Canada is Regulating Its Online Casinos: All You Need to Know

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Following the change of bill in the Canadian Criminal Code in August 2021, Bill C-218, the Canadian gambling landscape is witnessing some shifts. The most prominent one relates to the introduction of single-event sports betting, which is now legal. Before the change, only parlay bets were allowed. This was considered a harsh restriction as Canadians had fewer options when it came to gambling.

At the time of writing this article, most casino guides are providing mixed signals on where you should play and what bonuses are available. 

The most controversial change is the requirement for advertising to remove any mention of popular Canadian no-deposit bonuses and promotions meant to entice players to join.

History of Gaming Laws in Canada

Gambling in The Great White North was introduced by the natives who used sticks for wagers and games. John Cabot’s voyage which landed him in Canadian territory, in 1497, brought about the playing of cards, which then followed initial versions of games like faro, poker, and blackjack. In time, dice and barbotte became very popular with Canadians throughout the years.

Betting started raising eyebrows to the point of regulation in the late 1800s. As its popularity soared, so did the progression of laws that surrounded it. In 1892, the Canadian Criminal Code was implemented, and this included statutes revolving around gambling that were permissible under certain conditions but overall, tolerated.

By the 1970s, the government decided to leave regulation decisions in the hands of the provinces, which permitted most Canadians to construct and visit brick-and-mortar casinos as they deemed fit. 

The country’s first casino was built in Winnipeg in 1989 and then other provinces such as Manitoba, Quebec, Ontario, Saskatchewan, and Novia Scotia followed suit. Further to live casinos and horse tracks, most of the provinces allowed for the installation of Video Lottery Terminals, which were placed throughout Canada.

While Canadian laws around gambling are both straightforward and full of loopholes in equal measure, it is in most regards accepted and is left in the hands of Canadian citizens to play responsibly and for entertainment purposes. Current laws are enacted for revenue control and to permit government-sponsored online gambling to contribute to the whole gambling industry.

While it is illegal to operate an online casino without a license, it is technically legal for players to gamble in an offshore casino.

What does playing online gaming in Canada entail for bettors? 

There are around 19 million players, considered active, in the country. In 2021, the turnover (gross) of games in casinos totalled over 600 million dollars. Bookies predict an increase in numbers in 2022. 

Canada is considered a ‘gray area’ where online gaming is concerned as virtual casino sites are neither against the law nor legalised.

Players who do not wish to break the law should only trust licensed websites. In Canada, the gambling regulatory body is the Kahnawake Gambling Commission. It holds the power to regulate online gaming platforms and issue licenses. 

Regulating Online Gaming in Canadian Provinces

With this huge shift in the industry, many provinces are offering iGaming products and services but not all have the same regulations in place.

Ontario was the first province to regulate online gambling thanks to its novel provider, iGaming Ontario (IGO), which is a subsidiary of the Alcohol and Gaming Commission of Ontario. The IGO provides esports betting together with online casinos from third-party operators.

With regard to Quebec, however, the situation is slightly different as this province is not sure about the grey market in Canada. For this reason, they have one government-regulated website that offers online gambling- Espacejeux. This website started offering single-event bettering as soon as the new law came into place.

British Columbia was all for the new online gambling regulations and offered single-event betting immediately. The British Columbia Lottery Corporation (BCLC) launched its PlayNow Sportsbook website as soon as the new laws were enacted on August 27, 2021.

When it comes to Manitoba, single-event gambling was on offer as soon as it was allowed, Along with Alberta and Saskatchewan, Manitoba is also part of the Western Canada Lottery Corporation (WCLC). All provinces in the WCLC provide access to the Sport Select online gambling website. Manitobans also have access to the PlayNow Website as the province also has an agreement with BCLC.

Alberta did not hop on board the new gaming regulations like other provinces. Single-event betting was not allowed until September 2021. Like Ontario, however, Alberta did open its doors to third-party competitors allowing its residents to gamble online at Play Alberta – the only gambling website owned by the province.

The Atlantic Provinces which include New Brunswick, Nova Scotia, Newfoundland and Labrador, and Prince Edward Island are all part of the Atlantic Lottery Corporation (ALC). The ALC website permits residents of these provinces to play online casino games. The ALC has also entered into agreements with plenty of video lottery game providers over 2021 to improve its online gambling services.

Saskatchewan agreed with SaskGaming to introduce the Saskatchewan Indian Gaming Authority (SIGA) as the operator of the province’s online gaming portal. In June 2022, the SIGA signed an agreement with BCLC to bring PlayNow to the residents of Saskatchewan.

Nunavut, the Northwest Territories, and the Yukon are all part of the WCLC as associate members. Even though the territories adjusted to the new sports betting regulations, online gambling is still not available. 

The Future of Canada’s Online Gambling Industry

Canadian residents need no longer be concerned about betting online with a virtual platform in The Great North White even though the rules and regulations that have been created by the government are still somewhat complex. 

They will not be breaking any laws when playing at an offshore casino as the Criminal Code of Canada does not penalise bettors playing online. The government seems to have no plans to exclude Canadian citizens from visiting the offshore site and playing on virtual platforms in general.  Canadians aren’t taxed on gambling winnings, which in itself is a win. 

And while each province and territory is adjusting to the new laws at its own pace, it seems like online gambling in Canada will become the norm and is here to stay.

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