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Is Online Gambling Legal in Canada?

Online gambling has become a worldwide institution, popularised to great heights with the advent of technology. Various regulatory bodies have risen to prominence in their respective jurisdictions, like the Malta Gaming Commission or the UK Gambling Commission. This has helped create a conducive environment for different brands to thrive and make online gambling a transparent entertainment option.

Canadian punters can place bets in Canadian online casinos, which are basically operated and regulated in Europe. Players can transfer funds seamlessly through Canada-friendly payment gateways like PayPal, ecoPayz, and Interac. However, it’s unlikely to find a Canada-operated native online casino brand since operating an online casino is still illegal in Canada. If you are from Canada, this article will straighten out all your legal questions about online gambling laws in Canada.

History of Gambling Laws and Regulations in Canada

Until 1960, almost every form of gambling was illegal, although raffles and bingo were allowed in charitable events. Over time the laws relaxed, and the Canadian government allowed some provinces to regulate local casinos. Things completely changed after 1985 when casinos were made legal, and Canadians no longer went to Las Vegas for their bets.

Current Online Gambling

In its current state, the legal structure of gambling laws in Canada are divided amongst its provinces. The Canadian Gaming Commission oversees the gambling industry at the national level while much power has been transferred to the provinces. However, most laws relate to land-based casinos or lottery companies, both of which require strict licensing.

There are no formal laws against online gambling, but Canadian laws prohibit companies from setting up online casinos from their soil. However, there is no prohibition on Canadian citizens to bet in offshore online casinos.

Kahnawake Gaming Commission 

The Kahnawake gaming commission was formed in 1996. It is the governing body that provides licences and regulates online casinos located in Canada. This commission separately has the right to regulate offshore casinos because Canadian laws and regulations do not formally prohibit it.

This is where things get complicated, and some might say that Canadian gambling laws are legally in a ‘grey area.’ Even though there is no regulation against online gambling, most online gambling servers are operated on Canadian soil by Mohawk Internet Technologies. The commission indirectly regulates some aspects of fair play and prevention from crime and criminality.

Good News for Canadian Online Casino Players

Canadian players are in a sweet spot in terms of online gambling laws. Not only is it legal for Canadians to wager money on offshore online casinos, but Canadians also don’t have to declare their winnings from lottery or online gambling while filing their income tax. However, this is restricted to recreational use and punters who use online gambling as a full-time profession are taxed as per the Income Tax Act.

Future Developments on Online Gambling in Canada

The government is not in a hurry to publish specific rules on online gambling, so we don’t expect online gambling to be banned or tightened with strict regulations in the near future. But we can expect the government to strengthen the Kahnawake Gaming Commission to form a uniform code of conduct to consolidate different provisional laws.

Contrary to popular belief, regulation strengthens the iGaming scene, making it possible for big developers to invest in exciting games. We hope the new Canadian laws on gambling will provide safety and transparency to the whole online gambling community.

Notable Provincial Gaming Regulators 

  • Ontario: Ontario Lottery and Gaming Corporation
  • Prince Edward Island: Prince Edward Island Lotteries Commission
  • Saskatchewan– Saskatchewan Liquor and Gaming Authority
  • Manitoba: Liquor and Gaming Commission of Manitoba
  • Alberta: Alberta Gaming and Liquor Commission
  • British Columbia: BCLC
  • New Brunswick – New Brunswick Gaming Control

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