How Canada’s Evolving Betting Laws Are Changing the Face of Online Gambling

Canada’s gambling laws have undergone significant transformations over the past century, moving from a rigid, restrictive framework to a more permissive and regulated system. The foundation of these regulations was set in 1892 with the Criminal Code, which initially made all forms of gambling illegal. However, as the country progressed into the 20th century, gradual changes were made to reflect shifting public attitudes. 

Early relaxations included the legalisation of charity lotteries in 1901 and parimutuel betting on horse racing in 1910. Even with these concessions, strict controls remained, such as the temporary ban on horse race betting during World War I.

The most transformative shift occurred in 1969 when the Criminal Code was amended to allow provincial governments to run lotteries. Canada’s evolving approach to gambling has also opened doors for modern innovations like online platforms, where legal bookmakers in Canada operate under strict regulatory frameworks. These regulations ensure fair play and consumer protection while enabling the industry to thrive in a digital landscape. Today, Canadian bettors can easily access a wide range of legal betting options, further solidifying the country’s status as a leader in the global gambling market.It led to Canada’s first provincial lottery in 1974, which was created to fund the Montreal Olympics.

This trend of gradual liberalization continued, and by 1976, provinces were granted more control over sports lotteries, marking a new era where gambling was not only tolerated but seen as a viable means of generating public revenue.

Ontario’s iGaming Market: Leading the Charge

Ontario has been at the forefront of Canada’s betting law reforms, making a bold move in April 2022 by launching a regulated iGaming market. Before this, online gambling existed in a legal gray area where private operators were barred from direct entry into the market. By contrast, Ontario’s new model allows private operators to compete in a regulated environment, provided they meet the stringent requirements set by iGaming Ontario​.

Ontario’s decision to allow unlimited licenses has attracted over 30 private operators, ensuring robust competition and consumer choice. In turn, this has spurred innovation like the inclusion of live betting. The operators also continuously offer promotions to attract new users, indirectly increasing provincial tax revenues. 

The Impact of Bill C-218 and Single-Event Sports Betting

A crucial turning point for Canada’s betting laws was the passing of Bill C-218 in August 2021, which legalized single-event sports betting nationwide. Previously, Canadian bettors were limited to parlay bets, which required wagering on multiple outcomes. This restriction stifled the market’s potential growth, as many bettors turned to offshore platforms to access more varied betting options​.

The legalization of single-event sports betting has opened up a multi-billion-dollar market, allowing provinces to regulate and tax these activities. Ontario, once again, took the lead by integrating single-event betting into its newly minted iGaming market. As a result, revenues for the government and operators increased, and the consumer environment became more transparent and secure. 

Regional Differences and Indigenous Gaming Rights

Ontario may be leading the charge with its comprehensive iGaming system, but other provinces are also exploring ways to expand their online gambling markets, each with its own approach. British Columbia, for example, operates its online gaming services through the British Columbia Lottery Corporation (BCLC), which maintains a provincial monopoly on internet gaming. 

In contrast, Alberta has begun to open its doors to private operators, especially in sports betting, through initiatives led by the Alberta Gaming, Liquor, and Cannabis Commission (AGLC). 

Meanwhile, the Atlantic provinces, including Prince Edward Island and Newfoundland, have cautiously entered the world of single-event betting. However, their frameworks remain less expansive and more conservatively regulated than Ontario’s open licensing system. 

At the same time, First Nations groups are increasingly advocating for a more substantial role in Canada’s evolving gaming laws. Under the current legal framework, provincial authorities must conduct and manage all gambling activities, restricting First Nations’ ability to independently operate gaming ventures. Bill S-268, currently under Senate review, aims to change this by granting First Nations the authority to regulate and manage lotteries and other gaming activities on their lands​.

If passed, the bill would allow First Nations to bypass provincial control and retain all profits generated by on-reserve gaming. This could open up new avenues for economic development while aligning with the broader national goals of reconciliation and Indigenous self-governance.

Summary

Canada’s evolving betting laws are profoundly reshaping the online gambling landscape. With Ontario at the forefront, the rest of the country follows suit, creating a more competitive, regulated, and economically vibrant gambling sector. While challenges remain, particularly around responsible gambling and Indigenous rights, the future of online betting in Canada appears bright and full of potential.