Online gambling is often called a ‘legal grey area’ and this phrase is also well known in Canada. This activity falls under provincial jurisdiction and is strictly controlled by Canadian law. This is probably why online gambling has gained popularity over time but hasn’t seen huge profits and growth over the last few years. The legal status of online gambling in Canada is a tough one considering there is a myriad of factors which suggest that the online gambling laws in Canada are not conclusive. The Canadian gambling laws are easily circumvented by people, casinos (brick and mortar), and online casinos because they are not as defined as in other countries.
There aren’t any laws on the books in Canada that specifically reference the legality of online gambling, making the question of whether online casinos are legal in Canada or not difficult to answer. A lack of laws on the subject mean that older gambling laws are sometimes applied to the more modern online gambling market. According to Canadian law, it is only legal to gamble at places approved by the Canadian government. By the strict letter of the law, that means that you can only legally play at online casinos endorsed by the Canadian government. There are a few provincial casinos available to Canadian citizens, in British Columbia and Quebec, with many more provinces planning to open their own sites in the next few years. Are these the only legal online casinos in Canada?
The Canadian government isn’t yet interested enough in online gambling to take action. No Canadian has ever been prosecuted for playing at an online casino. In fact, in the United States, where online gambling law is far stricter, only a handful of cases were ever brought for breaking state online gambling laws, and those people were asked to pay small fines or not punished at all. Like in Canada, the US government is more interested in preventing online gambling by putting pressure on banks and financial institutions to stop processing transactions to gambling sites. So far, individuals are not the target of any action of the Canadian government against online gambling
Top Ranked Online Casinos in Canada for 2020
The Future of Canadian Online Casinos
It’s unlikely that the Canadian government will all of a sudden decide to prosecute people who play at online casinos. The future of Canadian online casino and online gambling seems to be with provincial-run online gambling sites. The success of provincially-regulated online poker and online casino gambling in some provinces (and the increased tax revenue they provide) means more provincial governments will pursue opening government-sanctioned gambling sites in the future.
Like in the United States, Canadian casinos licensed and regulated by the government will make up the majority of new Canadian casino action for the next few years. The Canadian government isn’t likely to make online gambling explicitly legal nationwide, and like the US government will probably leave it up to regional governments to decide the status of online gambling within their borders.
The Canadian online casino situation will closely mirror what happens in the USA. If gambling laws in the USA get stricter, so will laws in Canada. If US players lose access to more online payment transfer methods, so will Canadians. If you want to know what’s next in Canadian online gambling, look to what’s happening in online gambling law in America.
Online Casinos and the Canadian Dollar
Most online casinos don’t do business using the Canadian dollar, but that doesn’t mean that Canadians will have to convert their currency to play at online casino sites. There are some casinos that do business in the Canadian dollar, you just have to do a little digging around to find them.
When you do find an online gambling site that accept deposits and pays withdrawals in the Canadian dollar, you have to do a little more research to find out how you’ll transfer money to your online casino cashier account. Some Canadian banks have started declining transactions between Canadian citizens and online gambling sites, and some credit card companies (VISA for sure, MasterCard in some cases) don’t allow their customers to use their cards to fund online gambling accounts.
Canadians who want to gamble online should find an eWallet service they like and set up an account (please note – you will not be able to deposit to a casino with PayPal.). If you find a payment transfer service or eWallet that accepts Canadian customers and has terms to your liking, using it to fund your online gambling account is much easier than trying to force your credit card transaction through. Many of these services allow Canadian customers and allow you to do business using the Canadian dollar.
How to Choose a Canadian Online Casino
Canadians looking for an online casino gambling site should consider a few things. First of all, look for online casinos that allow Canadian customers. Some sites, weary of troubles in the USA, closed their doors to all North Americans, Canadians included. Your second concern should be whether or not the site is doing legitimate business. Look for their licensing information, read online reviews, and choose an online gaming site that you trust.
While you’re at it, make sure your casino of choice does business in the Canadian dollar, otherwise you’ll have to pay extra fees and it may take longer to deposit and withdraw funds from your player account. Finally, check to see if you have an acceptable way of adding those funds. That means looking for a Canadian-friendly eWallet or other payment transfer service that you have access to. Remember that some Canadian banks and credit card companies are declining transactions to online casinos.
Canada online casino gamblers are going to face tough times as long as USA casino law keeps some online casino groups out of the North American market. Thankfully, provincial governments are considering opening their own online casino sites, and the legal situation in the USA seems to be improving, too. For now, doing a little homework before you choose a Canadian online casino is all it takes to make sure you’re obeying the law and playing at the best available Canadian online casinos.
The Criminal Code of Canada makes it illegal to gamble or conduct any gambling activities within Canada unless they fall within exceptions set out in the Criminal Code.
The Criminal Code of 1892/1910
First enacted in 1892, the Criminal Code has undergone many changes over the years to tolerate gambling under certain conditions. A 1910 amendment permitted pari-mutuel betting, which is a form of gambling in which winners get paid from a pool after the authorities take their cut first. The 1910 amendment allowed occasional games of chance provided that all profits were used for charitable or religious purposes and, also, games at agricultural fairs and exhibitions.
