Regulation
How the Criminal Code and provincial lottery schemes define legal gambling in Canada — plus where offshore casinos and First Nations gaming rights fit in.
Canadian gambling law rests on a dual framework: the federal Criminal Code sets criminal boundaries, while provinces conduct and manage permitted 'lottery schemes' through Crown corporations and regulators. This guide explains the legal concepts — gaming, betting, lottery schemes, private bets, and offshore access — that underpin what players see in Ontario's open market, BC's PlayNow monopoly, and the grey-zone international sites used across the country.
In Canada, gambling — often called gaming in legal contexts — is governed by a dual framework of federal criminal law and provincial regulation. The federal Criminal Code prohibits most gambling activities by default, but provides explicit exceptions, primarily in Section 207, which allow provinces to conduct and manage lottery schemes — a term encompassing most forms of gambling, including casinos, lotteries, and online gaming.
The federal government sets the criminal boundaries; provinces regulate and authorise permitted gambling within their jurisdictions through registration or licensure systems.
The primary exceptions fall into two categories:
Because Category Two eligibility is restrictive, most gambling is conducted under Category One — provincial Crown corporations, often contracting daily operations to private companies.
Gambling is therefore generally illegal unless authorised by provincial authority or another specific Criminal Code exception. Provinces use Section 207 to form Crown corporations, establish regulators, and ensure compliance with both federal and provincial laws. This reflects Canada's constitutional division: Parliament broadly criminalises gambling but allows provinces to regulate specified forms in line with local norms — producing distinct regional gambling laws.
Provincial approaches vary. Some provinces directly conduct and manage gaming through Crown corporations; others outsource operations to private service providers. Scope includes casinos, integrated resorts, racetracks, lotteries, and online platforms offering sports betting and casino games.
Historically, Canadian gambling laws were restrictive. That stance has gradually relaxed under provincial oversight. In 2022, Ontario opened its online gambling market to private operators. Alberta introduced similar legislation through the iGaming Alberta Act and opened its competitive online market in July 2026.
For a player-focused breakdown of what's legal in each province today, see our licensing & regulation guide.
Canadian law distinguishes between betting, gaming, and lotteries — each involving the chance of winning or losing money or property. While gambling lacks a single express definition in statute, it is often synonymous with gaming and includes betting, though the Criminal Code treats these as distinct activities.
Gaming is defined by case law as playing a game for stakes, where participants wager money or property and stand to win or lose based on the outcome. The Criminal Code describes a game as one of chance or mixed chance and skill.
Unlike some jurisdictions, inserting a skilled component does not necessarily insulate an activity from Criminal Code gaming provisions. Gaming covers casino-style activities — card games, roulette, slot machines, bingo — where outcomes are wagered upon. Even amusement guessing games can fit this definition.
A bet is a contract between parties based on mutual promises to pay a specific sum contingent on an uncertain event's outcome — including horse races, fights, matches, or sporting events. A wager is synonymous with a bet.
Paying an entry fee for a contest does not constitute a bet if the player has no chance of winning a prize greater than the entry fee.
Legally, a lottery involves paying for a chance to win a prize, with winners determined by chance — such as a raffle or draw. It differs from a lottery scheme, which is broader. The Criminal Code prohibits unauthorised lotteries.
These distinctions overlap in practice. Sports betting may be structured as a lottery (pick winners of several games for a prize); roulette is akin to a lottery on a number. The Criminal Code uses lottery scheme as an umbrella term covering most gambling involving consideration, chance, and prize — including sports betting, bingo, and casino games. All lotteries are lottery schemes, but not all lottery schemes are lotteries.
The lottery scheme concept is central to Canadian gaming law. It delineates lawful gambling from illegal activity. Only provincial governments or eligible entities — licensed charities, for example — can conduct and manage lottery schemes legally.
If a gambling activity does not meet the lottery scheme definition, or is conducted by unauthorised persons, it is likely illegal unless it qualifies as a private bet or authorised pari-mutuel horse-race betting.
Provinces and charities rely on this definition to ensure their games fit within Section 207. For private gaming innovation, determining whether a new contest is an unauthorised lottery scheme is essential. Many promotional prize draws avoid the definition by eliminating payment and adding skill elements. Video games risk classification as lottery schemes if they include consideration, chance, and a prize.
