Canadian Gambling Laws
Online gambling is relatively new in Canada—well, it is new for most of the world. Every day, new and amazing sites pop up in Canada. The problem is that, unlike in other countries, there has never really been a drive to enact online gambling legislation in Canada.
In fact, there is still no law in Canada that allows online casinos to operate in the country, or any casino for that matter. Now, don’t get us wrong. This does not mean that you should not gamble online in Canada. In fact, it seems to be perfectly fine to do so. Nobody has ever been prosecuted for gambling at an online casino in the country, and no casino vendor has been either.
The construction of various casinos and the establishment of several lotteries throughout the country are basically screaming ‘this is legal’, even if there is no law that specifically says that it is.
Part 4 of the Criminal Code
Part 4 of the Criminal Code of Canada makes it illegal to operate a commercial gambling business in Canada. However, it is worth noting that this law was enacted long before online casinos existed.
This means that it does not expressly prohibit online gambling. However, some provinces in Canada have ruled that this part of the Criminal Code applies to online gambling. Once again, it is worth pointing out that nobody has ever been charged with online gambling in Canada. It does not seem to be a crime in the eyes of the courts.
Provinces Can Licence Online Casinos
It is worth noting that the provinces in Canada have the right to licence online casinos if they wish to do so, much like many other countries. Some provinces, notably British Columbia and Quebec, licence their casinos, which means it is perfectly fine to gamble there, even though the letter of the law technically prohibits it. This is what we mean when the country seems to accept online casinos, which is nice.
Online Poker
It is worth noting that many of the online poker sites available in Canada are not actually hosted within the country. You might occasionally find one hosted on an Indian Reservation, but these are rare. However, we want to emphasise that no law prevents online casinos outside Canada from offering their services to Canadians, which is how they operate.
A point to remember: if you plan to gamble at an online casino based outside Canada, you should verify that it is licensed to operate in its home country. The last thing you want is to gamble at a suspicious online casino. If you gamble at an online casino licensed in the United Kingdom or Europe, you should be safe. However, always check the licence to ensure the site is genuine and transparent about its offerings.
Online Sports Betting
It is worth noting that, although very restricted, sports betting is regulated under Canadian law. For example, you can only make parlay bets over three matches. You can’t bet on individual sporting events at the moment. However, there is a chance that this restriction will be lifted soon.
You are unlikely to have any issues gambling on a betting website outside Canada. Still, you must check the betting company's license to know what you are getting into.
Paying Taxes
In Canada, you do not need to pay taxes on any gambling wins. The only exception to this rule is if you are gambling professionally. For example, if you derive your income from playing poker day in and day out, there is a high chance that you will need to pay taxes on whatever you earn. If you continue playing for fun, you should be ‘good to go’.
Summary of Gaming Laws In Canada
Gambling laws in Canada are likely to change significantly going forward, particularly as the country appears to be becoming more liberal in its policies. So, expect the rules and regulations we discussed on this page to change over the coming years.