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How have Canadian online gambling laws evolved over the last few years?
Feb 21, 2025
Image: Freepik
Regulations have long complicated the relationship between gamblers and operators in Canada's gaming industry. While some provinces have placed restrictions on iGaming, many foreign operators have entered the Canadian market and introduced some very innovative solutions.
In recent years, the regulatory landscape of the iGaming industry has evolved significantly, with operators now facing an ever-changing set of strict regulations. This constant stream of new rules demands that operators adapt quickly to maintain compliance with the law and effectively engage with players.
In this post, we aim to explain the evolving nature of gambling laws in Canada, highlighting key milestones and the impact on both operators and gamers in the region. Read on to learn about the industry’s future.
The legal landscape before recent changes
The gambling laws in Canada have always been strict, which is understandable as most of the industry’s activities were regulated by the Criminal Code of Canada. The 207th section of the code states that permission to regulate gambling acts is exclusively provided to the provinces of the government. In the past, this meant that privately owned operators in Canada were barred from offering gaming services to players.
This restriction allowed offshore casino providers to position themselves as great options for Canadian bettors. Users were able to access countless options in an unregulated grey market.
Government lotteries like the Ontario Lottery and Gaming Corporation (OLG) and PlayNow in British Columbia and Manitoba) began to offer digital gambling options but were unable to keep up with the huge influx of new visitors. Sites like Time2play, a leading casino comparison site that plays a crucial role in helping bettors in Canada and beyond, helps players access the top legal providers of online casinos by providing expert reviews and ratings. These new gamers are directed to platforms that best suit their gaming needs.
Key milestones in the evolution of online gambling laws
Let's take a look at some of the major milestones which online gambling laws have evolved through over the last few years in Canada:
Bill C-218
One of the critical turning points in the history of Canada's online gambling law happened with Bill C-218, which is also known as the Safe and Regulated Sports Betting Act. This act brought about the legalization of single-event gambling.
Prior to this, Canadian gamers could only wager using the parlay betting system, where winning is dependent on multiple wagers for real money at any authorized Canadian casino provider. This restriction pushed players to depend on offshore platforms for their daily activities, as it was harder to guarantee a win with the old system.
By enacting this bill, the provinces gained notable authority to regulate single-event gambling — leading to a major shift that ushered bettors into a much more regulated environment.
Ontario’s iGaming market launch (April 2022)
Another notable milestone in the evolution of gambling laws in Canada includes the launch of the iGaming market in 2022. Ontario started out as the first province in the country to be completely regulated and offer gambling licenses to operators within their borders.
A stronger framework for legal wagering was further provided by iGaming Ontario (iGO) and the Alcohol and Gaming Commission of Ontario (AGCO), ensuring that private operations are covered by law in the province.
This launch ensured that key areas of the iGaming market were established.
Major aspects include:
Licensing requirements
Casinos in Ontario were required to obtain a license by registering with AGCO before legal operation could be recognized.
Responsible gaming measures
Strict policies were put in place to ensure that activities like advertising, transactions and self-exclusion followed the requirements of the law.
Competitive marketplace
The launch of the iGaming market opened the door for healthy competition from other operators. Companies like DraftKings, FanDuel and BetMGM joined the market as options for players.
These innovations made it possible for gambling to become increasingly popular among the Canadian audience.
Expansion of provincial online gambling platforms
One of the notable indications that signaled the advent of more favorable gambling laws in Canada is the progression in popularity of online gambling throughout the province of Ontario.
Following the success of platforms regulated by government laws, more operators began to hop on the wagon.
Canadian platforms began to increase their game offerings to improve their appeal in comparison to offshore platforms. The Alberta Gaming, Liquor and Cannabis Commission (AGLC) is also looking into expanding its operations across the region for more reach.
As more operators are being appended to the list of offerings for Canadian bettors, Time2play remains one of the most reliable sources for valuable insight concerning the best provincial and international gambling platforms through their expert recommendations and historical analysis.
Recent crackdowns on offshore operators
The most recent milestone in the growth of Canadian gambling laws is evident in the crackdowns on offshore platforms. With a priority on regulated and legal gambling, authorities have begun to audit foreign operators that do not hold any licenses.
The Alcohol and Gaming Commission of Ontario (AGCO) has developed regulatory measures that ensure that platforms without licenses are restricted from operating in Canada. One good example can be seen in the $100,000 CAD fine issued to DraftKings for the violation of Ontario’s advertising and inducement regulations. Although this action was perceived as a ploy to push foreign platforms out of competition, the goal is to foster a safe gambling environment for Canadians and ensure that every platform abides by governmental policies.
Benefits for Canadian gamblers
Over the past few years, the expansion of online gambling laws has left an indelible mark on the industry, and online gamblers are at the forefront of the positive impact this has had on the industry.
Here are just a few of the many benefits:
More regulated options and safer gambling
The growth of regulated gambling websites has made it easy to access games from different software developers. These platforms are also required to adhere to privacy and protective measures like:
- Verification of player identity to curtail underage gambling
- Integration of safe payment gateways to enhance security and efficiency
- Adoption of features like self-exclusion programs to encourage responsible gambling
Expanded betting opportunities
There has been a record expansion in the opportunities to play a variety of games now more than ever in the history of online gambling.
With the introduction of competitive operations, casino players can now select from a pool of options available on the market. This has resulted in various software providers offering unique gameplay mechanics for the Canadian audience.
Tax-free winnings
Unlike other nations, most casino players in Canada are not mandated to pay tax from their winnings except for professional bettors or individuals who are engaged in the activity as a business.
The impact on the online gambling industry
Having explored some of the benefits for gamblers, let's look at the impact that the evolution of online gambling laws in Canada has made on the industry at large.
Below are a few industry impacts:
Increased market competition
The growth of the online casino market in Canada today can be attributed to the development of gambling laws. Not only has this encouraged healthy competition, but it has also helped to keep imposters and dangerous operators out of the industry.
Economic growth and job creation
One of the benefits of the enactment of online casino gambling laws in Canada is the tax revenue. This has improved the economy of the nation and created job opportunities for people in the areas of customer support, compliance and technological development.
Stricter advertising and marketing rules
In a bid to avoid problem gambling of any sort, a policy has been enacted to combat excessive promotion around bonuses and exclusive gambling offers. Operators in Canada are expected to comply with this rule to avoid promoting to minors and people that are subject to vulnerability.
Future predictions for Canadian online gambling laws
Over the next few years, we expect:
Stricter enforcement against offshore gambling sites
It is possible that stricter enforcement of gambling laws in the industry will be enacted. This may include stronger surveillance of player IP addresses and the restriction of suspicious financial activities.
Increased federal involvement
It is predicted that there will be heightened federal government involvement in online casino gambling activities. This could help to unify casino standards and ensure there is a consistent policy direction.
Enhanced responsible gambling initiatives
There will likely be more funding to support self-exclusion programs and ensure that responsible gaming is established across all provinces.
Final remarks
Over the past few years, Canada's online gambling laws have undergone several changes. These have contributed to providing a safe gaming environment for players and have offered immense benefits for iGaming-focused businesses.
See: Meta’s AI-Powered Metaverse to Kickstart New Era in Gaming?
While there may be a few challenges, especially regarding the regulation of offshore operators, the Canadian iGaming industry is sure to enjoy a promising future. As we look forward to more improvements from provinces across the country, Canadian gamblers can expect to enjoy a much safer gaming environment and even more diverse gaming options.
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