The Legal Landscape of Sports Betting in Canada

Edna Boykin
October 22, 2024

Since the legalization of online sports betting in Canada, the industry has experienced rapid growth. A major turning point came in 2021 with the passage of Bill C-218, which allowed single-game betting—a game-changer for Canadian sports bettors. Now, sports enthusiasts across the country, particularly in Ontario, can legally wager on their favorite teams.

In this article, we’ll explore the history of sports betting in Canada, how the laws have evolved over the years, and what challenges and opportunities lie ahead for those looking to enjoy a fun and potentially profitable betting experience.

Historical Background in Sports Betting in Canada

Did you know that Canada once had a total ban on betting and gambling? Back in 1892, all forms of wagering were outlawed—except for horse racing. That changed in 1969 when the government made room for lotteries under the Canadian Criminal Code, using the proceeds to support charities and other good causes.

Fast forward to 1985, and things really started to open up. The government relaxed restrictions, allowing regulated gambling options like slot machines and video lottery terminals. This shift eventually paved the way for sports betting laws in Canada to evolve, making room for more legalized betting options.

By 2005, many Canadian sports bettors were turning to UK sportsbooks and offshore bookies. Why? Because a loophole in the Canadian Criminal Code allowed them to place bets through these platforms without violating any laws.

A case study later revealed that Canadians were betting around $14 billion annually on sports—yet only about $500 million of that was going through government-regulated channels. With so much money flowing into unregulated markets, the demand for single-game betting platforms and updated sports betting laws in Canada became impossible to ignore.

Passage of Bill C-218 and its Impact

Back in 2021, Canadian sports betting laws took a major leap forward with the introduction of Bill C-218, also known as the Safe and Regulated Sports Betting Act. This bill officially legalized single-game sports betting, meaning that for the first time, Canadians could legally place bets on individual events through platforms like Proline or other authorized sportsbooks.

To make sure everything ran smoothly, the Alcohol and Gaming Commission of Ontario (AGCO) stepped in to regulate the amendment and help establish a legal framework for sports betting platforms in Ontario. Thanks to their efforts, Ontario launched its first legal sports betting market in 2022, attracting a surge of new bookmakers and bettors.

Since then, the industry has taken off, with more players signing up and Ontario proving itself as one of the most promising betting markets in the country. If this trend continues, it wouldn’t be surprising to see more provinces following suit and expanding their own sports betting markets.

Legalization of Single-Event Sports Betting

For many years, sports bettors in Canada were restricted to placing only parlay bets, which required them to guess the results of multiple events correctly. However, a key milestone took place with the legalization of single-game sports betting.

The Safe and Regulated Sports Betting Act, or Bill C-218, legalized this after it was passed in 2021, and it empowered provinces to regulate their individual sports betting frameworks.

This groundbreaking development created many opportunities for sports betting sites in Canada to operate in a decentralized way and for betting enthusiasts to join various platforms of this ever-growing and dynamic industry.

Current Legal Status of Sports Betting by Province

While sports betting is legal in Canada, there are major limitations depending on which province you are betting from. Every province in Canada has a different regulatory framework and legalized platforms for online sports betting.

The following Canadian provinces have the authority to regulate sports betting through the following regulatory bodies –

British Columbia - British Columbia Lottery Corporation
Alberta - Alberta Gaming, Liquor, and Cannabis
Saskatchewan - Saskatchewan Indian Gaming Authority
Manitoba - Manitoba Liquor & Lotteries
Ontario - Alcohol and Gaming Corporation of Ontario
Québec -Loto-Québec
Newfoundland and Labrador - Atlantic Lottery Corporation
Nova Scotia - Atlantic Lottery Corporation
Prince Edward Island - Atlantic Lottery Corporation
New Brunswick - Atlantic Lottery Corporation
Yukon - Lotteries Yukon
Northwest Territories - WCLC
Nunavut - WCLC

Challenges and Future Considerations

While Canada has opened up doors to many opportunities for sports bettors, the industry still faces constant challenges. Regulatory inconsistencies that exist between provinces have created compliance complexities and market fragmentation, potentially straining small sportsbook operators.

So, there are issues that need to be addressed to maintain a sustainable and balanced sports betting ecosystem. Even with these challenges, technological advancements are continuously fueling the Canadian betting sector.

There are ongoing innovations, including the introduction of mobile betting apps, blockchain technology, virtual reality, and augmented reality, that have considerably led the industry to gain traction and deliver more engaging experiences. Among these, the rise of cryptocurrency sports betting in Canada has added a new dimension to how players interact with the platform.

Conclusion

Canada’s sports betting landscape is evolving rapidly, driven by the intersection of technological advancements and regulatory changes. Staying informed about these developments is crucial for players looking to navigate the industry effectively.

The recent regulatory shifts in Ontario and other provinces highlight the importance of balancing market expansion with responsible gambling practices. These changes serve as a valuable lesson for bettors and regulators alike.

Addressing regulatory inconsistencies will be key to ensuring a thriving and sustainable gambling ecosystem in Canada. At the same time, the industry’s future growth will continue to shape the way sports betting operates nationwide.

FAQs

Are All Types of Sports Betting Legal in Canada?

Yes, sports betting recently became legal in Canada with the legalization of single-game events that blew up the industry, allowing players to engage with wagering at their favorite sports events.

Is Online Sports Betting Available in All Canadian Provinces?

While Canada has made sports betting legal, it is heavily regulated in many provinces. This means every province has its rules and regulations that govern sports betting within their jurisdictions.

Will the Legal Landscape of Sports Betting in Canada Continue to Evolve?

With the success of sports betting in Ontario, the industry continues to grow in other provinces in Canada, making it a bright future for the country’s legal landscape.