Are There Penalties for Gambling in Canada? Legal Gambling & Minimized Risks

Lisa Cheban
Written byWritten by:Lisa Cheban

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Lisa Cheban

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Lisa is an esteemed expert in the field of iGaming. With her extensive experience in writing iGaming content, she possesses the knowledge and skills to provide you with the most informative and engaging insights into the world of gambling.


 

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Simon Young
Reviewed byReviewed by:Simon Young

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Simon Young

Biography

Simon Young, a former national news editor and journalist, once held the prestigious position of Lead Editor at PokerStars before focusing his editorial talents on Betsquare. His illustrious career journey seamlessly bridges the realms of journalism and online gambling, crafting a unique narrative of expertise and innovation.


 

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Editorial Note: We might earn a commission from partner links on Betsquare. These commissions do not affect our writers and editors’ opinions or evaluations.

Updated on:

Feb 19, 2024, 2:06 pm

Introduction:

Gambling in Canada is quite popular and accessible, so the country’s regulations adjust accordingly. Fortunately, local regulations accept loads of forms of real money wagers, including land-based operators like Casino de Montreal, sports betting variations, and online gambling our team examines in detail. Our online casino guide for Canadians describes all the essential details in this regard, including legal gambling forms with no penalties for Canadians, so here we go to explore more details!

high payout casino money bag

Canadian Laws: Is Online Gambling Legal?

According to current Canadian laws for gambling, this activity is legal in the country and regulated by local authorities of each country. That’s why these regulators can vary depending on the area and the gambling type we are talking about. These are the most common gambling regulators for Canadian provinces:

  • New Brunswick: Alcohol and Gaming Commission of New Brunswick (AGCNB)
  • Nova Scotia: Alcohol, Gaming, Fuel and Tobacco Division (Service Nova Scotia and Internal Services)
  • Yukon: Yukon Liquor Corporation
  • Ontario: Alcohol and Gaming Commission of Ontario (AGCO)
  • Alberta: Alberta Gaming, Liquor, and Cannabis (AGLC)

In some cases, it will be enough for the site to have a local country’s licence, such as Kahnawake, or even an offshore one, including Curacao or MGA. But in some specific regions, you need to check whether there is a proper licensing for a certain region. For example, operators in Ontario can’t provide their services without the AGCO licence, so it’s the only certificate you check to choose whether you can play Canadian casino games with no penalties.

Legal Land-Based Casinos in Canada

In addition to the wide online gambling market which is the main aspect we focus on, Canadians can also access legal land-based casinos to play with no penalties for real money bets and wins. There are many casinos which are mainly combines with hotels and other entertaining establishments, and these are the top-5 legal brick-and-mortar casinos in Canada:

  • Casino Niagara (Saskatchewan)
    • Phone: +1 306-665-6888
  • Fallsview Casino Resort (Ontario)
    • Phone: +1 888-325-5788
  • Casino de Montreal (Quebec)
    • Phone: +1 514-392-2746
  • Grey Eagle Resort & Casino (Alberta)
    • Phone: +1 403-385-3777
  • Casino Nova Scotia (Halifax, Nova Scotia)
    • Phone: +1 902-425-7777

Canadian Taxation for Gambling Wins

You should consider that gambling taxes in Canada are applied according to the general law and work the same as with other incomes of Canadians. The main thing you should consider is that gambling winnings you get are taxable only when you are a professional gambler basing your income this way. However, the main country’s income from gambling is based on the work of companies providing such services, and these rates may vary from province to province. For example, a 10% tax on the initial $142,292 income in Alberta.

Risks of Illegal Gambling & Other Problems to Avoid

Canadians typically do not face legal penalties for gambling on offshore betting websites that lack a local Canadian gambling licence, unless it’s the case of a specific area which requires local regulations, such as AGCO in Ontario. However, it’s crucial to remain vigilant about potential risks that may emerge, including challenges with cashing out winnings, the risk of personal data breaches, and the presence of games with unreasonably low return-to-player (RTP) rates, all of which are considered unacceptable in licensed online casinos.

