An Overview of the Current Status of the iGaming Industry in Canada

An Overview of the Current Status of the iGaming Industry in Canada

Wherever you are in Canada, there is an online casino or iGaming experience ready for you. Canada has some of the most sophisticated online gaming opportunities available anywhere in the world. As Canadians are such lovers of playing casino games, it is hardly surprising that they demand the best in this form of entertainment. 

They have a vast array of opportunities available that they can access from smartphones or desktop machines. Canadians can access their favourite gambling games from anywhere, provided they have a compatible device, internet access, and a valid payment method. With over 87% of Canadians now using smartphones, there is no doubt that entertainment for most people is always easily within reach.

In fact, the question for many Canadians is not whether they can play online casino games but where they can play the best online casino games and even enjoy the best casinos bonuses in Canada. There are so many options that many people look for a curated review service to help them find the crème de la crème of casino games. Canadian online casinos come in every shape and size, with games to suit everyone. While online slots remain the perennial favourite, online poker is a huge draw, and live dealer games are delivering a whole new experience for players looking for something totally different. 

The Status Quo

While gambling is regulated at a provincial level, the top line about iGaming can be summarised as follows:

  • Online gambling is legal across Canada, with each province having its own regulatory body. In Ontario, this is the Alcohol and Gaming Commission of Ontario (AGCO) or the British Columbia Lottery Corporation Board. These bodies oversee online and land-based gambling operators and are responsible for issuing licenses and sometimes running gambling games.
  • Ontario was the first province to offer a fully regulated, commercial iGaming market, which was launched in April 2022. By all accounts, this has been an incredibly successful operation both in terms of moving players across from unregulated offshore sites and bringing in tax revenues to the provincial coffers. British Columbia and Alberta are both looking at ways to do something similar and have already taken steps to ensure better player protections for their residents.
  • The Canadian Criminal Code prohibits unlicensed private companies from operating online casinos from within the country’s borders, but offshore online gambling companies do offer gambling opportunities for Canadians. However, advertising regulations in British Columbia and Ontario restrict how offshore operators can market their platforms. There is an emphasis on transparency and responsible gambling.
  • Canadians must be of legal gambling age for the province where they reside. This is 18 in Alberta, Manitoba, and Quebec and 19 in the others. They must be physically located in the province where the online gambling site is based. You do not have to be a resident to play at an online site, so visitors are at liberty to play.
  • Winnings from online gambling are not subject to income tax. However, if the profits from gambling are deemed to be a regular source of income, they could be treated as taxable. 

Looking to the future

So that is the current status, but what about the future? Can we expect any significant shake-ups in 2025? With Ontario largely regarded as a success, other provinces and territories have been reviewing what they offer to their residents. 

Reducing red tape in Alberta

Alberta announced earlier this year that it wanted to do something similar. However, the devil has been in the details, and the province’s Minister for Red Tape Reduction has found himself tied up in some unexpected knots. Having initially announced they would launch this year, the Minister’s press secretary, Brandon Aboultaif, recently confirmed to Canadian Gaming Business that more time is needed to consult with stakeholders before an official launch date can be announced.

“As the gaming industry continues to evolve globally and in Alberta, we want to ensure a conducive business environment while protecting the health and safety of Albertans, particularly our youth,” he said. “We want to get our iGaming strategy right by ensuring fairness and transparency to everyone.

Industry stakeholders need to continue their conversations with the legislators so they can provide more input on the model. The plan is to get things right so everyone buys into the model and there is as little friction in implementing the market as possible. It is more complicated than Ontario because Alberta has its own province-run iGaming service and there is a large charity gambling sector. This required an unexpected consultation to identify opportunities and reduce red tape simultaneously – or that is what they hoped, at least.

Aboultaif told the press

“While we aim to put the strategy forward in 2025, we will continue to provide updates as this work unfolds.”

Originally, an early 2025 launch had been anticipated, and some even claimed that Albertans would get an early Christmas present in the form of a regulated iGaming market in operation by the end of 2024.

However, Canadian Gaming Association (CGA) President and CEO Paul Burns said that the dates were always unrealistic

“I think there was a growing concern about just how they were going to get everything done in the time required,” he said. “I think the government is evaluating its timelines and making sure they can meet all of the objectives they’re setting out for themselves, and they’re giving themselves a few more months to be able to do the work.”

The CGA has recommended that Alberta follow the Ontario model, but it also wants more involvement with land-based gaming operators. This has led to extensive consultations with Alberta’s First Nations, and while those discussions are now complete, the creation of the legal framework for a market launch has not yet started.

Everyone involved says that the plan is to get it right the first time around and refutes that there are any real hurdles. The good news for Albertans is that there is a significant commitment to getting the model working. While Ontario had a successful blueprint, it could not just be copied across, and the authorities are doing everything they can to get it right.

Full steam ahead

Canada’s iGaming industry is flourishing, and there is no sign of anything changing that. Sure, there might be a few tweaks along the way, but the general direction is full steam ahead.