In Canada, there is no widely accepted definition of online casinos, mobile, electronic, or digital games. Provincial governments have the right to independently authorize the activities of digital game organizers, taking into account federal laws. This includes the growing popularity of live gambling streams, where players can engage with live dealers in real-time through online platforms.

According to the Criminal Code, the following are considered legal:

  • Betting on horse racing, provided that no more than 10 people place bets.

  • Private bets between individuals not involved in the gambling business.

  • Bets placed at a legalized racetrack or through a licensed establishment.

Betting on individual sports or random events is prohibited in Canada.

The law does not regulate the activities of online casinos with cross-licenses. Access to resources with international licenses issued by regulators from other jurisdictions is not prohibited.

Gambling Landscape in Canada

Gambling laws in Canada vary by province, but online gambling is not illegal. There is no federal law banning participation in online casinos, but there are restrictions on gambling in establishments that are not owned or licensed by provincial governments. Amendments to the Criminal Code allowed for "parlay" bets and pools in provincial lotteries. This was later amended again, allowing single sports bets.

Online casino games occupy a grey area under the Criminal Code. Players can access online casinos based in foreign jurisdictions, but in most cases, these casinos are not regulated by Canadian provinces. This applies to nearly all provinces, except Ontario. Ontario has an open market for international operators, and they are regulated by iGaming Ontario, a subsidiary of the Alcohol and Gaming Commission of Ontario.

Foreign casino operators can apply for a license from iGaming Ontario, and once the commission gives them the green light, they can legally operate in Ontario. This means all their games must be tested for fairness, and online casinos must provide approved payment methods, responsible gaming tools, and proper support services for Ontario players. However, they are not required to establish headquarters in Ontario or offer phone support. Apart from these aspects, the online gaming experience in Ontario is as good as it gets.

Legal Gambling Age and Taxation

The legal gambling age in Canada varies by province. In Alberta, Manitoba, and Quebec, the minimum age is 18. In other provinces, including British Columbia and Ontario, the legal gambling age is 19+. In Ontario, however, the legal age for purchasing lottery tickets and playing bingo is 18+.

Another important point is that gambling winnings in Canada are not subject to income tax. This is in stark contrast to the U.S., where you are required to pay federal and state taxes (where applicable). If you are a professional gambler in Canada, you will have to pay taxes on your gambling winnings. However, most recreational bettors and online gamblers are unaffected.

Provincial Online Casinos

In other provinces, online gaming is generally a government monopoly. In the Maritime provinces, the Atlantic Lottery Corporation (ALC) holds a monopoly on online gaming and sports betting markets. ALC partners with IGT and offers a solid portfolio of games. However, if you're looking for a wider selection of casino games, ALC.ca might feel quite limited. The same applies to Quebec's provincial online casino or Alberta's PlayAlberta.

If you've ever played at international online casinos, you're familiar with the endless slots, dynamic table games, and vast selection of live dealer tables they offer. ALC's online casino and provincial establishments cannot compete with them in terms of size and variety. Most of these international online establishments are regulated by iGaming Ontario and operate fully legally within Ontario. Even if they do not yet hold an iGaming Ontario license, you can be sure that all of our selected online casinos have an impeccable reputation. They are regulated in foreign gaming jurisdictions, such as Malta, the UK, and several others.

The Future of iGaming Industry in Canada

Ontario is currently the only Canadian province with an open gambling market. Alberta has expressed interest in following Ontario's lead. Quebec, where gambling is regulated by Loto-Quebec, has rejected proposals to do the same, but interest is growing there as well. In British Columbia, the gambling market is managed by BCLC, and although the company recently expanded its portfolio by partnering with Evolution Gaming, the demand for internationally regulated online casinos is growing.

Ontario's model has benefited the province, generating substantial revenue, employment, and boosting gaming tourism. It has also proven to be extremely safe, something that other provinces have struggled with in recent years. As such, dismantling the provincial government's monopoly on gambling should not harm state revenues, but there are other concerns. Responsible gambling and addiction are major issues faced by provinces, particularly in Prince Edward Island (PEI). Another challenge is the role of Indigenous casinos and how the introduction of international online casinos might affect their businesses. First Nations challenged Ontario's gambling legislation, but the Ontario Supreme Court dismissed the case.

As Ontario leads and continues to profit from its gambling regulatory framework, it is expected that several other provinces will follow suit. Alberta will likely be the next to adopt such a model, and from there, other provinces may join in.