Legal Matters

What is the Legality of Online Gambling in Canada?

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Many legal experts describe online gambling in Canada as a grey area. That means there are no clear laws about it, which explains why some people think it’s legal and others believe it’s banned.

Does that mean the police could one day come after your laptop for playing a few rounds of poker online? It’s unlikely. In fact, the Canadian Revenue Agency might never come after you too whether you win $100 on roulette or $1 million on slots. Continue reading to find more information below.

Gambling is a Provincial Matter
Gambling is a provincial issue according to country laws. There’s no grayness around it. From Alberta to BC, Manitoba to Quebec, each jurisdiction decides whether to permit gambling businesses.

So far, nearly every province allows one or more forms of online gambling. British Columbia first legalized online lotto games and sports betting in 2004. In 2009, it permitted online poker and casino games like slots and blackjack in 2010.

Quebec, Alberta, Manitoba and Ontario have similar gambling laws. In the Maritime province of Nova Scotia, New Brunswick and Prince Edwards Island, online gambling falls under the jurisdiction of the Atlantic Lottery Corp. It permits lotto games but restricts slots and card games.

To be clear, many provincial gambling sites accept bets from local residents only. Manitoba lottery apps serve players in Manitoba and Alberta poker websites open account for people in Alberta alone.

Offshore Casinos are the Grey Area
Although Canadian laws dictate provinces are responsible for regulating gambling, they don’t talk about offshore casinos. They don’t state whether it’s legal for Canadians to accept bets at foreign betting sites. And they don’t mention whether offshore operators can welcome Canucks.

According to Michael Lipton, a gaming law expert, Canadian players commit no crimes when they bet at offshore casinos. As such, you can find legal sites for online gambling in Canada. And you can bet on slots, blackjack or poker and you’ll be safe.

That said, online casinos based overseas can’t set up their offices on Canadian soil. Starnet Communications International, an operator based in Antigua, once opened an office in Vancouver with an attempt to operate in Canada.

 Unfortunately, the B.C. Supreme Court determined Starnet couldn’t operate in Canada and it ceased its operations in 2001. For clarity, some online casinos host their servers in the country, mainly at the Kahnawake Gaming Commission offices in Quebec. But they’re licensed elsewhere.

Online Gaming Profits are Untaxed
Because the Federal Government has not laws about online gambling, the Revenue Agency doesn’t tax iGaming profits. People have been playing online casinos for over a decade. And the Revenue Agency has never gone after anyone’s money.

The most publicized online casino win was a $7.5 million jackpot winner in 2015. It was the largest payout a Canadian has won through gambling. Naturally, the news spread tremendously throughout the county. But the winner, who chose to remain anonymous, was never taxed.

A handful of more Canucks have won $100,000 to $11 million since 2015. And barring for professional gamblers, no one has had to pay taxes on their profits. In case you’re wondering, Americans must pay taxes on their online casino profits, sometimes as much as 30%.

A Wide Range of Games Allowed
Although providences restrict some games, offshore casinos do not. They let Canadians gamble on just about anything: slots, bingo, video poker, blackjack, scratch cards, poker and baccarat. What’s more, they provide a large collection of variants.

That way, you don’t just find a handful of slots online. There are hundreds of them from classic games to jackpots, Megaways to VR slots. Likewise, you can play Texas Hold’em, Hi-Lo, Omaha, 7-Card or Caribbean poker.

Another benefit of Canadian online casinos is that they provide games from many software providers. This ensures you can evaluate the features in games offered by several developers to choose the best-quality slots or card games.

Still on games, you can play slots, poker and blackjack on your mobile devices. No longer are you limited to your workstation. Instead, you can pull out your iPhone while on the subway, beach or sofa and play a variety of games.

Sports Betting Sites a Click Away
Like online casinos, sports betting websites are always a click away. The best sportsbooks are based in the UK and Malta, licensed, safe and regulated. They provide betting markets for Canadian sports leagues, American, European and world sports.

What’s more, they provide the latest betting features to Canadians: in-play, mobile, and partial withdrawal services. On the other hand, offshore casinos allow Canucks to bet and withdraw their profits without paying taxes.

So, why don’t sportsbooks sponsor Canadian sports leagues? It is all about the laws. Sure, you can bet at a sportsbook based in London. But it has no license to operate in Ontario or Saskatchewan and therefore can’t support local leagues.

 Bonuses Lure Canadians
In Some countries, online casinos are allowed to operate without handing out bonuses, at least not large amounts. Luckily, Canadians aren’t restricted by such measures. They are welcomed with generous amounts of betting money, up to $1000 at the best casinos.

This money can be used to play a full range of games and win real money. But in many cases, there are some restrictions that guide players on how to use promotional cash. For example, there’s a betting limit, games you can’t play and the maximum you can win.

Problem Gambling Protection
One of the disadvantages of not having clear gambling laws is that it leaves some players vulnerable. In the UK, players can contact the Gambling Commission if they feel like an operator exploited them due to their addiction.

In Canada, players only hope casinos will act responsibly. Fortunately, the best casinos in Canada must protect all players by law. They must have tools to detect addicted players and stop them. Or they can let players self-examine and limit their budgets if they have to. All the same, many online casinos have a responsibility to help players play responsibly.

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