Gambling Laws in Canada (2025)

Canada has a complex regulatory landscape for gambling. In general, gambling is legal in Canada only when it’s an activity regulated by one of Canada’s 10 provinces, three territories, or First Nations authorities. This means that commercial gaming, including online gambling, is allowed if it’s conducted or approved by local authorities. To open a casino in Canada, it’s necessary to comply with local laws, which differ depending on province and territory. 

The situation for gambling companies operating in Canada becomes even more challenging due to competition with online gambling providers outside of Canada. Canadians can typically access a gray market of offshore companies that provide gambling services that are not subject to Canadian regulations. As these offshore companies are not registered with local authorities and do not follow their strict standards, they may face restrictions such as IP blocks, payment blocks, and advertising limitations. 

This combination of potentially confusing obstacles creates difficult conditions for the registration and profitable operation of gambling companies in Canada. However, over the last few years, the country has lifted some of its regulations and simplified some of its registration procedures.

Provincial legal authorities may issue licenses to private companies to operate gambling platforms and provide gambling-related services. To do so, each of Canada’s provinces has established separate gambling authorities that register and regulate gambling providers, including online casinos.However, in April 2022, a new provincial internet gaming agency, iGaming Ontario, began operating in Ontario, indicating a change in regulatory direction. This development in Canada’s historically strict gambling industry enables online gaming providers to secure licensing from the Alcohol and Gaming Commission of Ontario to provide services in the province.

This article provides an overview of the main regulations of each of Canada’s provinces and territories, before explaining recent developments in the country’s regulatory landscape. You’ll also learn how to register your online gaming website in Canada and safely comply with relevant laws.

Is online gambling legal in Canada?

Like offline gambling, while online gambling is indeed legal in Canada, the exact laws differ between Canada’s 10 provinces and three territories. 

In essence, the Criminal Code of Canada allows gambling as long as it is licensed and regulated by province or territory authorities. This effectively means legislation for gambling, including online gambling, is provided at a provincial or territorial level, similar to the Canadian approaches to alcohol and cannabis laws. 

For example, an 18-year-old may gamble legally online in Alberta but they wouldn’t be allowed to do so if they were to cross over into British Columbia, where the legal age is 19.

While adults from all provinces and territories may gamble online in Canada, some provinces offer gambling products that align with province regulations designed to increase safety and encourage responsible gaming that may not be offered by an offshore casino. 

There are many further peculiarities in Canadian gambling laws. One example of this is the Kahnawake Gaming Commission, which uses its sovereign First Nations rights to offer online gambling services across Canada. 

This Commission is based in the Kahnawake First Nations Reserve just across the Saint Lawrence River from Montreal, which has become a major player in online gambling in the country. There are many other First Nations gambling regulators across Canada, but they tend to work with provinces rather than independently of them, as in the case of the Kahnawake Gaming Commission.

Suggested read: Know Your Enemy: An Interactive Guide to iGaming and Gambling Fraud (2024)

Local gambling regulations

Despite having many similarities, Canada’s provincial and territorial regulators and regulations differ from one another with regard to issues like who is allowed to operate and how to register. 

The table below includes links to legislation explaining exactly which companies may be registered in each province or territory to provide gambling services. Each link also provides instructions on how to register and the penalties for failing to comply.

• Alberta

  Alberta Gaming, Liquor, and Cannabis Commission allows only charitable and religious organizations to register as gambling service providers. Besides that, the province has only one regulated online gambling website called PlayAlberta.ca. The main regulation that operating entities need to follow are explained in the Gaming, Liquor, and Cannabis Act. The province also looks like it may emulate Ontario’s iGaming market in 2025, although more time is needed before such a plan can be rolled out.

• British Columbia

  The Gaming Policy and Enforcement Branch of the Ministry of Finance (British Columbia) allows companies to operate under their provision. The gambling regulation of British Columbia is provided by the Gaming Control Act of 2002. This province has only one regulated online gambling website called PlayNow, which has expanded its services to other provinces in Western Canada like Manitoba and Saskatchewan.

• Manitoba

  Manitoba Liquor and Lotteries Corporation is in charge of regulating gambling service providers. The authority registers companies and ensures the province’s gaming and lottery integrity. Additionally, it conducts background checks on registered companies. Companies that want to operate in Manitoba need to follow The Liquor, Gaming and Cannabis Control Act and The Manitoba Liquor and Lotteries Corporation Act. Residents of Manitoba have been able to gamble online using PlayNow since 2013.

• New Brunswick

  The Gaming Control Branch of the Department of Public Safety (New Brunswick) is in charge of registering gambling service providers. The authority allows companies to develop, organize, undertake and conduct and manage lottery schemes on behalf of the provincial government. The main regulation on the matter is the province’s Gaming Control Act of 2008.

• Newfoundland and Labrador

  The Consumer Affairs Division, Consumer and Commercial Affairs Branch of Service NL is responsible for regulating gambling activities in Newfoundland and Labrador. The province doesn’t have any land-based casinos and only allows non-profitable games of chance, bingo, lotteries, and card games.

