Canada not including Ontario, Rest of Canada (ROC)
While offshore operators may in fact be active in the ROC, under the Canadian Criminal Code and in the eyes of the provincial governments those operators are acting in an unregulated manner that is contrary to law. The overview provided herein addresses the regulatory regime that at the time of writing exists solely within the ROC.

Canada, less Kahnawáke & Ontario (Unregulated)
Under the Criminal Code, only provincial government monopolies may “conduct and manage” online gambling (“igaming”). The provincial monopolies may provide lotteries, casino games, parlay and single event sports betting (except pari-mutuel horse race betting) and poker online, but only some choose to do so. To date, private operators have only operated pursuant to contracts with the provincial monopolies which require that the provincial government owned operating agency must remain the entity that “conducts and manages” gambling.

The qualifying criteria to successfully bid on such contracts differ on a province-to-province and project-to-project basis. The courts have provided limited guidance on the vital question of what functions the provincial governments must continue to carry out in relation to gambling in order to remain the entity that is “conducting and managing” the activity. It is commonly understood that the answer to this question turns on an examination of numerous “indicia of control and management” to determine whether the provincial government is acting as the “operating mind” of the gambling activity.

For that reason, contractual arrangements between provincial government entities and private operators generally set out restrictions on the autonomy of the private operators in such areas as testing, acceptance reviews and governance procedures, to ensure the provincial government entities have the capability to establish and implement policies in decision-making rights and responsibilities, performance oversight and reporting, and strategy and innovation.

Kahnawáke (Regulated)
Since 1996, the Mohawk Council of Kahnawáke has claimed the right to conduct, manage and regulate igaming conducted via servers located on the Mohawk Territory of Kahnawáke in Quebec.

Notwithstanding that the operation of these lottery schemes on their face constitute offences found in Part VII of the Criminal Code, the Council has claimed the right as an incident of their self-proclaimed status as a “sovereign nation” and relied upon their “inherent aboriginal right” to conduct and regulate gambling protected by section 35 of the Constitution Act, 1982. No law enforcement action has been taken against these activities. See also in this connection reference to Kahnawáke in the ”Licensing and regulation” section.

The jurisdictional claims of the Mohawk Council of Kahnawáke have not been adjudicated in a court of law, and at the time of writing, the activities carried out via servers on the Mohawk Territory of Kahnawáke exist in a legal “grey area”, in which the Canadian law enforcement and legal authorities evidence no present intention to challenge the right of the KGC to authorise igaming activities that might otherwise contravene the Code. This situation has persisted for 24 years, and at the time of writing there is no indication that it will change.

Market size
The Canadian Gaming Association (“CGA”) estimates that approximately CAD 15B was bet on sports in Canada in 2020 with only CAD 500M of that amount being bet through websites authorised by the provincial governments. The CGA has not provided recent figures in relation to casino games and poker.

Competitive landscape
British Columbia’s “Playnow.com” and Quebec’s “Espacejeux.com” both offer internet lottery, poker, parlay and single event sports betting and casino games. British Columbia, Manitoba and Quebec have pooled liquidity on an inter-state poker platform provided by G2 Tech. Ontario’s “playolg.com” website offers casino games and lottery.

The Atlantic Lottery Corporation, a joint operation of the provinces of Newfoundland and Labrador, New Brunswick, Nova Scotia and Prince Edward Island, operates a website that offers lottery ticket sales, instant win games, bingo and parlay and single events sports betting.

Localisation
Not applicable.

Top Key Attractions and Challenges
Attractions

• Strong potential for growth, as studies have shown 75% of Canadians engaged in some form of gambling in 2021, before the opening of the Ontario market to private igaming operators.

Challenges

• Lack of open regulated market for igaming operators and their suppliers.
• Prominent teams in all major professional sports, giving the country strong potential as a sports wagering hub.
• Multicultural population with an interest in a wide range of global sporting events.