Online Gambling Legislation in Canada

Online gambling legislation in Canada

Gambling and money games

There are many categories games of chance and money.

Here are the main activities concerned :

• The lottery which consists of betting on a result by relying totally on chance. We distinguish in particular the rooms dedicated to bingo and video lottery machines without forgetting the lottery system with tickets ;
• Casino games that subdivide themselves into many categories, the most popular of which are the slot machines , card games (poker, blackjack, baccarat...), roulette, dice games and many more ;
• Horse races that involve betting on the outcome of a race between a certain number of racehorses ;
• Sports betting that invites players to make a prediction on the result of a sports match or a championship in different disciplines.

Regardless of the type of gambling and money game, the basic principle consists in betting money hoping to multiply the amount deposited in this way. Knowing that there is also a risk of losing this amount.

Gambling (online or offline) in the Canadian provinces: an update on the situation

Play offline

For several decades now, each Canadian province has been establishing its own legislation in the field of gambling. Since the early 1970s, this has been done practically autonomously. Moreover, the majority of these provinces are home to several brick-and-mortar casinos. From the end of the 1980s, many establishments began to open their doors.

With regard to horse betting in particular, this type of activity has been legal since the beginning of the twentieth century.

In 2021, Canada has more than a hundred casinos spread across its various provinces, with the exception of 3 of the latter which do not have any, namely Newfoundland and Labrador, New Brunswick and Prince Edward Island.

Play online

The legislation is more subtle when it comes to engaging in online gambling. On the one hand, it is illegal for Canadian operators to offer gambling services, or more precisely gambling and money games on the Internet.

Nevertheless, there are a few operators who still offer entertainment in this category, including :

• The Atlantic Lottery Corporation and the British Columbia Lottery Corporation have launched lottery tickets on the Internet ;
• Woodbine Racecourse offers the opportunity to bet on horse races online.

If Canadian operators cannot, in absolute terms, offer games, players enjoy a certain freedom. Indeed, it is quite possible for them to indulge in these online entertainments. Whether it's card games like blackjack and poker or to bet on sports disciplines via a virtual bookmaker. Of course, they must respect some rules such as the age limit and the legality of the platforms where they will have fun.

Are offshore online casinos allowed in Canada?

Yes, offshore casinos can very well offer their services to interested Canadian players. Nevertheless, as stated above, it is necessary that they operate legally. A number of criteria must then be met, namely :

• The holding of an operating license issued by a renowned regulatory body such as that of Malta, Curaçao, Kahnawake, the United Kingdom or Gibraltar ;
• The implementation of a security device to protect confidential and sensitive information provided by users of the platform ;
• The adoption of a payment system that is both legal and trustworthy while giving members a choice ;
• The existence of customer support that is available to players, the latter can ask questions about the operation of the site and the various services available.

Are there any online gambling regulatory bodies in Canada?

Canada is home to an online gaming regulatory organization based in Kahnawake, a sovereign nation located in in Quebec . More specifically, it is the Kahnawake Gaming Commission or Kahnawake Gaming Commission which has existed since 1996 as part of the Kahwanake Gaming Act.

This organization based in the eponymous reserve has the role of granting operating licenses. The latter are issued not only to online casinos , but also virtual poker rooms as well as online platforms dedicated to sports betting.

Gambling and gambling in British Columbia

Who can play gambling in British Columbia?

Anyone of legal age, i.e. 19 years of age (and older) can legally engage in gambling in British Columbia. It is possible for players in this age category to have fun in a casino, but also in a racetrack, a bingo hall, a teletheater or a community gaming center. Also, they can participate in a legal gambling event or contact a lottery retailer.

How to do it?

As long as an individual can prove that he is of legal age, he can therefore go to legal gambling establishments or events in British Columbia. The choice is then possible between various games such as bingo, poker, lottery or slot machines. When it comes to online gaming sites, it should be mentioned PlayNow.com , the one online gaming platform that is legal in British Columbia.

As far as horse racing is concerned, British Columbia has 5 racetracks. It is also possible to bet in TV theaters.

Gambling laws and regulations in Canada

Gambling activities are regulated by the Criminal Code of Canada, which was promulgated in 1892.

From a legal point of view, gambling is banned in Canada. This is provided for by the Criminal Code of Canada: this activity is theoretically prohibited both in a land-based casino and an online platform. People who engage in it are "guilty of a criminal act". In this sense, they can receive a prison sentence (of up to 2 years) or a punishment via summary proceedings.

Despite this, these games are still tolerated, but under certain conditions. First, the provinces of Canada have the right to manage this industry themselves. This turnaround took place from the year 1970.

Tolerance of games is then possible thanks to a flexible interpretation of the "lottery" (which is allowed), which then encompasses a wide range of games and machines. Thus, gambling games can be categorized as lotteries. In any case, each province can apply its specific laws in this area.

In any case, the legislation in the field of gambling (especially when it comes to online entertainment) remains rather unclear. In any case, it is clear that no one has yet been prosecuted for engaging in such online activities. Moreover, the Criminal Code does not explicitly state that playing at an online casino constitutes a criminal act. Finally, banking institutions are authorized to validate financial transactions with casinos, without the state vetoing it.

Gambling revenues in Canada

Overall revenues in Canada

Gambling is an important source of income in Canada. According to a report by the Canadian Gaming Association (or Canadian Gaming Association), this industry is responsible for nearly 135,000 jobs. In addition, the market weighs more than $ 15 billion.

For the year 2017, here is how the revenues earned in this sector are distributed :

• Casino: US$5.85 billion ;
• Lottery: US$5.15 billion ;
• Video lottery terminal: US$1.18 billion ;
• Charity Games: US$0.15 billion ;
• Other games: US$0.87 billion.

Case of British Columbia

Regarding British Columbia in particular, here is how gambling revenues are distributed. For the years 2014 and 2015, these were estimated at US$ 2.9 billion (excluding horse racing). Once the expenses have been defalcated, the state's revenues amount to 1.25 billion. This amount is then divided between government operations, communities and the people of British Columbia.

The future of online gambling in Canada

The future of online gambling in Canada seems to be quite promising, despite the fact that a judicial blur undeniably remains. Indeed, the market has been expanding steadily since the 1990s. Also, it should be noted that many players continue to visit foreign platforms (especially based in the United States). Moreover, this situation has not failed to motivate the local government to make changes in the legislation in this area.

In addition to all this, Canada can boast of having a particularly successful program to protect players from the negative consequences of this activity. This has the effect of a low rate of people who suffer from addiction. The gambling industry should see good days, if the legislation is clarified as much as possible.