The Canadian Government Law
The Canadian government made betting-related changes to the Criminal Code in 1970, expanding the exceptions and leading to the creation of a multi-billion dollar gambling industry in Canada. For example, Canada’s first commercial casino opened in Winnipeg in 1989 and now they are such facilities in most of the country’s provinces. A large number of local governments are operating what are known as video lottery terminals, which, instead of vending coins to winners, pay out in coupons that are redeemable for cash. Also, many local governments are running profitable lotteries.
Sports Betting Laws (parlays)
One of the quirks of the Criminal Code is that it stipulates that it is against the law to bet on a single sport event or athletic contest. Authorized betting operators only permit sports punters to bet on the outcome of multiple matches in, say, the National Hockey League. This bet is called a parlay. Consequently, hundreds of thousands of Canadian gamblers bet online with bookmakers not licensed in their country, which is illegal.
There are moves afoot to amend the Criminal Code once again to enable Canadian sports punters to bet on single events legally, at least with Canada-based organizations, thanks to the work of Bob Runciman and his colleagues.
Gambling Definition Law
Recently Senator Runciman, an ex-provincial Leader of the Opposition in the Ontario Legislature and a Conservative Party member of the Canadian Senate since 2010, moved the third reading of Bill C-290 that aims to change the Criminal Code in relation to sports betting and, in doing so, gave an impassioned plea for his Senate colleagues to pass something that made it through the House of Commons unanimously.
Quotes ‘pro’ sports betting
“Voting against this bill ignores the testimony of those who treat problem gamblers. Voting against this bill ignores the submissions of those with experience enforcing the laws against illegal gambling. Voting against this bill plays to what I consider the baseless claims of the professional sports leagues. Voting against this bill ignores the reality of sports betting today, a reality that has been played out in the headlines of this city in recent weeks with the arrest of 21 area people charged with bookmaking in connection with a multi-million-dollar, Internet-based sports betting operation,” said Senator Runciman.
“Make no mistake: if you vote against this bill, you are not voting to put a stop to single-event sports gambling, but you are voting to ensure it remains in the shadows, with the money going offshore and to organized crime.
“What else did the experts who testified before Senate Committee tell us? Well, they agreed that the incidence of problem gambling has stabilised at around one per cent of the population in recent years, despite a vast increase in gambling opportunities. Legalized single-event sports betting is unlikely to move those numbers.
“In fact, problem gambling is more likely in the illegal environment, where responsible gambling measures are not in place, a fact confirmed by Doctor Kelly when he told us about two studies his organisation did in 2001 and 2005.
“I do not want to minimise the problems caused by gambling in our society but I do want to ensure things are kept in perspective. The dire social consequences predicted by opponents of this bill are not supported by the facts.
Canadian Gambling
“Also, we received submissions from the NFL, the NHL and the NBA. These leagues provided strongly worded briefs, all apparently written by the same person, that suggest legalised betting is destructive to the social fabric, a threat to the integrity of sports and damaging to the bonds of trust between sporting organisations and their fans.
“This is from Major League Baseball, which looked the other way as steroid-fuelled players rewrote the record book ‚Äî the same Major League Baseball where the all-time hits leader, Pete Rose, has admitted he bet on 52 games of his own team in a single season. This is from the NHL, which allowed a convicted bookie, Rick Tocchet, to become head coach of the Tampa Bay Lightning. This is the same NHL that allowed the Edmonton Oilers to sign an advertising agreement with Bodog, a gambling website, which included rink board advertising, concourse and other signage and radio spots. This is the same NHL that promotes the PRO-LINE Dash for Cash between periods of Ottawa Senators games. This is from the National Football League that plays games in London, England, a country that has had single-event sports betting for many years. It seems to me, honourable senators, that these leagues are doing a pretty good job of threatening the integrity of sports all by themselves.
“What we have in North America are sports leagues that believe that if they pretend gambling does not exist they do not need to worry about it. Let us get real here. Why do they think newspapers print the point spreads for games?
“I will conclude by addressing the moral argument and the belief that we should not encourage an activity such as gambling. There is an argument that we do not legalize drugs and prostitution simply because people want to engage in these activities, so why should we legalize gambling? Honourable senators, that is a false analogy. Gambling is already legal. In fact, sports betting is already legal.
Online Gambling Laws By State
“There is no moral distinction between betting on multiple games, known as a parlay, which is now legal, and betting on a single game. The only difference is that most sports fans know that parlay betting is for suckers because you have very little chance of winning and that is the reason people are attracted to single-event sports betting and why they will continue to engage in it, whether or not this chamber passes this legislation. The reality is that we cannot shut down the Internet. They have tried that in the United States with the Unlawful Internet Gambling Enforcement Act. The money seized under that act is a pittance compared to what is being gambled online by Americans. It is suggested it is over $1 billion a day according to some estimates.”
Conclusion:
Strictly speaking, the Criminal Code makes it an offense for Canadians to bet with gambling organizations not licensed in Canada. It would seem that the Canadian governments are not bothered about enforcing the law as it stands, although that may change if the C-290 passes bill and one of the main excuses for betting overseas becomes a thing of the past.
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