Office No. 18, 9.17 Capital Tower, 91 Waterloo Road, London, SE1 8RT
Mon - Fri: 10.00 - 19.00 GTM+2
+38 095 841 41 64 | +357 95 567 212
contact@legalpilot.com
CA

Is Gambling Legal in Canada?

Partially Regulated
Gambling is regulated at the provincial level; each province licenses and oversees gambling, but offshore operators remain accessible in a legal gray area.
Expert Gambling Regulation Guidance

Professional consultation on gambling regulations and legal compliance requirements for operators




    Key Information Highlights Legislation Timeline Requirements Sources

    Key Information

    Last Update 2025
    Regulatory Authority Provincial gaming authorities (e.g., Alcohol and Gaming Commission of Ontario, British Columbia Lottery Corporation)
    License Cost Varies

    Regulation by Activity Type

    Casinos Regulated
    Online Casinos Regulated
    Betting Regulated
    Online Betting Regulated
    Lotteries Regulated
    Poker Regulated

    Highlights

    • Gambling in Canada is regulated primarily at the provincial and territorial level, not federally.
    • The Criminal Code of Canada prohibits gambling unless conducted and regulated by provincial authorities.
    • Each province has its own regulator and licensing process, leading to varied rules and frameworks across Canada.
    • Ontario is the only province with a fully open, regulated iGaming market allowing private operators under strict licensing.
    • Government-run entities hold a monopoly on most gambling activities, but some First Nations, like Kahnawake, issue their own licenses.
    • Gambling winnings are generally not taxed unless gambling is considered a professional activity or business.
    • Foreign online gambling operators often serve Canadians in a legal gray area, as provincial laws may not explicitly prohibit access.
    Technical Compliance Assistance

    Our specialists will help you understand technical compliance requirements for gambling operations




      Legislation

      Primary Legislation

      The legal framework governing gambling in Canada is primarily established at the federal level by the Criminal Code of Canada. Part VII of the Criminal Code prohibits all forms of gambling and related activities unless specific exceptions apply. The most significant exception is found in Section 207, which grants provinces and territories the exclusive authority to "conduct and manage" gaming and betting activities within their respective jurisdictions. This means that while gambling is generally prohibited federally, provinces and territories have the power to regulate, organize, and license gambling operations, including land-based and online gambling, lotteries, and betting.
      • Criminal Code of Canada (R.S.C., 1985, c. C-46): The foundational federal statute that prohibits gambling except where conducted and managed by provincial or territorial authorities under specified conditions.
      • Provincial and Territorial Legislation: Each province and territory enacts its own statutes and regulations to govern gambling activities within its borders. These laws typically cover casino gaming, lotteries, sports betting, and online gambling. Examples include:
        • Ontario: Gaming Control Act, 1992 and Ontario Lottery and Gaming Corporation Act, 1999
        • British Columbia: Gaming Control Act, 2002
        • Alberta: Gaming, Liquor and Cannabis Act
        • Quebec: Act Respecting Lotteries, Publicity Contests and Amusement Machines
        • Manitoba: Liquor, Gaming and Cannabis Control Act
        • Other provinces and territories have similar dedicated statutes
      • Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA): This federal law imposes anti-money laundering and reporting obligations on gambling operators, requiring them to report certain transactions to the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC).

      Regulatory Authority

      Oversight and regulation of gambling in Canada are decentralized, with each province and territory responsible for establishing its own regulatory bodies to enforce local gambling laws and manage gaming operations. These authorities are empowered to license, regulate, and supervise all gambling activities within their jurisdictions, including compliance with federal anti-money laundering requirements.
      • Provincial and Territorial Regulatory Bodies:
        • Ontario: Alcohol and Gaming Commission of Ontario (AGCO) and iGaming Ontario (iGO)
        • British Columbia: Gaming Policy and Enforcement Branch (GPEB) and British Columbia Lottery Corporation (BCLC)
        • Alberta: Alberta Gaming, Liquor and Cannabis Commission (AGLC)
        • Quebec: Régie des alcools, des courses et des jeux (RACJ) and Loto-Québec
        • Manitoba: Liquor, Gaming and Cannabis Authority of Manitoba
        • Other provinces and territories have equivalent commissions or authorities
      • Federal Oversight:
        • Financial Transactions and Reports Analysis Centre of Canada (FINTRAC): Enforces compliance with anti-money laundering and terrorist financing laws within the gambling sector.