• Nova Scotia

  The Alcohol, Gaming, Fuel and Tobacco Division of Service Nova Scotia is in charge of registering gambling service providers. The institution also regulates disputes and complaints within the industry. The institution operates based on the Gaming Control Act of 1994-1995. In 2022, the province passed legislation directing online gambling into legal channels in a bid to counter unregulated operators.

• Ontario

  The Ontario Lottery and Gaming Corporation is the main regulatory body in Ontario. The province is currently the least restricted in Canada as it has a variety of land-based casinos. There are two main regulations in the region: the Gaming Control Act of 1992 and the Ontario Lottery and Gaming Corporation Act 1999. Oversight is provided by the AGCO, alongside iGaming Ontario for online operations. The introduction of the iGaming Ontario regulator in 2022 has improved the accessibility of online gambling service providers in the province and turned it into one of North America’s largest iGaming markets.

• Prince Edward Island

  The Prince Edward Island Lotteries Commission is in charge of regulating casino and online gambling service providers. The province’s main regulation is the Lotteries Commission Act. With the approval of the Lieutenant Governor in Council, the Commission can develop, organize, undertake, conduct and manage lottery schemes on behalf of the provincial government.

• Quebec

  The Regie des alcools, des courses et des jeux and Loto-Québec are the official institutions regulating gambling in Quebec. The first focuses on gambling, public lotteries, horse racing, and alcohol. The second deals with gambling halls, lotteries, and bingo games. The main provincial regulation is the The Act Respecting Lotteries, Publicity, Contests, and Amusement Machines. Land-based casinos operate in the province as does the online gambling service EspaceJeux. Quebec has long had a reputation of being gambling-friendly since the 1970s.

• Saskatchewan

  The Saskatchewan Liquor and Gaming Authority is the main gambling regulatory body in Saskatchewan. The legislative framework in the province is composed of several regulations, the most important being the Alcohol and Gaming Regulation Act of 1997. Residents of Saskatchewan have been able to gamble online using PlayNow since 2022.

• Yukon, Nunavut, and Northwest Territories

  Canada’s three territories, Yukon, Nunavut, and Northwest Territories, have underdeveloped gambling industries, with only one casino and no registered gambling websites in any of them. However, citizens can use foreign gambling websites.

Recent developments 

Some parts of Canada are gradually becoming more open to the gambling industry. Ontario’s 2022 iGaming initiative is a clear example, as it promises to simplify market entry for third parties. Its introduction has prompted other provinces like Alberta to look into similar programs in the hopes of replicating Ontario’s success. 

In addition, the federal government of Canada passed Bill C-218 in 2021, which lifted restrictions on single-event sports betting. As a result, sports betting is legal in Canada and available online all across provinces and territories. 

As Canada’s gambling regulations continue to evolve, it’s important for companies to follow changes in each province. As this is a rapidly changing field, it is crucial to employ a thorough KYC solution for access to this market. This enables operators to react quickly to regulatory developments across provinces.

Ontario’s iGaming market is an indication of a possible boom in gambling across Canada, and a model that looks likely to spread beyond the province. But how does it work and how can companies register to engage in the market?

Ontario’s iGaming market

In November 2020, the government of Ontario announced its plan to create iGaming Ontario, a gaming market regulated by the Alcohol and Gambling Commission of Ontario (AGCO). iGaming Ontario began registering companies in fall 2021, and the market launched in April 2022. 

The introduction of iGaming Ontario allows third parties to provide online gambling services by registering with the AGCO and entering into an agreement with iGaming Ontario. This system has significant consequences for Canada’s gambling industry, as it finally opens the market for outsiders. Still, Ontario does not allow all third parties to act independently and iGaming Ontario thus performs a monitoring function.

It is also worth noting that iGaming Ontario may separate from the AGCO in the near future as an independent body that could expand beyond Ontario and indeed Canada. 

Who is affected by iGaming Ontario?

With the launch of iGaming Ontario, companies seeking to launch an online gambling service for the citizens of Ontario must register with the AGCO. There are several differences in the registration process for gaming operators and gaming-related suppliers. 

According to the AGCO, any entity operating a gaming website within Ontario falls under the category of gaming operators. There is no clear definition of what “operating a gaming website” means, but there are activities that represent an entity as one operating such a website, such as having an ongoing responsibility for key decision-making activities.

The AGCO defines a “gaming-related supplier” as an entity that “manufactures, provides, installs, tests, maintains or repairs gaming equipment or who provides consulting or similar services directly related to the playing of a lottery scheme or the operation of a gaming site.”

How to register

Before registering with the AGCO, companies need to get a certificate from the Independent Testing Laboratory regarding the serviceability of their gaming devices. After that, they need to create an account with the AGCO.

