Progress and challenges in Canada’s gambling framework

Garance Limouzy September 30, 2024

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Progress and challenges in Canada’s gambling framework

Over the years, Canada’s gambling laws have transitioned from a restrictive framework to a more regulated and open system, particularly concerning online gaming. The country’s gambling regulations vary significantly depending on the type of gaming, with provinces given considerable authority to manage these activities. Currently, online gaming is regulated in only one province.

In Canada, gambling is primarily regulated under the Criminal Code, which grants provinces the power to manage lottery schemes and gaming activities. Each province has established its own regulatory bodies that oversee online casino gaming, sports betting, and lotteries. For instance, online horse racing betting falls under federal jurisdiction and is managed by authorised private operators. While casinos are allowed, standalone cardrooms are prohibited, and commercial card games can only be conducted within regulated casinos.

The introduction of Bill C-218 in 2021 permitted single-event sports betting, opening the door for provinces to regulate and tax this lucrative market.

Ontario’s lead in online gaming

Ontario launched its regulated iGaming market in April 2022. The introduction of a comprehensive regulatory framework has allowed over 30 private companies, including major players like FanDuel and DraftKings, to operate legally. The regulation has proven successful, generating $2.4 billion in gaming revenue in the past year alone, as many bettors transitioned from unregulated platforms to legal, licensed options.

Other provinces looking to follow suit

Following Ontario’s example, Alberta is preparing to open its online gambling market to private operators. Currently, the only regulated online gambling platform in the province is Play Alberta, but many gamblers still rely on unregulated offshore sites. This law would transform the province’s grey market into a regulated sector capable of generating substantial tax revenue. The introduction of Bill 16 will facilitate private operators’ entry into the market, and the provincial government is actively consulting stakeholders to develop a robust framework that promotes safe and responsible gambling practices.

As Alberta makes strides toward opening its online market, other provinces are observing closely and considering similar expansions. British Columbia continues to operate its online gaming through a government monopoly, while the Atlantic provinces maintain tighter regulations compared to Ontario.

National initiatives to regulate gambling advertising

Amidst these developments, Canadian lawmakers are also grappling with the issue of gambling advertising. The Senate is currently reviewing Bill S-269, which seeks to establish a national framework for regulating sports-betting advertisements. This legislation, championed by Ontario Senator Marty Deacon, aims to impose restrictions on the number of ads and ban celebrity endorsements, mirroring existing rules in Ontario. Advocacy groups, broadcasters, and industry representatives have been vocal about their concerns, with some pushing for a total ban on gambling advertisements, while others caution against federal overreach into provincial regulatory practices.