      License Types

      Overview of Gambling Licensing in Canada

      Canada operates a decentralized gambling licensing system. Each province and territory is responsible for regulating, licensing, and overseeing gambling activities within its borders. There is no single national gambling license; instead, licensing procedures, available license types, requirements, and costs vary depending on the provincial or territorial authority. Additionally, certain First Nations, such as the Kahnawake Mohawk Territory, issue their own licenses, particularly for online gambling.

      Types of Gambling Licenses

      • Casino Licenses: Issued for land-based casinos; only provincial governments or their designated agencies can hold commercial casino licenses. In some provinces, charitable organizations may apply for licenses to operate casino-style events for fundraising purposes.
      • Online Gambling Licenses: Provinces such as Ontario, British Columbia, and Quebec offer licenses or authorizations for online casinos, poker, and sports betting platforms. Ontario is the only province with a fully open licensing system for private online operators.
      • Sports Betting Licenses: Available through provincial lottery corporations or, in Ontario, through the open iGaming market for private operators.
      • Lottery Licenses: Provincial lottery corporations manage and license lottery operations. Charitable lottery licenses are also available for non-profit fundraising.
      • Charitable Gaming Licenses: Available in all provinces for bingo, raffles, and certain casino-style games operated by non-profit or religious organizations.
      • First Nations Licenses: The Kahnawake Gaming Commission issues licenses to online gambling operators, which are recognized internationally but not always by all Canadian provinces.

      Application Process and Duration

      • Provincial Licensing: Operators must apply directly to the relevant provincial gaming authority. The process typically involves:
        • Submission of a detailed application form with business information, ownership structure, and operational plans.
        • Comprehensive background checks on key individuals and corporate entities.
        • Demonstration of technical capability, financial stability, and responsible gambling measures.
        • Approval of gaming equipment and software (for both land-based and online operations).
      • Ontario (iGaming): Private operators must first register with the Alcohol and Gaming Commission of Ontario (AGCO) and then enter into an operating agreement with iGaming Ontario (iGO). The process includes rigorous due diligence, technical certification, and responsible gambling compliance.
      • First Nations (Kahnawake): The Kahnawake Gaming Commission requires a multi-stage application, including disclosure of ownership, software testing, and ongoing compliance reviews.
      • Duration: License validity periods vary by province and type, typically ranging from one to five years, with annual or periodic renewal requirements.

      Renewal Conditions and Eligibility

      • Licenses must be renewed before expiration; renewal involves a review of ongoing compliance, updated documentation, and payment of renewal fees.
      • Eligibility is restricted to entities meeting strict integrity, financial, and operational standards. In most provinces, only government agencies or their partners can hold commercial casino licenses, while charitable licenses are restricted to eligible non-profit organizations.
      • For online gambling in Ontario, private operators must maintain continuous compliance with AGCO and iGO rules to remain eligible for renewal.

      Licensing Costs and Financial Requirements

      • Application Fees: Vary by province, type of license, and scale of operation. For example, in Ontario, the initial registration fee for an iGaming operator is substantial and may exceed tens of thousands of Canadian dollars.
      • Annual Fees: Ongoing regulatory fees are charged annually or periodically, depending on the province and type of license.
      • Financial Guarantees: Some provinces require operators to provide financial guarantees or security deposits to ensure compliance and player protection.
      • Charitable Licenses: Fees for charitable gaming licenses are generally lower and are often based on the scale of the event or anticipated revenues.

      Key Requirements for Obtaining and Maintaining Licenses

      • Comprehensive background and integrity checks for all principals and significant shareholders.
      • Demonstration of financial stability and transparent business operations.
      • Implementation of robust anti-money laundering (AML) and responsible gambling measures.
      • Technical certification of gaming equipment and software by approved testing laboratories.
      • Ongoing compliance with provincial regulations, including reporting, auditing, and player protection standards.
      • Adherence to advertising and marketing guidelines, including restrictions on targeting minors and vulnerable populations.
      • For online operators, geolocation controls to ensure only eligible residents can access services.