In our casino rating customized for Canadian players, we’ve pinpointed reputable options that prioritize legal compliance and security. These casinos are explicitly tailored to cater to Australians, offering local payment methods, transactions conducted in Canadian Dollars (CAD), and additional features aimed at ensuring a safe and enjoyable gambling experience. When all the safety aspects are considered, you don’t take serious risks when playing casino games online in Canada.

Legal Canadian Gambling & BetSquare: How We Test Casinos

We regularly update our list of the finest and most reputable online casinos in Canada, and our readers truly appreciate this service. It’s about time we shared our methodology for selecting and evaluating Canadian casinos which can be added to the rating of the best ones:

  • Comprehensive Research
    We meticulously research the casino’s history, along with its parent company, by delving into player reviews and payout statistics.
  • Market Analysis
    We thoroughly examine the market, considering both player needs and the latest industry trends, such as live shows 2023.
  • Licensing Verification
    Our dedicated department verifies the presence and authenticity of the casino’s license. We also scrutinize the site’s regulators.
  • Registration and Review
    We personally go through the registration process, carefully read and assess the terms and conditions, and confirm the presence of legally compliant payment systems.
  • Blacklist Protocol
    If we encounter any suspicious terms and conditions on the site or come across player complaints, the casino is promptly added to our blacklist.
  • Bonus Evaluation
    We ensure that all bonuses on the site offer fair conditions, reasonable wagering requirements, and a sensible activation amount.

Canadian Licences & Regulators: How to Check the Casino

A gambling site is safe as long as it’s regulated by independent auditors which work according to the industry’s highest standards. That’s why the presence of safety licensing tools is a must. You not only avoid penalties for gambling but also have a safe experience when playing on such sites. These are the most common licences and certificates Canadians can come across:

Licences & Certificates Description
Curacao This license is issued by the Government of Curacao, a Caribbean island nation. It allows operators to legally offer various forms of online gambling servicesOne of the advantages of a Curacao license is that it allows operators to serve players from many different countries, including Canada.
MGA Also known as Malta Gaming Authority, MGA was established in 2001 and operates under the Maltese Gaming Act. MGA-licensed operators are subject to regular audits and inspections to ensure ongoing compliance with regulations. You can often meet Canadian sites with an MGA gambling certificate.
UKGC The UKGC gambling licence provides cybersecurity and minimizes risks associated with the safety issue. The UK Gambling Commission is known as one of the strictest regulators working in Britain and beyond, so Canadian casinos can also have this safety certificate to prove their trustworthiness. 
Kahnawake Here’s a local operator. It’s a license issued by the Kahnawake Gaming Commission (KGC), a regulatory authority based in the Mohawk Territory of Kahnawake in Canada. This authority covers not a particular province but the entire country, except for the areas where a province should have a local licence.
iTech Labs Here’s a trustworthy regulator testing software rather than operators. Its goal is to evaluate and certify the Random Number Generators used in casino games. In fact, iTech Labs isn’t the only regulator for RNG-tested software, so Canadians can also come across GLI, eCOGRA, and others.

Is Canada a Prohibited Country for Gambling?

This aspect is also very interesting since gambling with no penalties for Canaidans is available only in the countries which accept this activity. To check a list of prohibited countries for gambling in Canada, it’s enough to open the site’s T&Cs, scroll down, and check a list of restricted/accepted countries. When you see that Canada is accepted, you can start playing for CAD with no penalties.

Casino Games for Canadians with no Penalties

Fortunately, there are lots of legal casino games for Canadians with no penalties for placing real money bets. They are very different in terms of rules, features, payout mechanics, and other things which influence the gameplay and its results, so players are welcome to choose an area which suits them the most. Here are the most popular Canadian legal casino games:

  • Live games
    Canadian real money games with no penalties are also great when you play with real dealers. You enjoy the real-time process when the dealer hosts the table game and communicates with players.
  • RNG tables
    When real dealer games are too complicated for your case, you can opt for RNG tables instead. They can be free due to the demo mode and are just as catchy, be it blackjack, roulette, or others.
  • Online slots
    These games are not only easy to play but also catchy due to numerous features and themes. When you pick high-RTP games, your chances to win increase due to the lower house edge.
  • Other games
    Our BetSquare team understands that everyone has different tastes, and software providers also consider this. That’s why Canadians can also play bingo, keno, crash games, and other types.
  • Bookmakers
    If we are talking about bets on sportsbooks with no penalties for Canadians, they also take place. For example, wagers of football, horse races, and so on. You can even choose local CA teams.

