Legal Canadian casinos: myth or reality?
Canada is known for its tolerant attitude to many issues, including in the gambling business. Casinos in Canada have been legalized since 1999. Yoju online casinos are legal too in Canada. Around this time, the government passed legislation and created the Kahnawake Gaming Commission, as well as gambling commissions in the provinces.
The Canadian Gaming Association has published data showing that the average gambling income is $10-15 billion. Given the fact that Canada has a little over 38 million people, this amount is considered quite high. It is also worth mentioning the lack of unified state legislation for the gambling business.
In Canada, the same billing system as in the United States operates – the federal government approves the basic decisions, which then the regional authorities use to create their own bills.
In Canada, this foundation is articles of the Criminal Code No. 204, 206, and 207.
- article No. 204 regulates the organization of horse races and betting on them;
- article No. 206 contains a list of prohibited gambling and related activities;
- article No. 207 describes the permitted types of gambling and related activities.
After the regulation of the gambling sector depends on the decision of the authorities of the regions, of which there are 13 provinces in Canada. Each province has its own gambling laws. Somewhere there is a difference in the allowable age, and sometimes in the gambling entertainment itself, for example, somewhere only lotteries are legal, and somewhere land-based casinos and bookmakers work quite comfortably.
Online gambling status
There is no outright ban on betting at online casinos in Canada, although it is legal in some regions. The online vertical is regulated by the articles of the Criminal Code of Canada, which always remains unchanged. Legally, only 10 provinces have the final say on gambling legality.
There is no prohibition against playing online games under the code. Only servicing gamers who are underage will result in punishment. The law only fines the business’s owners, though, at the same time. Online casinos currently exist in a liminal space. While some provinces legalize private lotteries, others permit internet lotteries and gambling. Even though there haven’t been any reports of anyone being imprisoned or penalized for engaging in online gambling, the other games are not considered to be legitimate. Canadian players can make payments through third-party services and websites thanks to international operators, enabling hassle-free gaming at both physical and virtual casinos.
Gaming Business Licensing
Depending on the nature of gambling, you may need one or more licenses to operate an online casino. They are categorized as follows:
- first-class license for internet casinos, slot machines, or lotteries;
- Sweepstakes and internet betting are covered by a second-class license, while online bingo and poker are covered by a third-class license.
- If the business sells software for internet casinos, it needs a fourth-class license.
It is important to keep in mind that the provincial authorities still have the last say, and some aspects could alter.
The Kahnawake offshore zone in the province of Quebec offers favorable conditions for registering a gambling business. However, this area has high requirements for operators, transparency in financial reporting, and reputation.
A license for an online casino costs $40,000 to purchase. Customs duty and an additional $35,000 must be paid each year. Additionally, the provider is required to pay $15,000 in Kahnawake to test the online casino. Once the license expires, the operator must pay $100,000 to continue to be able to conduct business in this area. The license is good for one year.
The offshore zone is regulated by the Kahnawake Gaming Commission. It decides on the following types of licenses:
- Interactive Gambling License – gives the right to register hosting in Kahnawake.
- Client Provider Authorization – confirms the identity of the operator who wants to organize gaming services on the zone hosting. An authorized company has the rights to provide any gambling, online casino, bookmaker, or poker rooms.
- Inter-Jurisdictional Authorization – a secondary license that is issued to an operator if he has a license from another jurisdiction, but wants to work under the permission of Kahnawake.
- Key Persons License – for individuals who provide management services to the operator-holder of the Client Provider Authorization.
Recent legislative changes
The Ontario government pledged to enact legislation to end the monopoly of lottery operator Ontario Lottery & Gaming Corp. in 2020–2021. (OLG). The pandemic was the primary cause, for which the corporation was scheduled to pay $1.76 billion in the 2019–2020 fiscal year but just $200 million in the 2020–21 fiscal year. Since the provider’s answer has not yet been made public, it is unknown how much this monopolist was impacted.
A draft law on the legality of single bets, which are now prohibited by the Code, is also being considered. At the moment, only parlays from three events are allowed.
How to choose a Canadian casino to play?
Many players have problems choosing gambling platforms for playing on CAD. This is due to the huge variety of casinos. Here are some useful tips and nuances to pay attention to when choosing an institution:
- a valid license;
- a positive rating on trust sites Reddit, Trustpilot;
- high-quality licensed software from global providers;
- round-the-clock work of support specialists;
- protection of personal data using the SSL protocol;
- variety of game assortment;
- mobile casino;
- thoughtful bonus program.
According to statistics, about 60% of Canadians are involved in gambling. The legality of entertainment is regulated in each province. According to the established legislation, playing in a casino in the country is prohibited, but the operators were able to find a loophole in the legislation.