      Summary Table: Provincial Licensing Authorities

      Province/Territory Regulatory Authority Main License Types Private Operator Licenses
      Ontario Alcohol and Gaming Commission of Ontario (AGCO) / iGaming Ontario (iGO) Online casino, sports betting, land-based casino, charitable gaming Yes (open iGaming market)
      British Columbia British Columbia Lottery Corporation (BCLC) Online casino (PlayNow), land-based casino, lottery, charitable gaming No (government-run online gaming)
      Quebec Loto-Québec Online casino (Espacejeux), land-based casino, lottery, charitable gaming No (government-run online gaming)
      Alberta Alberta Gaming, Liquor and Cannabis Commission (AGLC) Online casino (PlayAlberta), land-based casino, charitable gaming No (except charitable)
      Kahnawake (First Nation) Kahnawake Gaming Commission Online casino, poker, sports betting Yes (internationally recognized)

      Gambling Tax

      Overview of Gambling Operator Taxation in Canada

      Gambling operator taxation in Canada is determined at the provincial level, as each province has exclusive authority to conduct and manage gambling activities within its jurisdiction. There is no unified federal tax regime for gambling operators; instead, tax rates, bases, and reporting requirements vary by province and by the type of gambling operation.

      Tax Rates for Gambling Operators

      Province Type of Gambling Tax Rate / Revenue Share Tax Base
      Ontario Online gambling (iGaming Ontario) 20% of GGR (Gross Gaming Revenue) Gross Gaming Revenue (GGR)
      British Columbia Land-based & online (BCLC) Varies (typically 20-25% of net win for service providers) Net Win (similar to GGR)
      Quebec Land-based & online (Loto-Québec) Revenue remitted to government-owned corporation; private partners paid fees All revenues accrue to Loto-Québec
      Alberta Land-based & online (AGLC) Varies (service providers receive a percentage of net proceeds) Net Proceeds
      Other Provinces Land-based & online Government retains all or most revenue; private operators may receive service fees Varies by agreement
      Note: In most provinces, gambling is conducted and managed by government-owned corporations. Private operators, where permitted, typically operate under service agreements and are paid a share of revenue or fees rather than being taxed directly.

      Basis for Taxation

      • The primary basis for taxation is Gross Gaming Revenue (GGR), defined as total bets minus winnings paid to players.
      • In some provinces, the basis may be Net Win or Net Proceeds, which are similar to GGR but may account for additional adjustments or deductions.
      • For government-operated gambling, all revenue is typically remitted to the provincial treasury, and private partners are paid contractual fees or a share of revenue.

      Tax Reporting and Payment Procedures

      • Reporting Frequency: Operators must report gaming revenues and remit taxes or revenue shares on a monthly or quarterly basis, as specified in their agreements with the provincial authority.
      • Documentation: Detailed financial records, including amounts wagered, payouts, and GGR calculations, must be maintained and are subject to audit by provincial regulators.
      • Payment: Taxes or revenue shares are paid directly to the relevant provincial lottery corporation or gaming authority, typically via electronic funds transfer.
      • Additional Reporting: Operators must comply with anti-money laundering (AML) reporting requirements, including reporting large transactions and suspicious activities to FINTRAC.

      Tax Incentives, Exemptions, and Special Provisions

      • No General Tax Incentives: There are no standard tax incentives or exemptions for gambling operators in Canada. The sector is generally considered a significant source of public revenue.
      • Charitable Gambling: Charitable and religious organizations may be exempt from certain taxes when conducting licensed charitable gaming events, but must use proceeds for approved purposes.
      • Service Provider Model: In provinces where private operators act as service providers (e.g., Ontario, British Columbia), they receive a negotiated share of GGR rather than paying a traditional tax.
      • Offshore Operators: Offshore operators not licensed by a province are not subject to Canadian taxes, but may be blocked from accessing the market under provincial regulations.

      Prohibited Individuals

      Age Restrictions and Identification Requirements

      • The legal gambling age in Canada varies by province and territory, typically being either 18 or 19 years old. For example, Alberta, Manitoba, and Quebec set the minimum age at 18, while most other provinces and territories, including Ontario and British Columbia, require players to be at least 19.
      • All gambling venues and online platforms are required to verify the age of participants. This involves checking government-issued identification before allowing entry to casinos or registration on online gambling sites.
      • Online gambling operators must implement robust identity verification processes to prevent underage gambling, including digital ID checks and, in some cases, additional documentation for large transactions or withdrawals.

