Legal guide to gambling in Canada

Gaming is a huge hit in Canada, so big that it's the country’s biggest source of entertainment. It’s an industry that is worth billions, with the most common form of gambling being lotteries and instant-win games. Traditional land-based gambling is more popular in Canada than online gambling, with the first commercial land-based casino opening in 1989, in Winnipeg. The type of gambling players can engage in depends solely on where they are located within Canada.

History of Gambling in Canada

Canada consists of 10 provinces and 3 territories, and the provincial and territorial governments have complete control of all gambling operations that take place in Canada. They work within the scope of what the Criminal Code allows.

The history of gambling in Canada has its roots in the Canadian Criminal Code. In 1982 the Code banned all gaming activities aside from horse racing. However, this ban has slowly been lifted over the years. Gambling on a small scale for the benefit of charities was legalized, and then in 1892, Canadians were permitted to place bets on horse races and gamble at fairs. In 1969, the Criminal Code was amended, enabling the government to use lotteries to fund activities like the Olympics. This led to a variety of gambling offerings being introduced over the years.

In 1985, computer and video gaming devices like slot machines were permitted following an additional amendment to the code. Provincial governments were given complete control of the regulation of all gambling activities.

Online Gambling in Canada

Online gambling in Canada sits in a relatively grey area. In the 1960’s, the government permitted provinces to determine their own laws governing gambling – however, this was mostly focused on traditional forms of gambling. According to the Criminal Code, it is not illegal to engage in online gambling activities. In addition, no one has ever been charged for engaging in online gambling activities within Canada. Unlike the U.S., who do not allows operators to run online casinos within the U.S., Canadian operators are permitted to provide online gambling services to its public. As stated above, the specific rules and regulations are determined by each province.

Gambling winnings are not taxed (unless it is ‘business-oriented’), which means that all winnings obtained by playing at an online casino for fun in Canada is tax-free.

In order to ensure that casinos operate in a fair manner there are regulatory bodies in place. Each province in Canada has regulations which the gaming operators need to abide by. The Kahnawake Gaming Commission operates in Canada and serves to regulate the casino sites, as well as many other casino sites around the world.

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