Online gambling in Canada operates within a unique regulatory framework. The control is decentralized, giving significant authority to the provinces. This approach has led to varied rules and systems across the country. While some regions embrace private operators, others rely solely on government-run platforms. These differences significantly influence how Canadians experience online gambling.
Federal Roles vs. Provincial Autonomy
Gambling in Canada is federally governed, but provinces control regulation. This allows more control to each province, and also allows players more freedom: For example, which games are trending in Canada and gain traction might differ depending on which online casino players use. The federal government sets legal frameworks, like decriminalising single-event sports betting in 2021. Provinces decide how to apply these rules.
Ontario leads with private operators via iGaming Ontario (iGO), hosting over 70 licensed platforms. In contrast, British Columbia sticks to government-run PlayNow, while Alberta is slowly shifting, introducing laws like the iGaming Alberta Act but remaining mostly government-focused.
This creates a mixed system. Some provinces offer numerous private options, while others stick to single government platforms. These differences influence consumer protection, fairness, and revenue, reflecting each province’s priorities.
Economic Impact of Online Gambling
Online gambling generates substantial revenue for provinces, offering a tax-free way to fund public services. Ontario, for example, has earned hundreds of millions since launching its iGaming market in 2022, thanks to a competitive licensing model that draws private operators.
Provinces like British Columbia and Alberta depend on their platforms to support healthcare, education, and infrastructure. Even smaller regions, such as Manitoba, are exploring better-regulated options to increase income.
Regulated markets also create jobs, from IT and customer service to marketing and financial services. While it may not match resource industries, its economic impact is growing rapidly.
However, poor regulation risks losing funds to grey markets, reducing public spending and leaving consumers unprotected. A responsible system keeps money in Canada and safeguards players.
Ontario and Alberta: Embracing Private Sector Models
Some provinces in Canada are shifting strategies to regulate online gambling by introducing private sector integration. Ontario and Alberta are two standout examples, each taking different approaches that could shape the future of iGaming in the country.
Ontario’s Regulated Market Success
Ontario’s regulated online gambling market launched in April 2022 and has quickly grown, reducing grey market activity and generating significant revenue. With support from the Alcohol and Gaming Commission of Ontario and iGaming Ontario, 86.4% of online gambling now occurs on licensed platforms, providing government oversight and funding.
In the 2023-2024 fiscal year, players wagered $63.3 billion, creating $2.2 billion in revenue. Projections for 2025-2026 estimate revenue exceeding $2.6 billion. The province also committed $12.54 million to responsible gambling programmes through the Responsible Internet Gambling Fund.
Over 50 operators manage 83 gaming sites, driving innovation, compliance, and job creation, making iGaming a key part of Ontario’s economy.
Alberta’s iGaming Act and Future Plans
Alberta plans to modernise its online gambling rules with the iGaming Alberta Act, set for 2025. Inspired by Ontario’s model but tailored for Alberta, the key change is creating the Alberta iGaming Corporation. This Crown corporation will oversee the market under the AGLC, handling licensing, compliance, and consumer protections.
The Act allows unlimited iGaming suppliers, encouraging competition and more player options. A major goal is shifting users away from unregulated offshore websites, keeping revenues within Alberta for public services.
Consumer safety is a priority, with measures like self-exclusion tools, responsible gambling rules, and strict advertising limits. Launch is expected by late 2025 or early 2026.
Critics, including casinos and charities, worry online platforms may hurt their earnings. Supporters argue a competitive market will benefit players and stem revenue loss to offshore sites.
Alberta’s changes could rival Ontario’s success, moving away from a government-controlled system to a competitive, transparent online gambling market.
Lottery-Based Approaches in Other Provinces
PlayNow, a service by the British Columbia Lottery Corporation (BCLC), is the official online gambling platform in British Columbia and Manitoba. It has lottery games, poker, bingo, slots next to single-event sports betting available. Because it is the sole legal choice in these areas, a careful watch exists over its actions. This covers its advertising, responsible gaming measures and the release of payouts.
In contrast to private groups, PlayNow gives money to local healthcare, education as well as infrastructure. Some argue it has a hard time competing with private and offshore places because it has odds that are not good, fewer games next to old features. In spite of such concerns, the platform has an important task in limiting unregulated gambling.
Manitoba’s version of PlayNow follows the same structure and is managed by Manitoba Liquor & Lotteries. As more provinces explore similar platforms, they reinforce a commitment to controlled, accountable online play.
Manitoba’s Legal Actions Against Offshore Operators
Manitoba is cracking down on unregulated online gambling, targeting operators like the offshore site Bodog. The Liquor & Lotteries Commission, working with the Canadian Lottery Coalition, has started legal action to block these platforms. Offshore sites pull revenue from Manitoba’s regulated system, PlayNow, and raise concerns about fairness, accountability, and money laundering.
Offshore brands have been criticised for misleading ads aimed at Manitobans. The province’s legal action seeks to define lawful gambling operations and ensure revenue stays local to fund community services.
Money laundering is a major concern. Casinos in Manitoba, both physical and online, must report suspicious transactions. Offshore sites are suspected of aiding criminal activities, including drug sales. Authorities are working with FINTRAC and law enforcement to counter these risks.
Although Manitoba’s PlayNow platform offers fewer options than Ontario’s private-operator model, the province prioritises a government-regulated system that protects players and supports communities.
Challenges and the Future of Canadian Online Gambling Regulation
Provinces are tackling unregulated gambling sites, known as grey market operators, which avoid taxes and bypass consumer protection rules. These sites can expose players to risks like unfair practices and poor data security, while draining provincial revenue.
Ontario leads efforts against grey market gambling. Since launching its regulated iGaming market in 2022, most players now use licensed platforms. This success comes from strict rules and strong enforcement. Operators must meet tough standards, including Anti-Money Laundering (AML) and Know Your Customer (KYC) requirements, making legal options safer and more appealing.
Manitoba is taking legal action against offshore sites, such as Bodog, and working with agencies like FINTRAC to mitigate risks. However, enforcing rules on foreign operators is tricky due to overlapping jurisdictions.
British Columbia promotes its government-run platform, PlayNow, to attract local gamblers. While somewhat effective, critics say it lacks the variety of international sites, which can drive players back to the grey market. A broader, unified strategy might be needed to address this long-term.
Potential for a Unified National Framework
Canada’s gambling future hinges on a key question: stick with provincial regulation or adopt a national framework? Currently, rules vary by province, ensuring local control but creating inefficiencies for operators and confusion for players.
A national system could standardise licensing, taxes and responsible gambling rules, improving oversight and attracting international operators. Interprovincial agreements could become common, boosting cooperation and shared revenues.
However, provinces rely heavily on gambling revenue for public services like healthcare and education. Many would resist losing control, especially successful regions like Ontario, which benefit from tailored strategies. Federal law also complicates change, as gambling is tightly regulated under the Criminal Code, requiring significant legal reform for a unified model.
A national framework remains unlikely for now, with provinces focused on tweaking individual systems. But as online gambling grows, balancing provincial independence with federal guidance may become harder to ignore.
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