      Prohibited Activities and Game Restrictions

      • All forms of gambling are prohibited unless specifically authorized and regulated by provincial or territorial authorities. Unlicensed gambling operations, including unauthorized online casinos, are illegal.
      • Only provincially approved games are permitted. This typically includes lotteries, slot machines, table games (such as blackjack and poker), bingo, and sports betting. Some provinces restrict certain games or betting formats, such as prohibiting unregulated online poker rooms or private sportsbooks outside Ontario.
      • Bookmaking, pool-selling, and the operation of gambling establishments without provincial approval are explicitly banned.
      • Pari-mutuel betting on horse racing is permitted but is regulated federally by the Canadian Pari-Mutuel Agency.
      • Some provinces restrict the availability of certain electronic gaming machines (e.g., video lottery terminals) to specific venues or regions.

      Advertising and Marketing Limitations

      • Advertising of unauthorized or unlicensed gambling services is strictly prohibited across Canada. Only provincially licensed operators may advertise their products and services within their jurisdiction.
      • Advertisements must not be misleading, deceptive, or target minors. Marketing must avoid suggesting that gambling is a way to solve financial problems or guarantee success.
      • National broadcasters and digital platforms must comply with standards set by regulatory bodies, such as the Canadian Radio-television and Telecommunications Commission (CRTC) and the Canadian Broadcast Standards Council (CBSC).
      • Marketing affiliates are generally permitted but must comply with all relevant advertising standards and may not promote unlicensed operators.
      • Ontario, in particular, has strict rules governing the content and placement of gambling advertisements, including prohibitions on celebrity endorsements that appeal to minors and requirements for responsible gambling messaging.

      Responsible Gambling Requirements and Player Protection Measures

      • All regulated gambling operators must provide access to responsible gambling resources, including information on problem gambling, self-assessment tools, and links to support services.
      • Self-exclusion programs are mandatory, allowing individuals to voluntarily ban themselves from gambling venues and online platforms for a set period or indefinitely. These programs are widely promoted and easily accessible.
      • Operators must implement tools for players to set deposit, loss, and time limits on their gambling activity. These tools are designed to help players manage their spending and prevent excessive gambling.
      • Casinos and online platforms are required to monitor for signs of problem gambling and intervene when necessary, which may include providing information about support services or enforcing mandatory breaks in play.
      • All player data, including financial and personal information, must be securely protected using industry-standard encryption and cybersecurity measures.
      • Minimum payout percentages are regulated, with most provinces requiring a minimum return-to-player rate (e.g., 85%) to ensure fairness.

      Geographic and Location Restrictions

      • Land-based gambling venues (casinos, racetracks, bingo halls) may only operate in locations approved by provincial authorities. Some provinces restrict the number or location of casinos to manage social impact.
      • Online gambling is generally restricted to residents physically located within the province or territory. Geolocation technology is used to ensure compliance, particularly in provinces like Ontario, where players must be within provincial borders to access regulated online gambling sites.
      • Access to provincially regulated online gambling platforms is typically blocked from outside the province. Conversely, unlicensed offshore operators are subject to payment and IP blocking measures in some jurisdictions.
      • Some provinces, such as Ontario, have established open markets for private online gambling operators, but these operators must comply with strict geographic restrictions and player protection standards.
      Gambling Regulatory Consultation

      Get expert advice on gambling regulations and operational requirements




        Timeline

        Year/Date Event
        1892 Gambling is first criminalized in Canada with the adoption of the original Criminal Code, prohibiting all forms of gambling except for small-scale betting at fairs and exhibitions.
        1910 Amendments to the Criminal Code permit pari-mutuel betting on horse racing, marking the first significant legal exception to the gambling ban.
        1969 The Criminal Code is amended to allow provincial and federal governments to operate lotteries and certain forms of gambling, paving the way for government-run lotteries.
        1970 Further amendments to the Criminal Code devolve authority to the provinces, allowing them to regulate, license, and operate gambling activities within their jurisdictions.
        1985 Provinces are granted full control over gambling regulation, including casinos, lotteries, and slot machines, effectively legalizing most forms of gambling if provincially authorized.
        1989 The first commercial casino in Canada opens in Winnipeg, Manitoba, marking the beginning of regulated land-based casino gambling.
        1996 The Kahnawake Gaming Commission is established in Quebec, becoming one of the world's first online gambling licensing authorities and asserting First Nations regulatory rights.
        2010 British Columbia launches PlayNow, the first provincially operated online gambling platform in Canada.
        2021 Bill C-218 is enacted, legalizing single-event sports betting at the federal level, with provinces authorized to regulate and offer this form of betting.
        2022 Ontario launches a regulated open iGaming market, becoming the first province in Canada to license private online gambling operators.

