How Sports Betting Works in Canada: Regulation, Markets, and Industry Structure

Martin Green
February 11, 2026

Sports betting in Canada has evolved significantly over the past several years, particularly after the legalization of single-event wagering in 2021. What was once restricted to parlay-only lottery products is now a hybrid ecosystem that includes provincially regulated platforms, privately licensed operators in certain provinces, and internationally based betting sites serving Canadian customers.

Understanding how betting functions in Canada requires more than just knowing what is legal. It involves examining the regulatory framework, provincial differences, licensing models, and how Canadian markets interact with global betting liquidity.

At Bookmakers Review, we analyze betting markets and operator standards across jurisdictions. This guide focuses specifically on how the Canadian betting landscape is structured and how it differs from other regions such as those that are served by offshore sportsbooks.

The Legal Framework of Sports Betting in Canada

Canada’s betting structure is provincially controlled. While federal law sets the broader criminal code, provinces are responsible for regulating and operating gambling within their borders.

Before 2021, Canadians could only legally wager through parlay-style lottery products. The passage of Bill C-218 changed that by allowing provinces to offer single-event betting.

Since then, provinces have taken different approaches:

Some operate government-run platforms directly.
Others allow private operators to apply for provincial licenses.
Several provinces maintain monopoly-style models.

This decentralized framework means the betting experience in Ontario differs meaningfully from that in British Columbia or Quebec.

Ontario’s Open Market Model

Ontario is currently the most developed regulated betting market in Canada. Through its iGaming Ontario framework, the province allows licensed private operators to offer betting services under regulatory oversight.

This model introduced competition within a structured compliance system. Operators must meet standards for:

Responsible gambling protocols
Advertising restrictions
Data protection
Financial reporting

Because Ontario permits multiple licensed entities, pricing and promotional structures can differ from other provinces with more centralized systems.

Government-Run Provincial Platforms

Outside Ontario, most provinces operate through government-managed lottery corporations. Examples include:

British Columbia Lottery Corporation (BCLC)
Loto-Québec
Alberta Gaming, Liquor and Cannabis (AGLC)

These entities typically run single official platforms within their province. While they offer competitive markets, the structure differs from open-license jurisdictions because competition is limited.

The result is a market environment where pricing consistency is common, but innovation may move more gradually.

Offshore Betting Sites in Canada

In addition to provincially regulated options, internationally licensed betting sites continue to serve Canadian players. These platforms operate outside provincial frameworks but are not explicitly prohibited under Canadian law when accessed by individuals.

This has created a long-standing coexistence between domestic platforms and offshore sites. Many Canadian bettors historically used international operators before provincial single-game legalization, which contributed to established cross-border liquidity in certain sports markets.

The interaction between regulated provincial offerings and offshore platforms remains a defining feature of Canada’s betting ecosystem.

How Canadian Betting Markets Compare Internationally

Canada shares several structural similarities with European betting markets but differs significantly from the United States.

Key differences include:

Provincial rather than state-based regulation
No federal licensing body overseeing operators nationwide
Earlier exposure to offshore markets before widespread domestic licensing

Compared to U.S. markets, Canada’s regulatory tone tends to be less fragmented but more provincially controlled. Compared to Europe, liquidity is often influenced by North American sports rather than global football markets.

Taxation and Consumer Considerations

One commonly discussed aspect of Canadian sports betting is taxation.

For most recreational bettors, gambling winnings are not taxed as income. However, professional gambling activity may be treated differently under Canadian tax law if it constitutes a business.

From a consumer perspective, regulatory oversight primarily focuses on:

Responsible gambling safeguards
Anti-money laundering compliance
Age verification standards

Because each province sets its own compliance structure, consumer protections may vary slightly depending on jurisdiction.

Responsible Gambling Standards in Canada

Responsible gambling frameworks are a core requirement of regulated platforms in Canada. These standards typically include:

Self-exclusion programs
Deposit limits
Time tracking tools
Access to support resources

Ontario’s open licensing model includes stricter advertising controls compared to some international markets. Messaging standards and marketing restrictions have evolved in response to concerns about promotional volume and athlete endorsements.

This reflects a broader trend toward tightening oversight as regulated markets mature.

The Role of Canadian Sports in Betting Volume

Canadian betting markets are heavily influenced by domestic sports interests, particularly:

NHL hockey
CFL football
NBA (with the Toronto Raptors)

Hockey, in particular, drives substantial national engagement. For a breakdown of how NHL betting markets operate, see our NHL betting overview.

At the same time, American leagues such as the NFL and MLB continue to account for a significant portion of betting volume due to cross-border media exposure.