Quick Guide about Sports Betting Laws in Canada

Sports betting is legal in Canada, but the rules vary by province. In this guide we will explain how sports betting laws work in Canada, who regulates them, and what players need to know about legal betting sites, offshore sportsbooks, taxes, and age limits before placing a bet.

Is Sports Betting Legal in Canada?

Sports betting is legal in Canada and regulated at the provincial level. On the federal level, single-game betting was legalized in August of 2021. Soon after, all provinces in Canada launched online sports betting platforms as well as retail locations.

While legal at a provincial level, wagering at offshore and licensed sportsbooks is also legal. In terms of legal betting sites in Canada, Canadians can safely wager on sports at provincial and offshore licensed sportsbooks without fear of prosecution. 

Online Sports Betting Law  Overview

• The Canadian Gaming Association had lobbied for years to change Canada's sports betting laws. The issue did not gain much traction until the United States legalized sports betting on a state-by-state basis.
• From 1985, Canada's Criminal Code section 207(4)(b) allowed for parlay betting on multiple events on a federal level. Then, in 2021, Bill 218, the Safe and Regulated Sports Betting Act, amended it, making single-event betting legal at the provincial level. Bill-218 became law in June 2021, and the individual provinces began implementing legal sports betting.
• The legalization of sports betting benefited not only Canadian bettors but also residents as a whole. Sports betting revenue from the provinces is directed to social programs such as healthcare and education. The legalization of sports betting also brought new employment opportunities for Canadians. 

Provincial Regulation Explained

Each province in Canada regulates sports betting independently and sets its own licensing and operating rules. There is a government-run gaming body that oversees the licensing and regulation of the provincial online sportsbooks. They must follow the rules of the gaming body to remain in operation. Also, any operator that plans to offer its services in the province must obtain a license from that province’s gaming body. 

The availability of sports betting platforms varies by location. Of the 13 provinces and territories in the country, 10 have both online sportsbooks and retail betting locations. Ontario is the most populous province and has the most online sportsbooks, mainly because it is the only province with a commercially competitive market. Alberta is planning to launch that soon as well, while the other provinces are sticking to the “in-house” regulatory model for their online sports betting markets. 

Sports Betting in Ontario as a Reference Model

• Ontario announced in late 2020 that it would create iGaming Ontario, a regulated sports betting market overseen by the Alcohol and Gaming Commission of Ontario. (AGCO). It is a commercial market launched in 2022 that allows outside gambling companies to operate in the province with an AGCO license. This means many major gambling companies have opened shop in Ontario, including BetMGM, Caesars, and DraftKings. 
• Since the sportsbooks hold a valid license from the AGCO, there are strong consumer protections in place, including responsible gambling tools and information.

International Sportsbooks and Canadian Players 

• As stated before, Canadians are allowed to legally bet on sports at internationally (offshore) licensed sportsbooks. Recognized offshore gaming bodies license sports betting platforms and must hold that license for players from Canada to play legally. There are many legitimate, solid offshore online sportsbooks popular with Canadian players, especially outside Ontario. 
• Since offshore companies do not have to comply with provincial gaming bodies' rules and regulations, they may face some restrictions. Payment blockages and advertising limitations are two examples. However, many offshore-licensed sites offer solid sports betting services, including competitive odds, bonuses and promotions, and accepted payment methods. You must ensure any offshore site you plan to play at holds a license from a recognized gaming body. 

Taxes on Sports Betting in Canada 

Recreational bettors who wager on sports do not have to pay taxes on their winnings. Sports betting is considered a hobby, not a profession. However, professional gambling or business-like sports betting may be subject to taxes on winnings. If a person’s primary source of income comes from sports betting, their winnings will likely be taxed. The factors that can affect tax status can be:

• Frequency of betting
• Intent
• Reliance on winnings

The Canada Revenue Agency (CRA) evaluates if a person should be taxed or not for sports betting on a case-by-case basis. According to the CRA Income Tax Folio S3-F9-C1, it states, “gambling prizes are not taxable unless they are from employment, a business or a property, or a prize for achievement in a field you ordinarily take part in.” 

Since tax treatment can vary depending on individual circumstances, players should consult a qualified tax professional if unsure. 

Age Limits and Responsible Gambling

The legal gambling age in Canada is either 18 or 19, depending on the province or territory. 

• Alberta -18
• British Columbia – 19
• Manitoba -18
• New Brunswick – 19
• Newfoundland and Labrador – 19
• Northwest Territories -19
• Nova Scotia -19
• Nunavut -19
• Ontario – 19
• Prince Edward Island – 19
• Quebec – 18
• Saskatchewan – 19
• Yukon – 19

No matter the age limit, it is essential that you bet on sports on licensed platforms. These legitimate, safe online sportsbooks will offer stronger player protections and responsible gambling tools.