Ontario Gambling Laws — iGaming Rules & Legal Guide

Ontario has one of the most developed legal online gambling frameworks in North America. Since the province launched its regulated private-operator market in April 2022, players have had access to dozens of licensed, competitive online casinos in Canada and sportsbooks operating within a clear legal framework. Understanding how that framework works — who regulates it, what laws govern it, and what protections players have — is valuable knowledge for anyone who gambles online in Canada.

This guide covers the complete legal landscape for online gambling in Ontario as of 2026: the history of Canadian gambling law, the impact of Bill C-218, the roles of the AGCO and iGaming Ontario, how the regulated market works in practice, and what legal protections apply to players. We also address the legal status of offshore sites and the question of whether gambling winnings are taxable.

A Brief History of Gambling Regulation in Canada —

Gambling in Canada has a long and evolving legal history. Prior to the 1960s, virtually all gambling was prohibited under the Criminal Code of Canada. The only legal exceptions were small-scale charitable lotteries, horse racing (which operated under a separate federal framework), and pari-mutuel betting.

The 1969 Criminal Code Amendments

The modern era of Canadian gambling law began with the 1969 amendments to the Criminal Code, which granted provinces the authority to conduct, manage, and licence lottery schemes. This created the foundational legal structure that still governs Canadian gambling today. The federal government establishes what activities are legal and delegates authority to provinces; the provinces exercise that authority to build their own regulatory frameworks.

Through the 1970s and 1980s, provinces steadily expanded their gambling activities. Provincial lottery corporations were established, followed by land-based casinos in the early 1990s. Ontario opened Casino Windsor (now Caesars Windsor) in 1994, the first of what would become a large network of OLG-operated properties offering everything from online slots to table games.

The Internet Era and Grey Market

The rise of the internet in the late 1990s created a new regulatory challenge. Online gambling sites based offshore began offering services to Canadians with no regulatory oversight. The Criminal Code did not address online gambling explicitly, creating a legal grey area. Players could access foreign sites without clear legal risk, while provincial regulators had no authority over offshore operators. There was no way to verify RTP and volatility on these unregulated platforms.

For more than two decades, Canadians gambled online in this grey market. Billions of dollars in gambling revenue left Canada annually, going to operators based in jurisdictions like Malta, Gibraltar, and Kahnawake, with no consumer protection, no tax revenue for the province, and no responsible gambling oversight.

British Columbia and Quebec Act First

British Columbia launched PlayNow.com in 2004, an OLG-equivalent provincial site operated by the BCLC. Quebec followed with Espacejeux. These were legal, provincially run sites but faced the same challenge: they could not legally exclude competing offshore operators from serving their residents.

Bill C-218: The Single-Event Sports Betting Revolution

One of the most significant pieces of gambling legislation in Canadian history was a private member's bill: Bill C-218, the Safe and Regulated Sports Betting Act.

What Was the Problem?

Before C-218, Section 207(4)(b) of the Criminal Code prohibited wagering on the outcome of a single sports event. Canadians could only legally bet on sports through parlay bets requiring at least two or three selections combined. This unusual restriction meant that legitimate Canadian sportsbooks — like those operated by provincial gaming commissions — could not offer single-game betting, while offshore sites operating outside Canadian law faced no such constraint.

Canadian bettors who wanted to bet on a single NHL game, single CFL game, or single fight had to use offshore sites. The practical effect was that Canadian law protected no one and cost provinces enormous tax revenue.

The Bill and Its Passage

Bill C-218, introduced by Conservative MP Kevin Waugh, proposed a simple amendment: delete the single-event betting prohibition from Section 207(4)(b) of the Criminal Code. The bill passed through the House of Commons with broad multiparty support, received Royal Assent on June 29, 2021, and came into force on August 27, 2021.

The impact was immediate and substantial. Within weeks, the OLG updated its ProLine+ platform to offer single-event bets, and provinces began planning expanded sportsbook frameworks. Understanding how online casinos work became increasingly relevant as the regulated market took shape. Ontario used the momentum of C-218 as a catalyst to accelerate its broader iGaming market launch.

The AGCO: Ontario's Gambling Regulator

The Alcohol and Gaming Commission of Ontario (AGCO) is the independent provincial agency responsible for regulating all gambling in Ontario, including casinos (online and land-based), sports betting, lottery, bingo, and charitable gaming events.

AGCO Structure and Mandate

The AGCO was established in 1998 under the Alcohol and Gaming Commission of Ontario Act by merging the former Gaming Control Commission and the Liquor Control Board of Ontario's enforcement division. It reports to the Minister of the Attorney General.

For iGaming specifically, the AGCO:

• Issues registrations to private operators wanting to offer iGaming services in Ontario
• Enforces the iGaming Conduct Standards, a detailed rulebook covering responsible gambling, advertising, data security, game fairness, and financial requirements
• Conducts compliance audits and investigation of complaints
• Takes regulatory action against non-compliant operators, including fines, warnings, and registration revocation
• Publishes a public operator registry so players can verify which sites are legally registered

AGCO Regulatory Actions

The AGCO has not been a passive regulator. Since the iGaming market launched, it has issued public enforcement notices for violations including improper advertising, insufficient responsible gambling disclosures, and failure to properly implement self-exclusion controls. This active enforcement posture has distinguished Ontario's market from more permissive jurisdictions.

iGaming Ontario: The Market Manager

iGaming Ontario (iGO) is a subsidiary of the Ontario Lottery and Gaming Corporation (OLG), established specifically to manage Ontario's competitive online gambling market. iGO's role is distinct from the AGCO's.