In summary, lottery scheme is the legal boundary between criminal and permitted gambling — encompassing legal formats while excluding private bets and pari-mutuel horse racing.
Modern gambling and contest offerings do not always fit traditional Criminal Code categories. Whether an activity is an illegal gambling scheme depends on the presence of consideration, chance, and prize, and on whether any legal exception applies.
Fantasy sports is not defined in Canadian law but generally involves participants assembling imaginary teams of real players and competing based on statistical performance. Leagues with entry fees and prize money for the best-performing team have no explicit Criminal Code exemption. A for-profit, public fantasy league would likely constitute an unauthorised lottery scheme or betting pool unless conducted and managed by a provincial government or its agent.
Pool betting involves pooling wagers on specific outcomes, with winners sharing the pool minus an organiser's cut. Unauthorised pool-selling is illegal. Lawful forms exist: provincial governments or licensed entities may offer pool selling (except on horse races), and authorised racing associations may offer pari-mutuel betting on horse racing.
Informal pools among private individuals may be permissible if not for profit, but an organiser taking a fee would violate the Criminal Code.
Ontario has initiated a reference proceeding asking the Court of Appeal whether legal online gaming remains lawful if Ontario users participate in games and betting involving individuals outside Canada. A favourable decision could enable larger-scale poker tournaments and international betting pools within Ontario's iGaming regime.
Spread betting — wagers based on margins of victory or point spreads — is treated as a form of betting, not a separate category. Without provincial approval, spread betting is illegal bookmaking. Its similarity to financial betting complicates its status; spread betting on financial markets may invoke securities law. Unlicensed spread betting is prohibited; lawful offerings must be part of a provincial lottery scheme.
Games of skill are not considered "games" under the Criminal Code if they lack all internal elements of chance. Canada does not apply a predominance test. Even a slight internal chance component — card shuffling, dice throwing — transforms an otherwise skill-based activity into a game of mixed chance and skill, which is regulated.
A game is pure skill only if no internal chance is involved. External chance — weather affecting a golf shot — is irrelevant.
Adding a skill component to a game of chance places it outside Subsections 206(1)(a)–(d), which prohibit lotteries and chance games. Mixed-chance-and-skill or pure-skill activities are not offences under those subsections.
However, Section 206(1)(e) — primarily targeting pyramid schemes — is worded broadly enough to potentially capture games of pure skill. It has been decades since a pure-skill game was prosecuted under this section in a published case.
Promotional prize draws — contests or sweepstakes used by businesses to promote products — must navigate several legal frameworks:
Criminal Code (Section 206): Illegal lotteries and games of chance or mixed chance and skill are prohibited when participants pay to enter. Organisers typically provide a free-entry alternative to eliminate the payment requirement. The free-entry method must be clearly disclosed, readily accessible, and not unduly burdensome. Free entrants must have equal odds and participate in the same prize pools.
To avoid Subsections 206(1)(a)–(d), organisers add a skill component — typically a skill-testing question. The question must be sufficiently challenging; common practice uses a four-part maths question answered without assistance under time constraints.
Competition Act: Requires adequate and fair disclosure of prize values, odds, and contest rules; prohibits misleading advertising. Rules must be available without purchase.
Provincial laws: Additional requirements apply — for example, Québec's French-language rules and restrictions on marketing to children.
Privacy, anti-spam, and IP laws: Personal information collection (PIPEDA and provincial privacy laws), CASL for electronic messages, and intellectual property rules for third-party content and social media platform terms.
By default, gambling enterprises and related activities are illegal unless a specific Criminal Code exception applies. Key prohibitions include:
Running an unlicensed casino or illegal bookmaker falls under these definitions and attracts criminal penalties.