Online Gambling: With Penalties or Not?

Well, we’ve already explained that players joining a legal and licensed Canadian gambling site won’t face penalties for such gambling activities. However, there are some actions which are still prohibited and may cause various problems. That’s why players should be aware of these differences:

Gambling with Penalties Gambling with no Penalties
You are under the legal age and use fake documents to overcome verification. You are a 19+ (18+ for some provinces) player using your own documents. 
When players use AI in gambling to cheat and hack the casino’s site. Gamblers opt for AI as a source of information rather than a chatting tool.
You use stolen payment cards or wallets to top up your account. You use only your personal bank cards and other payment options.
You take loans to pay for your games and try to hack gambling blocks. Responsible gameplay when you plan what amount you are ready to spend.

Gambling with no Penalties: Tips for Canadians

When you want to enjoy legal real money gambling for CAD with no penalties, trust us and take into consideration a few simple yet effective tips:

  • Remember about legal age laws according to your province
  • Don’t try to cheat and use extra software in this regard
  • Never use stolen personal or payment details
  • Play responsibly and avoid compulsive gambling
  • Choose casino games where you get clear rules

CAD Payments in Legal Real Money Casinos

You can not only play legal games but also legally deposit and withdraw money in Canada. To make gambling payments in Canada with no penalties, pay attention to legal payment options which operate in the country. These can be Interac, iDebit, Skrill, PayPal, cryptocurrency, and others. When dealing with payments, remember about gambling taxes for Canadians since the money you withdraw is legal and can be reported accordingly.

Legal Canadian Casino Bonuses: Types & Examples

Casino bonuses and promotions are also legal for Canadians. Interestingly, you can analyse available promotions and choose the best ones not only via our reviews but also with the help of Artificial Intelligence which is a new gambling trend of 2023 and 2024. So, these are the popular bonuses for Canadians:

Bonus type Explanation Example
Welcome bonus It’s an offer designed particularly for newcomers who sign up for a Canadian legal online casino. 100% up to 500 CAD + 500 FS at LuckySpins Casino
Free Spins You can get a range of free spins to play a certain slot and cash out wins after wagering. Wednesday 170 Free Spins at SpinFever 
Reload offers Canadians can legally activate reload bonuses which are regular and credited on certain days. Friday Reload 250 CAD + 100 FS at National Casino

Final Thoughts

Canadian online casinos are ramping up the gambling thrill by offering loads of legal gambling forms and advantages like bonuses, cool games, and more. Canadians can access loads of fast-paying casinos which are legal and provide Canadian locals with an opportunity to place real money wagers with no penalties. This way, you can also choose a site from our rating and enjoy legal Canadian casino gameplay!

FAQ

Do Canadians face penalties for gambling online?

No, these penalties are absent when Canadians choose legal, licensed, and CA-friendly gambling sites.

What licences can Canadian online casinos have?

These can be local and offshore licences, such as AGCO for Ontario, Kahnawake, MGA, Curacao, and others.

Are real money casinos legal in Canada?

Yes, they are legal when they are licensed accordingly and provide fair services. We rate only casinos with such conditions.

How do I check whether my legal casino is safe?

You should check whether the T&Cs are clear and whether the casino’s licence is valid. Alternatively, you can rely on our rating.

What legal payment options can Canadians use?

Here in Canada, you can use different payment options, such as Interac, iDebit, Bitcoin, and lots of other legal options.

Our Review Process

At Betsquare.com, as a leading online casino affiliate website, we maintain robust sourcing standards. Our insights are derived from peer-reviewed studies, academic research institutions, and authoritative industry associations. We steer clear of tertiary references, ensuring the accuracy and reliability of our content. For a deeper understanding of our content verification processes, explore our editorial policy.

Our team of experts diligently monitors the online casino industry, ensuring our articles remain current and relevant by promptly incorporating the latest available information.
Current Version
Dec 7, 2022
Written By
Lisa Cheban
Edited By
Simon Young