        Requirements

        Software Certification and Technical Standards

        • All gambling platforms and games must undergo independent testing and certification to ensure fairness, randomness, and compliance with provincial technical standards. Certification is typically performed by recognized testing laboratories approved by the relevant provincial regulator.
        • Technical standards cover requirements for random number generators (RNGs), game fairness, payout calculations, and system integrity. Operators must demonstrate that all gaming software and hardware meet these standards before launch and after any significant updates.
        • Platforms must support secure, auditable logging of all gaming transactions, including bet placement, outcomes, and payouts, to facilitate regulatory oversight and dispute resolution.
        • Regular vulnerability assessments and penetration testing are required to ensure the ongoing security of gambling systems.

        Data Protection, Privacy Measures, and Server Location

        • Operators must implement robust data protection measures, including encryption of personal and financial data both in transit and at rest, in accordance with applicable provincial privacy laws and the federal Personal Information Protection and Electronic Documents Act (PIPEDA).
        • Access to sensitive data must be restricted to authorized personnel, with strict access controls and monitoring in place.
        • Operators are generally required to store customer data on servers located within Canada or in jurisdictions approved by the relevant provincial regulator to ensure regulatory access and compliance with Canadian privacy standards.
        • Comprehensive data retention and deletion policies must be established, specifying how long data is kept and under what conditions it is securely destroyed.

        Anti-Money Laundering (AML) and Know Your Customer (KYC) Procedures

        • Operators must implement a comprehensive AML compliance program as mandated by the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) and associated regulations.
        • KYC procedures require the verification of the identity of all customers engaging in certain transactions, such as account creation, large deposits or withdrawals, and suspicious activities. Verification methods must comply with federal and provincial standards, including document verification and database checks.
        • Operators must monitor ongoing customer activity for unusual or suspicious transactions and report such activities to the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC).
        • Operators are required to determine beneficial ownership for entity accounts, identify politically exposed persons (PEPs) and heads of international organizations (HIOs), and apply enhanced due diligence where necessary.
        • Third-party transaction determination and record-keeping are mandatory for certain types of financial activity.

        Financial Reporting, Auditing Standards, and Record-Keeping

        • Operators must maintain detailed and accurate financial records of all transactions, including bets, wins, losses, deposits, withdrawals, and adjustments, as required by provincial regulations and federal law.
        • Regular financial reporting to the relevant provincial regulator is mandatory, including submission of audited financial statements prepared in accordance with recognized accounting standards.
        • Operators are subject to periodic audits by independent third parties and/or regulatory authorities to ensure compliance with financial, operational, and technical requirements.
        • Comprehensive record-keeping requirements apply, including the retention of customer identification, transaction histories, and AML-related documentation for prescribed periods, typically five years or as specified by the regulator.

        Technical Implementation Requirements for Responsible Gambling Tools

        • Operators must integrate responsible gambling features into their platforms, including self-exclusion options, deposit and loss limits, time-out functions, and reality checks (e.g., pop-up reminders of time spent gambling).
        • These tools must be easily accessible to players and their activation or adjustment must be logged and auditable by regulators.
        • Operators are required to display clear information about responsible gambling resources and support services, and provide links to provincial helplines and support organizations.
        • Systems must be capable of enforcing self-exclusion and limit-setting across all products and channels, preventing circumvention by users.
        • Responsible gambling data, including self-exclusion records and limit changes, must be securely stored and protected in compliance with privacy regulations.

        Sources

        Primary Regulatory Authorities

        Legislation Resources

        Contact Information for Key Regulatory Authorities

        Navigate Gambling Regulations Successfully

        Professional guidance on regulatory compliance for gambling operations




          Venezuela United Kingdom

          Important Information Notice

          Gambling regulations are subject to change. The information provided on this page was accurate at the time of publication, but may not reflect the current regulatory landscape. Always consult official sources for the most up-to-date information before making any gambling-related decisions.

          Last updated: 18 April 2025