Gambling has been enjoyed by people for thousands of years, but countries around the world have very different attitudes towards this pastime. If you’re interested in playing online casino games or poker or would like to take part in sports betting in Canada, it’s important that you understand the gambling laws and how they apply to you.
This comprehensive guide unpacks Canadian gambling laws so that you have a fun time gambling legally.
Canada’s Gambling Laws, Past and Present
In order to begin understanding gambling laws in Canada, it’s important to start with the Canadian Criminal Code. A bet was originally defined by the Criminal Code of 1892. as “a bet that is placed on any contingency or event that is to take place in or out of Canada, and without restricting the generality of the foregoing, includes a bet that is placed on any contingency relating to a horse race, fight, match or sporting event that is to take place in or out of Canada.”
However, there have been numerous amendments to this original law that affected how and when people could gamble.
The first of these was the amendment made to the Criminal Code in 1900 that allowed bingo and raffles as long as the earnings were for charitable causes.
The second notable amendment to the Criminal Code took place in 1910 and allowed for pari-mutuel betting on horse racing across all of Canada. Today, horse race betting is managed by the Canadian Pari-Mutuel Agency (CPMA). This organization ensures races are fair by overseeing all pari-mutuel-related activities, including auditing and monitoring betting, enforcing regulations, and testing horses for prohibited substances.
As much as it seemed that the Canadian national government was leaning toward opening up the gambling industry, a 1922 amendment of the Criminal Code made it illegal to bet on dice games, shell games, punchboards, coin tables, or wheels of fortune.
The next major amendment that loosened the national government’s grip was the Criminal Code amendment of 1925. This code allowed fairs to host specific gambling games.
While there were various minor amendments after 1925, these didn’t have a major impact on the state of legal gambling in Canada until 1969, when an amendment was made to the Criminal Code that allowed federal and provincial governments to operate lotteries and also expanded what was considered charitable gambling. According to the report “Gambling and Crime in Western Canada: Exploring Myth and Reality” by Drs. Garry Smith and Harold Wynne, this amendment was a result of lobbying by Quebec politicians who needed public funding for two major events: the Montreal Expo 67 and the 1976 Summer Olympics. This was considered a major step forward for legalized gambling in Canada.
The next major change to the Criminal Code came in 1985. This amendment essentially gave provincial governments full reign over the management of gambling in each province. This was seen as the last major hurdle to overcome and opened the door for many legal gambling operations, including casinos, in the country. Smith and Wynne mention in their report that:
“This change paved the way for provinces to offer video lottery terminal and slot machine gambling, which has added billions of dollars to provincial government coffers in less than a decade (Azmier and Smith, 1998).”
This change undoubtedly made it easier for Canadians to enjoy gambling safely and legally; however, laws and regulations still exist that prohibit online gambling. But is online gambling legal in Canada? Only Ontario has taken the steps to legalize online gambling, while other Canadians must make use of internationally licensed online gambling platforms. This, unfortunately, means that online gambling in Canada still has a long way to go compared to other countries that have legalized the pastime.
Who Regulates Gambling in Canada?
Gambling is managed by various organizations that represent each provincial government. If no provincial regulation exists, many gambling acts are still considered illegal under national laws.
The Legal Age To Gamble in Canada
At a national level, the legal age for gambling in Canada is 19 or older. However, this can differ at the provincial level, with some provinces allowing people to gamble legally from the age of 18. According to the Yahoo! Finance article “Laws and Legislation on Gambling in Canada,” the provinces where you can gamble from the age of 18 are:
- Alberta
- Manitoba
- Quebec
The remaining seven provinces follow the national law and only allow people aged 19 and up to participate in gambling. These provinces are:
- British Columbia
- New Brunswick
- Newfoundland and Labrador
- Northwest Territories
- Nova Scotia
- Saskatchewan
- Yukon
Are Gambling Winnings Taxed in Canada?
Unfortunately, the answer to the question “Are gambling winnings taxed in Canada?” isn’t straightforward. The answer to this question is usually answered by asking another question first. That question is, are you a professional gambler, or are you an amateur gambler?
A professional gambler is someone who expects to earn a living from gambling, which means that their winnings are considered income and are, therefore, taxable. An amateur gambler is someone who gambles for fun and doesn’t expect to earn a living from gambling, which means their winnings are considered windfalls and are, therefore, not taxable.
However, the answer gets even more complicated as what is considered income and what is considered windfalls differs from game to game. The winnings from games that have an element of skill are considered income and are, therefore, taxable. The winnings from games of pure chance are considered windfalls, so they are taxable.
Ultimately, you should speak to a lawyer to confirm whether or not your gambling habits would be considered taxable or not.