Documents

Gambling operators need to submit the following documents:

• Operator Application
• Registrar’s Standards Gap Analysis
• Personal Disclosure for individuals working in the company
• Entity Disclosure
• Regulatory fee
• Any requested investigation fee
• Supporting documents (as applicable).

The complete set of documents required for the operator application, as well as the list of individuals falling under personal disclosure, can be found here.

Gambling-related suppliers need to submit the following documents:

• Supplier Application;
• Personal Disclosure for individuals working in the company;
• Entity Disclosure (if applicable);
• Regulatory fee;
• Supporting documents (as applicable).

The complete set of documents required for the supplier application, as well as the list of individuals falling under personal disclosure, can be found here.

iGaming Ontario agreement

Besides registering with the AGCO, companies need to sign an agreement with iGaming Ontario. This procedure consists of several steps:

• Execute a Non-Disclosure Agreement (NDA) with iGaming
• Execute a letter of agreement with iGaming
• Set up and configure access to iGaming’s Secure Data and Information Communication Channels
• Complete iGaming’s Anti-Money Laundering (AML) Information Submissions
• Complete iGaming’s Financial Information Submissions
• Participate in Operator Systems & Data Readiness Cycle with iGaming
• Execute the Operating Agreement with iGaming.

Both the agreement and registration process can take place simultaneously. A full explanation of each step can be found on the iGaming Ontario website.

Fees

Gaming operators in Ontario have to pay an annual fee of CA $100,000 (approximately $70,000) to maintain a gaming website. Each gaming website should be registered separately. 

Gaming-related suppliers have to pay CA $3,000 (approximately $2,100) or CA $15,000 (approximately $10,500) depending on their category.

How to be compliant

During the registration process, companies have to provide documentation explaining their strategy for confronting illegal activities, such as money laundering, terrorism financing, and fraud. To ensure that customers won’t abuse their gaming websites, companies need to implement Anti-Money Laundering (AML) solutions, including Know Your Customer (KYC) and Customer Due Diligence (CDD) measures. Accordingly, companies should collect at least the following information from a customer during the registration process:

• Name
• Date of birth
• Address
• Method of identification for subsequent log ins, such as username
• Player contact information

Other information may be required by the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and the regulations under it.

The above information must then be verified to ensure its authenticity. This is done by collecting government issued documents. Additional procedures such as a liveness check can also take place. One of the main goals of such processes is to ensure that players are old enough to use gaming websites. 

Companies have to keep track of player activity, such as:

• Deposit and withdrawal history, and current balance
• Method and source of funds used for transactions
• Date and time of previous login
• Gaming event and transaction history (game session outcomes and game transactions) including, in sport and event betting, the date and time of past and current bets, and the date and time at which past bets were settled, and information about current bets
• Total amount of money wagered for session and/or period of time
• Total amount of money won or lost for a session and/or period of time
• Account balance at start and end of session.

In addition, companies should monitor whether their customers are on any sanctions or Politically Exposed Persons (PEP) lists. 

Suggested read: Politically Exposed Person (PEP)—All You Need to Know

In case suspicious customer activity is detected, companies should take action immediately and report the suspicious activity to the AGCO’s Registrar. 

Expected key regulatory changes

Canada’s gambling regulatory landscape is likely to change to reflect how the nature of gambling itself is changing. A few of the key expected changes are as follows:

A review of NFT gambling and DeFi regulation as part of a hinted-at wider push against the gray market.

Plans are already in place in Alberta to emulate iGaming Ontario’s open online gambling market, and other provinces could follow.

iGaming Ontario could separate completely from the AGCO in 2025 as an independent entity.

iGaming Ontario could expand beyond Ontario and even Canada.

An increased federal AML focus to combat money laundering through online gaming sites.

Ramped up efforts to tackle the unregulated gray market of offshore gambling companies operating in Canada, shown by Manitoba’s injunction against Bodog.

Approval of new peer-to-peer games in Canada’s markets like poker and fantasy sports.

How can Sumsub help?

If you want to learn about the gaming industry and its regulations in the US, Canada, and Central America, check our complete guide on the topic.

FAQ

• Are online casinos legal in Canada?

  Yes, regulated online casinos are legal in Canada as long as they are approved by the province or territory in which they operate as per the Criminal Code of Canada. Canadians can also access a gray market of offshore gambling services.

• When did Canada legalize online gambling?

  While gambling in general was made fully legal in Canada in 1985, online gambling has never been illegal per se. Until regulation, it was something of a gray area. Provinces like British Columbia have introduced their own online gambling services since 2010.

• Is betting legal in Canada?

  It depends on what the bet is on. However, sports betting has been federally legal in Canada since 2021.

• What is the punishment for illegal gambling in Canada?

  Punishments for illegal gambling in Canada depend on the nature and severity of the offence in question, as well as other factors like judicial discretions. While penalties vary under the Criminal Code, operating an illegal gambling service may result in up to 2 years in prison or fines while participating in illegal gambling may result in fines or imprisonment up to 6 months.