Understanding Canada’s gambling laws

Canada is a world-famous tourist destination, popular for its majestic wildlife, breathtaking scenery and incredible history and culture. However, for gaming fans, it is also well known for having overly complicated gaming laws.

Unlike countries such as the USA and Great Britain, where gaming regulations are more relaxed and easier to understand, Canada’s gambling laws are more complex and vary from province to province. This can make things a little confusing for visitors to Canada who are eager to enjoy some gaming while they are there.

Provincial Regulation

Unless it is regulated by a province, gambling in Canada is illegal. Therefore, in order to open a casino, operators must comply with local laws, but each province has different gambling laws and requirements.

In practice, every province has their own gambling authority which regulates gambling and issues registrations in that area. This then allows private companies to operate gambling platforms and services in that province. 

Competition from offshore operators

For many years, gambling in Canada has been possible through providers located outside the country. These so called “offshore operators” did not have to be registered with local authorities and benefited from less regulation and lower taxes.

This situation made it harder for new, regulated companies to set up in the country as they faced tougher regulations and higher taxes. However, recent changes in regulations have simplified certain rules and procedures, allowing companies to compete on a level playing field.

Changes to Regulations

For the first time in many years, the Canadian gaming sector saw significant changes between 2021 and 2022. In 2021, amendments to the gaming provisions of Canada’s Criminal Code came into force, allowing provincial government gaming operators to offer single event betting.

In 2022, the Province of Ontario opened up the igaming market to private sector gaming operators. The Ontario government subsequently established iGaming Ontario (iGO) as the legal provider of online gaming in Ontario, allowing them to work with the private sector to deliver gaming services to the province.

Notable gaming legislation in Canada

• 1985: Federal and provincial governments reach an agreement allowing provinces to create their own for online and land-based gambling regulations.
• 1996: The Kahnawake Gaming Law established the Kahnawake Gaming Commission (KGC) to issue licenses and regulate third-party gambling operators.
• 2021: Provinces allowed to regulate and offer single-event sports betting.
• 2021: The Alcohol and Gaming Commission of Ontario (AGCO) launched a new regulated online gaming and betting regime.

Increased Revenues

Since launch, iGaming Ontario has been a huge success, and currently, 50 operators are running 80 sites. The number of active player accounts has doubled in the first quarter of Ontario’s 2024-25 fiscal year, while revenue from sports betting and online casinos has grown over 34% year-over-year.

The online casino is the most popular gaming activity, accounting for 73% of revenue and over 84% of player wagers. In total, gamers wagered $15.5bn on tables games, peer-to-peer bingo and slots, such as popular slots from casinos.com. That is a huge 33% growth on the previous year.

Now, instead of losing revenue to off shore gaming platforms, more than 85% of Ontario’s gamers play on AGCO compliant sites. This results in around $2bn in tax revenues and directly contributes to provincial infrastructure, education, and healthcare. Players have also benefitted from using regulated, safer sites for their gaming.

Benefits of Regulated Gaming Sites:

1. Transparent rules and play for all games on the site
2. Personal information, including financial and personal, are safe and secure
3. Timely and reliable payout of player winnings.
4. Improved measures to reduce problem gambling
5. Increased tax revenues

Today, Ontario has won recognition as a market leader in responsible gaming, and tax revenues have far exceeded expectations. Currently, the government monopoly in land-based and online gaming remains unchanged in all other provinces, however it is expected that others will follow Ontario’s lead.

Predicted Growth

The Canadian online gaming market has seen significant growth in recent years, and analysts are predicting that trend will continue for the foreseeable future. Revenue in the Canadian online gambling market is anticipated to be over US$4 billion by the end of 2024. 

With a projected annual growth rate of 6.39%, those revenues are likely to be around US$5.5 billion by 2029. The number of gamers is also estimated to reach over 33 million by the end of 2029.

One of the main reasons for the growth of the online gaming market is the convenience and accessibility they offer. Canadians can now easily access online platforms with their smartphones, allowing them to game from the comfort of their own homes. 

The Future

Ontario’s success has definitely drawn admiring glances from other provinces eager to benefit from extra revenues and increased budgets. As yet, there have been no indications that others are prepared to follow their lead, however, there is no doubt that further reforms are likely to follow. 

That means that not only will there be a continued relaxation in attitudes towards gambling, but more Canadians can expect the chance to experience the excitement of safer, better regulated online operators.