Despite these prohibitions, Criminal Code exceptions have enabled a regulated, for-profit gambling industry:
| Channel | Who May Operate | Key Conditions |
|---|---|---|
| Provincial lotteries & casinos | Provincial governments via Crown corporations (OLG, BCLC, Loto-Québec, etc.) | Must be 'conducted and managed' by the province; may partner with private operators for day-to-day operations |
| Private online iGaming (Ontario, Alberta) | AGCO/iGO-licensed or AGLC-licensed private operators | Province retains conduct-and-manage responsibility; operators register under provincial oversight |
| Charitable & religious gaming | Licensed charities and religious organisations | Provincial licence required; proceeds must benefit charitable purposes |
| Pari-mutuel horse racing | Permitted racing associations with CPMA permits | Federally regulated by the Canadian Pari-Mutuel Agency; provinces license participants |
| Private bets | Individuals not in the business of betting | Friendly wagers and non-profit office pools; organiser profit triggers prohibition |
| Fairs & exhibitions | Licensed boards or concession operators | Low-stakes lottery schemes during licensed events |
| Public places of amusement | Licensed seasonal resorts and amusement venues | Ticket price capped at C$2; total prize value not more than C$500 |
Additional lawful channels include making and printing gaming materials (Section 207(1)(h)), which allows Canadian companies to manufacture and export gaming materials for use where lawful — including foreign jurisdictions.
Provincial governments have exclusive authority to conduct and manage large-scale gambling within their borders. The federal government enforces Criminal Code restrictions and oversees pari-mutuel horse racing, while provinces regulate, operate, or delegate day-to-day legal gambling.
In summary: commercial gambling is illegal unless conducted and managed by provincial governments or their licensees under specific Criminal Code exceptions. Failure to comply can result in criminal liability.
Canada's gambling model is state-controlled: the Criminal Code prohibits nearly all gambling except lottery schemes conducted and managed by provincial governments. Each province operates a Crown lottery corporation — OLG, BCLC, Loto-Québec, and others — as the exclusive legal provider of gaming products, or relies on another province's corporation.
Private enterprises are generally prohibited from offering competing products and must sell to Crown corporations instead. The Criminal Code allows limited licences for charitable organisations, fairs, and low-stakes amusements.
Ontario's iGaming regime is the main exception: private operators offer online gambling under provincial oversight, but the province still conducts and manages the market through iGaming Ontario. Elsewhere, private sector roles are mostly limited to supplying or supporting Crown corporations — though in provinces like British Columbia, private operators may handle most day-to-day tasks and brand facilities with their logos while the province retains legal responsibility.
The federal government, via the Criminal Code, generally prohibits gambling and sets criminal boundaries. Section 207 provides the main exception for provincial lottery schemes. Pari-mutuel horse-race betting is federally regulated by the Canadian Pari-Mutuel Agency (CPMA), which issues permits and oversees betting systems, while provinces regulate participants and races.
Provinces are the main regulators and providers, each with its own framework — typically a Crown corporation and a regulatory agency such as the AGCO in Ontario or the GPEB in British Columbia. Provinces decide which gambling forms are allowed, the regulatory model, and the scope of online and land-based gaming. They may contract private operators but must retain enough control to meet the conduct and manage standard.
Charitable and religious gaming is provincially or municipally licensed, with strict rules on proceeds. Municipalities, subject to provincial law, may handle business licensing, zoning, and plebiscites on certain formats such as VLTs.
No national regime grants favoured status to tourist regions, but provinces may locate casinos in high-traffic areas for economic reasons.
Under the federal-provincial framework, First Nations need provincial authorisation to offer commercial gambling on or from their lands.
| Model | How It Works | Independence |
|---|---|---|
| Provincial charitable licence | First Nation applies like any other charitable organisation | Limited operational scope |
| Agent of Crown corporation | First Nation or its company operates under agreement with the province | Province retains conduct-and-manage responsibility; operator must register with provincial regulator |
| Provincial First Nation licensing body | Licence issued by an approved body such as the Saskatchewan Indian Gaming Authority (SIGA) | Operates within provincial framework with delegated authority |
The Supreme Court has ruled that Criminal Code gaming prohibitions apply to Indigenous communities unless a specific Aboriginal gaming right is recognised under Section 35(1) of the Constitution Act — which courts have not done for the gambling activities at issue.
In 1985 and 1987, Eagle Lake and Shawanaga First Nations authorised gaming on their reserves without provincial approval, claiming inherent rights. The Supreme Court upheld convictions, finding no Section 35(1) Aboriginal right because the gambling was not integral to their cultures at first European contact.
More recently, some First Nations have created gaming regulatory regimes with limited government challenge:
Canadian authorities have evolved from minimal intervention with offshore operators to a more proactive regulatory stance, driven by consumer protection, market integrity, and taxation concerns.
