With approximately 19.3 million adults gambling in the country, it is evident that Canada has a healthy and growing casino industry. It was responsible for $12.54 billion in revenue in 2021 and $14.2 billion just one year later—an increase of more than 13%.
Part of the reason for this massive increase is the ever-growing number of online gambling options available to residents. Ontario, in particular, has become a gambling hotspot in the country, with the highest revenues among any Canadian province or territory for lottery, online casinos, and sports betting.
If you’re from or visiting the Heartland province, the ultimate guide to gambling in the region below will teach you everything you need to know.
Gambling Laws in Canada
Before discussing Ontario, it is worthwhile to look at the turbulent history of gambling in Canada.
From 1802, the Canadian government had a zero-tolerance attitude toward gambling. As such, all forms of gambling were prohibited, and anyone guilty of enjoying the pastime would have been guilty of a federal offence. The law overseeing gambling in the country was the Criminal Code of 1892.
However, due to the incredible amount of black-market gambling in the country, the government relented and decided to make gambling a provincial matter. In 1970—not even 100 years later—amendments to the law made it the responsibility of individual provinces to set their own gambling laws.
This legislative change opened the floodgates for those rearing to gamble. With many provinces opting to legalize the pastime, the government eventually completely retracted the prohibition on gambling in 1985. The only restriction that remained was betting on single-event sports, but in 2021 this was also removed.
Gambling in Ontario
Gambling officially came to Ontario a few years after the federal government permitted provinces to decide their own laws on gambling. The Gaming Control Act was passed in 1992 and established a legal framework for gambling in the region.
One of the main factors for introducing the law was the establishment of two new casinos—one in Niagara Falls and one in Windsor.
At the time, the new legislation was enforced by the Gaming Control Commission Ontario (GCCO). This commission ensured that only licensed operators and suppliers could operate in the province, but it only regulated this until 1996.
With the Alcohol and Gaming Regulation and Public Protection Act being signed into law in 1996, the GCCO was ousted for the new Alcohol and Gaming Commission of Ontario (AGCO). This new governing body took over all work on legalizing and licensing casino and gambling entities in the province.
Under the new legislation, online gambling is legal in Ontario. However, this was due to a slight grey area in the law. In 1996, because online casinos were only starting to emerge, the law didn’t make specific mention of them.
However, most online casinos accepting players from the area were based internationally—operating out of other countries and licensed by external governing bodies. Because these casinos weren’t in Ontario, they didn’t need licensing from the local government.
More than this, because they were located outside of Canada, they circumvented any laws stating gambling not licensed by a provincial body is illegal. In essence, Canada had no jurisdiction over these sites and couldn’t stop players from accessing them.
To control this and help build a local market for online gambling, Ontario launched a new commission in 2022. Called iGaming Ontario, this new body isn’t responsible for establishing new legislation surrounding gambling in the province. It is, however, responsible for enforcing current laws.
Working secondary to AGCO, iGO (as it has become known) ensures that all casinos, websites, and suppliers licensed by AGCO are following legislation and adhering to requirements to keep their license.
Because of iGO’s diligence, there are many online casinos and gambling websites operating within the province that are entirely safe for players to use. The commission has also helped enforce stringent frameworks to ensure players can make the most of gambling online.
Taxation on Gambling in Ontario
Canadian gamblers in any of the seven provinces that allow most forms of gambling don’t need to fear filing taxes. This is because, unlike the US and many other countries, winnings derived from gambling in Canada are seen as non-taxable.
Ontario residents also fall into this group. Regardless of the amount won, anything gained from gambling is not seen as a regular form of income. It is, instead, classified as a windfall or seldom-occurring payout.
The only interest charged in Ontario is if the winnings are used to gain any interest through things like investment accounts. The interest generated by the winnings is taxable and must be reported.
Because of this, gamblers in the province and throughout the country are encouraged to track all wins and losses as accurately as possible. When it is time to file taxes, this information will help them file correctly and avoid problems.
Online vs Brick-and-Mortar Casinos
As mentioned previously, online gamblers in Ontario are spoilt for choice. Aside from all the external casino websites that allow players from the area, more than 60 casinos are registered with the iGO in the province.
If you’re in Ontario and looking to gamble, however, you won’t only have the online option. The region is also home to 28 physical casinos that offer several entertainment options, events, and chances to win big.
Because they are not part of the online gambling industry, these casinos do not register with iGaming Ontario. Instead, they register directly with the AGCO. Therefore, they follow the same strict guidelines and frameworks to ensure gambling in the province is secure and enjoyable.
Other articles from totimes.ca – otttimes.ca – mtltimes.ca
