Canada - Federal Frame and Provinces

Summary

Canada's legal model is federal in form, decentralized in essence.
The basis is Criminal Code (Title VII, Articles 201-207), which formally prohibits gambling but allows provinces to administer and license it in the public interest.
The federal government does not directly license gambling companies: responsibility is delegated to provincial authorities (Crown corporations).
Starting in 2021 (after the legalization of single-event sports betting), the market entered a phase of digital restructuring - from government monopolies to regulated open ecosystems (especially in Ontario).

Federal legal basis

Criminal Code of Canada (s. 201–207)

§ 201-202 - prohibit "common gaming houses," "disorderly houses" and unlicensed bets.
§ 207 - Defines exceptions by allowing provinces to conduct and regulate games, lotteries, and wagering in the public interest.
§ 207 (1) (a) - authorizes each province to conduct or administer lotteries and gambling.
§ 207 (1) (b-h) - permits the issuance of licenses to operators acting on behalf of the province.

Single-Event Sports Betting

Since August 2021 (Bill C-218, Safe and Regulated Sports Betting Act), the provinces have received the right to independently regulate bets on individual sporting events (previously only parliaments were allowed). This gave impetus to the creation of iGaming Ontario and the renewal of online platforms.

Provincial model: who regulates

iGaming Ontario: 2022 breakthrough

Ontario became the first province in Canada to implement a regulated open online model.

• permitting private operators (in partnership with the province);
• tax collection (GGR sharing - about 20%);
• technical and Responsible Gaming control.

Since April 2022, dozens of private brands have been legally operating at ON, forming a competitive market that meets international MGA/UKGC standards.

Online gambling and offshore

Online gambling is allowed only under provincial licenses or operators (Crown corporations).
Offshore sites (for example, Curacao, MGA) are not recognized as legal in Canada, but are not always explicitly prohibited for users (there is no blocking mechanism).
iGaming Ontario has created a single white list of operators and brands.
The federal level (through the CRTC and Competition Bureau) controls misleading advertising and protects consumers.

Taxation and finance

Federal level: there are no taxes on winnings (for individuals, if the game is not "professional activity").
Provincial level: Operators pay a share of GGR (typically 20-25%) to the government.
Ontario: revenue share model via iGO (about 20% GGR).
Remaining provinces: revenues go directly to the Crown corporations budget.

Responsible play and consumer protection

All operators are required to implement Responsible Gambling/PlaySmart/RG Check programs.
Provinces are implementing tools: self-exclusion, deposit limits, play-time notifications.
Ontario has integrated the MyPlayOntario mechanism on all sites, which synchronizes limits and activity statistics.

Advertising and inductions

Gambling advertising is regulated through AGCO Standards and the federal Competition Act.

• direct advertising to minors;
• use "free" offers without specifying conditions;
• offer inductions without the player's consent.
• Ontario (2024): Half-banned athletes and influencers from gambling adverts.

Law enforcement and judicial practice

R. v. Furtney (1991) - The Supreme Court upheld the provinces' right to administer gambling.
R. v. Starnet Communications (2001) is the first case against an unlicensed online operator in BC.
iGO Enforcement (2022-2025) - active work against "gray" brands, including Bet99, Pinnacle, Bodog (before their legalization).

What is allowed/forbidden

• Online betting and casinos through licensed provincial/regional platforms.
• Offline casinos, lotteries, bingo and charitable gaming under provincial supervision.
• Ontario has private online operators (with an iGO license).

• Unregistered online casinos and bookmakers.
• Advertising and inductions without AGCO/provincial permission.
• Ground operations without a Crown corporation license.

Compliance checklist (for operators and partners)

1. License: obtain permission within the province (for ON - iGaming Ontario; for others, a state corporation).
2. PoCT/GGR: Maintain GGR records and share with the province.
3. Responsible Gambling: mandatory RG mechanisms and reporting (RG Check).
4. AML/CTF: compliance with FINTRAC and the federal Proceedings of Crime (Money Laundering) and Terrorist Financing Act.
5. Marketing: Comply with AGCO Standards - no "free" inductions and no underage sponsorship.

Perspective (2025-2027)

Ontario: Further tightening of advertising and adoption of RG AI tools.
Alberta and British Columbia: Discussing admission of private operators under the ON model.
Federal level: unification of requirements for AML and digital payments.
Quebec: Maintains state monopoly, tightens content controls.
Overall, Canada is moving toward a coordinated but multidisciplinary regulatory system, where provinces retain autonomy and the federal code sets limits.

Terms

Criminal Code (s. 201-207) is the federal legal basis for gambling.
Crown Corporation is a provincial state-owned company that manages gambling activities.
iGaming Ontario (iGO) is a regulator/operator of private online brand licensing.
AGCO — Alcohol and Gaming Commission of Ontario.
PoCT - tax at the place of the rate (in Canada - through the share of GGR to the provinces).
RG Check/PlaySmart - responsible play standards.