that the courts in Canada have never charged a single person with the crime of online gambling. The closest scrape that this industry came to with the law was when the attorney general declared all poker rooms in Indian reservations and servers hosting online casinos to be illegal. However, since the proclamation was made, no charges have been laid and the servers continue their operation within Canadian borders.
3. Canadian law and United States law
While Canada has regulations allowing provinces to license online casinos, the US does not grant its states the rights to run gambling sites. As mentioned above the US has in fact tried to stifle online gambling through some prohibitive laws. Canadian laws give their provinces the right to allow, license and operate casinos as they please. Both British Columbia and Québec governments now run gaming casinos.
4. Poker
Well, if you are a poker player, you are aware of the numerous online poker sites available in Canada. Other than the sites hosted on Indian reservations, none of these sites are hosted from within Canada but this has not hampered their availability. No laws have been passed prohibiting people from gambling on these sites therefore making them not necessarily illegal.
5. Sports Betting
Under US law it is a legal offence to bet on sporting events online but this is not the case under Canadian law. Canada allows parlay bets of over three matches only. However, efforts are being made to have this restriction removed from the criminal code thereby permitting betting on single sporting events. More information on this restriction can be found in The Criminal Code.
6. Taxes
Tax laws in Canada, with regards to online gaming are closely similar to those in the United Kingdom and Ireland. The tax laws dictate that proceeds gained from betting cannot be taxed unless they are deemed to have been gained through transactions that are business oriented. If for instance you are a professional poker player, then your winnings may be taxed, otherwise if you are just playing for fun, then your proceeds should be tax free.
Regulatory Authorities in Online Gaming
Regulatory bodies are generally there to ensure that stake holders in a given industry uphold fair play. In gaming, they are there to ensure that casinos conduct business fairly. These regulators govern the bookmakers and deal with any arising issues. Should a site break any of the set regulations, the regulatory body has the power to pull its license and make it cease operations.
Canada Online Gambling Laws
Currently, online gaming regulation is done by individual provinces. The Kahnawake Gaming Commission governs all gambling activities within the Mohawks’ reserve basing on sovereignty. Canada’s constitution recognizes the activities of the Mohawks, (read, gaming) as an aboriginal right and therefore the KGC is well within its ambit to provide regulation of the same in the reserves. These regulations follow three principles: that operation within Kahnawake is only limited to suitable persons and entities; that the games on offer are fair and that winners are paid.
Canada Online Gambling Regulations
The question of whether playing online is illegal still remains unclear. Until concise and clear laws are enacted, people still continue to play at online casinos every day. Considering that no one has ever been prosecuted, besides that fact that shutting down a casino would be impossible without a well structured set of laws, operation of casinos still continues within many jurisdictions.
Canada Online Gambling License
The bottom line therefore, is that you will not get in legal trouble for gambling online in Canada. Before playing at a casino, it is always prudent to double check their legality and track record. Online gaming however, will not get you into legal trouble.