Ontario established iGaming Ontario (iGO) to regulate internet gaming. The AGCO warns that unregulated operators offering or advertising gambling to Ontario residents risk enforcement and permanent exclusion from the regulated market. In May 2025, the AGCO reported contacting at least a dozen Canadian media platforms, urging them to cease promoting unregulated sites to Ontario residents.
On 28 January 2025, the Canadian Lottery Coalition — through the Manitoba Liquor & Lotteries Corporation — obtained an injunction against offshore operator Bodog, prohibiting it from offering or advertising online gambling in Manitoba. This was a landmark decision; prior to it, there had been virtually no published enforcement orders against unauthorised offshore operators.
The Coalition — an alliance of provincial lottery and gaming corporations — addresses unregulated offshore gambling and lobbies for federal legislation to restrict operator activities.
Part VII of the Criminal Code prohibits all forms of gambling unless conducted and managed by a province or territory, or specifically exempted under Section 207. Operators offering iGaming to Ontario residents without AGCO registration, or to other Canadians without appropriate provincial registrations, theoretically violate these provisions.
However, some argue that unless an offshore operator has sufficient connecting factors to Canada — directly advertising to Canadians, accepting deposits in CAD — Canadian courts lack jurisdiction due to Section 6(2) of the Criminal Code. This argument remains legally untested for offshore iGaming. Courts have recognised an exception: if a significant portion of the activities constituting the offence occur in Canada, the offence is deemed to have occurred within Canada under the real and substantial link test.
Service providers — including payment service providers (PSPs) — can be criminally liable for aiding an offence if they knowingly serve unauthorised offshore gaming operators offering gambling to Canadians. This extends the enforcement risk beyond operators to the infrastructure supporting them.
This guide draws on legal analysis published by Lexology, particularly the Gambling Law: Canada in-depth guide and A general introduction to gambling law in Canada, adapted for a player-facing audience. It is informational only and does not constitute legal advice.
FAQ
Generally illegal unless authorised. The Criminal Code prohibits most gambling by default, but Section 207 allows provinces to conduct and manage lottery schemes — a term covering casinos, lotteries, sports betting, and online gaming. Private bets between individuals and pari-mutuel horse racing under federal permits are separate exceptions. If an activity is not covered by one of these exceptions, it is likely a criminal offence.
Legal FrameworkThe central legal concept defining permissible gambling. A lottery scheme typically involves consideration (payment), chance, and a prize — covering sports betting, bingo, slot machines, and casino games. Only provincial governments or eligible licensed entities (charities, fairs, etc.) may legally conduct and manage lottery schemes. Activities excluded from the definition under Section 207(4), such as unauthorised bookmaking, cannot be legalised by provinces.
DefinitionsNot automatically. Unlike some jurisdictions, Canada does not use a predominance test. If a game contains even a slight internal element of chance — card shuffling, dice, a random draw — it is treated as a game of mixed chance and skill and falls under Criminal Code gaming provisions. A game is pure skill only when no internal chance is involved; external chance (like weather affecting a golf shot) does not count.
DefinitionsOperators offering iGaming to Canadians without appropriate provincial registration theoretically violate Part VII of the Criminal Code. Individual players are not typically prosecuted, but these sites operate without provincial consumer protections. Enforcement against operators has intensified — Ontario's AGCO has pursued unlicensed advertisers, and Manitoba secured a 2025 court injunction against Bodog. Jurisdiction over operators with no Canadian presence remains legally contested.
OffshoreFirst Nations need provincial authorisation for commercial gambling on their lands unless a specific Aboriginal gaming right is recognised under Section 35 of the Constitution Act — which courts have not done for the gambling activities at issue. Three models exist: provincial charitable-style licences, operating as an agent of a provincial Crown corporation, or licensing through a provincially approved First Nation body (e.g., SIGA in Saskatchewan). Some communities, like Kahnawà:ke, have established their own gaming commissions with limited government challenge.
Indigenous GamingKeep Reading
Provincial licensing systems, AGCO oversight, and what Canadian players need to know in 2026.
Provincial helplines, self-exclusion programs, and safer play tools.
Participation rates, problem gambling prevalence, and provincial breakdowns.
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