Legal Status of Online Gambling

You’ve played at a few Vancouver casinos or in Toronto and had a good time, maybe you even won a few bucks. Now you’re thinking why not play online, save yourself the hassle of driving out to a casino. You’ve heard there are plenty of good online casinos but you’re not sure if they’re legal and if you’ll find yourself on the wrong side of the law for playing at one of them. Here’s our researched take on the legal status of online gambling in Canada which we hope will put you at ease.

Five Key Points You Need To Know

1) Canadians are not at any risk of by playing at an online casino site, whether they play for fun or as a part-time job

2) No Canadian citizen has ever been prosecuted for playing at an online gaming site (casino, poker or sportsbook)

3) It is illegal to operate an online casino without a license if based within Canada, all our recommended casino sites though are located offshore

4) Any winnings from your gaming activities are not taxable unless your gaming activities are seen as a form of employment based upon skill, frequency and expectation of payout – for gamers playing for fun at an online casino, winnings won’t be taxable

5) The Criminal Code of Canada is the official codification of criminal acts and procedures; it does not explicitly criminalize playing at an online casino site

More Useful Info

Canada vs U.S: It is clearly illegal in Canadian law to operate an online casino/gaming site from within Canada (i.e. legally formalized there, playing servers located there) without a license. However within the Criminal Code of Canada there are no laws that explicitly address offshore gaming sites.

This is the key distinction between the U.S and Canada. In the U.S offshore online casinos are targeted by the Unlawful Internet Gambling Enforcement Act of 2006, which prohibited banks and other payment processors from conducting transactions with offshore gaming sites. In order to stay on the right side of the U.S authorities following passage of the act, virtually all reputable gaming sites withdrew from the U.S no longer accepting players based in the United States.

In Canada there are no specific laws targeting gaming sites/companies located offshore, this is why most of them are happy to continue accepting Canadian players. To characterize the different legal situation appertaining to the countries –  Canada can be considered to be a ‘grey’ market where the playing at online gaming sites is neither explicitly legalized or outlawed, whilst the U.S (at least prior to recent developments in the states of New Jersey, Delaware and Nevada) is a ‘black’ market.  In distinction to both, an example of a ‘white market’ would be the U.K where online gaming has been explicitly legalized.

Regulators and Gaming Authorities: The reformed criminal code of 1970 opened up gambling by allowing the individual provinces within Canada to regulate and license gambling in their regions. This led to the development of a number of land based casinos as well as lotteries run by the provincial gaming authorities.

The provincial gaming authorities:
OntarioOntario Lottery and Gaming Corporation
AlbertaAlberta Gaming and Liquor Commission
British ColumbiaBCLC
ManitobaLiquor and Gaming Commission of Manitoba
SaskatchewanSaskatchewan Liquor and Gaming Authority
New BrunswickNew Brunswick Gaming Control
Nova Scotia – Alcohol, Gaming, Fuel and Tobacco Division Service of Nova Scotia
QuebecLoto Quebec
New FoundlandService NL
Prince Edward IslandPrince Edward Island Lotteries Commission

It’s important to note that many of these gaming authorities run their own gaming portals often featuring casino games. Being of a poorer quality though with regards to game selection, quality and bonus/promotions than offshore sites we don’t recommend them

Kahnawake Commission: The Kahnawake Commission is an interesting anomaly. Located in Quebec the Mohawk territory of Kahnawake saw the potential of online gaming in 1996, subsequently setting up the Kahnawake Gaming Commission of that year. As an Indian reservation and thus a sovereign legal entity, the Mohwak commission is not bound by Canadian law and thus has the jurisdictional right to license and regulate offshore online gaming sites.

Initially the Kahnawake Commission was a popular licensing authority with many of the older Microgaming brands licensed there. Over recent years though it has fallen out of favour somewhat with many e-gaming companies/sites preferring to be licensed by the gaming authorities in Malta or Gibraltar.

For more information on the gaming authorities which license our recommended casinos see this article.

Future Legal Developments

What future legal developments can we expect with regards to online gambling in Canada?

Essentially no one really knows, and it seems that all involved parties are holding a ‘wait and see’ attitude. The government has currently shown no inclination to tighten the law and explicitly stop Canadian citizens from playing at ‘offshore’ sites despite the loss of tax revenues. Similarly a  U.K style fully legalized  ‘white market’, where offshore sites operate on the same legal basis as the sites run by the provincial gaming authorities also looks unlikely, not least because the provincial gaming authority sites would lose out even more to their superior ‘offshore’ gaming sites.

With the Canadian government focusing on other threats and legislative areas, it seems the best bet is a continuation of the status quo one where Canadian gamers are free to continue playing at a great selection of international casino sites.

If you’re now ready to start choosing a casino head to our casino reviews page which lists all our recommended and reputable sites, while viewing our dishonest casino list to find which ones to avoid. Alternatively visit Royal Vegas casino via the button below if you’re ready to play.

 

 

*DisclaimerThis article should not be considered legal advice.