Legal guide to real money gambling in Canada
There is NO definitive answer to the question is online gambling in Canada legal. It seems to be a cloudy area with some people saying yes gambling online is legal and other saying no it is not. What is important to note is that no Canadian has ever been prosecuted for playing at a real money online casino. It is safe to say it is legal for a Canadian person to gamble online for real cash, but it is illegal for a Canadian person to run an online real money casino within Canada without the appropriate approval and licences.
What laws still apply to gambling?
Back in the 1960’s any form of gambling was illegal, that was a long time ago and things have changed quite a bit. Over time the government became more lenient or relaxed towards gambling. The government let the decision lie within the individual provinces and slowly different forms of gambling were opened up as legal to Canadians.
These forms of gambling included:
- Bingo
- Raffles
- Lotteries
- Sports betting
- Horse racing
- Land based casinos
- Online casinos
How have real money online casino laws change in Canada
The online casino laws have changed over time and the industry is now monitored by a casino regulator. Each province or state will monitor online gambling sites but the Kahnawake Gaming Commission is one of the most used regulators within Canada.
What is Kahnawake and why is it different
Kahnawake is located in Quebec, Canada it is an Indian Reserve. It is important to know about this place as it was one of the first regions to home a gaming commission. This gaming commission (Kahnawake Gaming Commission) provides gaming licenses to many online casinos, sports books sites, poker rooms and other online gambling companies. What makes an online casino licensed by Kahnawake ideal for Canadian players is that it adheres to a strict set of rules and regulations set out by the commission.
The Kahnawake Gaming Commission was setup in June 1996, in July 1999 the commission granted its first interactive gaming licence. There are now four different type of licenses issued by the Kahnawake Gaming Commission:
- Interactive Gaming Licence
- Secondary Client Provider Authorization
- Key Person Licence
- Client Provider Authorization
Once a license has been issued to an online casino from the Kahnawake Gaming Commission this casino is now fully legal for players in Canada. It is ideal to play at one of these online casinos as they are now held responsible by the gaming authority to provide a safe and fair gambling experience.
The tax laws and your winnings
The Canadian tax law states that winnings are commonly not taxed unless gained through a business contract. In simple terms you will only be taxed on your winnings if you are a professional gambler, so as long as you are gambling for real money for fun your winnings will remain tax free.