The iGO Model

Rather than creating a government monopoly (like OLG's ProLine for lotteries or Espacejeux in Quebec), Ontario chose a competitive, private-operator model. Under this model:

• Private operators (both Canadian and international) register with the AGCO and enter into a commercial agreement with iGO
• iGO provides the legal framework that allows private operators to serve Ontario players within a regulated structure
• Operators pay a revenue share to iGO, a portion of which flows to the provincial government
• iGO maintains the province-wide self-exclusion database that all registered operators must check at player login
• iGO publishes quarterly market reports with aggregate financial data, providing transparency about market size and revenue

How Ontario's Regulated iGaming Market Works

Ontario's regulated market launched on April 4, 2022, making it the first Canadian province to allow private-sector online gambling operators. The model was designed to accomplish several goals simultaneously: generate provincial revenue, protect players, drive offshore players to regulated alternatives, and attract high-quality international operators.

The Registration Process for Operators

To operate legally in Ontario, a casino or sportsbook must:

1. Apply for registration with the AGCO and pass due diligence checks (financial integrity, corporate structure, beneficial ownership)
2. Demonstrate compliance with the iGaming Conduct Standards, including responsible gambling tools, fair gaming certifications, and data security requirements
3. Enter into an Operating Agreement with iGO covering commercial terms and revenue sharing
4. Connect to iGO's technical systems, including the self-exclusion database integration
5. Launch Ontario-specific player protections including geolocation to limit the product to Ontario players

Market Size and Growth

Ontario's regulated iGaming market has grown significantly since launch, with popular operators like JackpotCity and 888casino among the registered brands. According to iGO's published quarterly reports:

• The market generated over C$2 billion in gross gaming revenue in its first full year (2022-23)
• Revenue has grown year-over-year as more players transition from unregistered offshore sites to registered platforms
• Over 90 operators were registered with iGO as of early 2026
• Ontario accounts for the majority of Canada's regulated online gambling market by population and revenue

Legal Operators in Ontario: What to Look For

With over 90 registered operators, players have a wide range of choices. The key distinguishing feature of a legally registered Ontario operator is clear: it will display its iGO registration status prominently, have AGCO-compliant responsible gambling tools in the account settings, and appear on the iGO operator registry at igamingontario.ca.

Player Protections Under Ontario Law

Ontario players enjoy a comprehensive set of legal protections that do not exist for players using unregistered offshore sites. These protections are enforceable by the AGCO, meaning players have recourse if an operator violates them.

Financial Protections

• Fund segregation: Player deposits must be held separately from operator operating funds. If an operator becomes insolvent, player balances are protected.
• Withdrawal rights: Operators cannot impose unreasonable withdrawal restrictions. Players have the right to withdraw their own deposited funds at any time, subject to standard identity verification.
• Transparent bonus terms: Bonus terms must be disclosed clearly before a player accepts them. Misleading or hidden wagering requirements are a conduct violation.
• Fair game certification: All games — from blackjack to roulette — must use independently certified RNGs. Operators cannot manipulate game outcomes.

Privacy and Data Protections

All AGCO-registered operators, including live casino providers, must comply with Ontario's Personal Information Protection and Electronic Documents Act (PIPEDA) and any applicable provincial privacy legislation. This includes secure handling of KYC documents, prohibition on selling player data to third parties, and data breach notification requirements.

The Legal Age for Gambling in Ontario

The legal gambling age in Ontario is 19 years old. This applies universally to all forms of regulated gambling: online casinos, land-based casinos, sports betting, lottery tickets, and charitable gaming events. The minimum age of 19 aligns Ontario with most other provinces, with the exception of Alberta, Manitoba, and Quebec, where the minimum age is 18.

All AGCO-licensed online operators are required to verify player age before permitting real-money gambling. In practice, this means players must upload government-issued identification (passport, driver's licence) and have it approved before making a first withdrawal. Some operators verify age at registration; others allow play before verification but require it before withdrawal. Either way, operators face severe consequences for allowing underage gambling.

Provincial vs Federal Regulation: How They Interact

Canadian gambling regulation involves two levels of government that interact in a specific, well-defined way.

Federal Level: The Criminal Code

The federal government's role is essentially to define what gambling activities are not criminal. The Criminal Code creates exemptions from gambling prohibitions for provincially licensed gambling and charitable gambling. The federal government does not operate casinos, issue licences, or enforce gambling rules at the operator level. Its role is to set the outer legal boundary.

Provincial Level: Licensing and Regulation

Within the boundaries established by the Criminal Code, provinces have exclusive authority to license, operate, and regulate gambling. Each province has its own regulator, its own laws, and its own approach. Ontario's AGCO is independent of British Columbia's BCLC is independent of Quebec's Loto-Québec. There is no pan-Canadian gambling regulator.

This means that gambling laws vary by province in ways that matter to players:

The Legal Status of Offshore Casinos in Canada

This is a question many Canadian players have, and the honest answer is: it is complicated.

The Criminal Code does not explicitly make it illegal for an individual Canadian to use an offshore gambling site. There is no provision in federal or Ontario law that creates a criminal offence for a player who visits an unregistered foreign casino. In practice, Canadian players have never been prosecuted for using offshore sites.

However, since April 2022, offshore sites operating in Ontario without AGCO registration are technically in violation of Ontario law. The AGCO has authority to take action against unregistered operators but has limited practical ability to enforce against sites hosted in foreign jurisdictions.

From a player protection standpoint, the practical difference is significant. Players at registered Ontario casinos have AGCO recourse if things go wrong. Players at offshore sites have none. For this reason, choosing an AGCO-registered operator is strongly recommended.

Are Gambling Winnings Taxable in Canada?

For the vast majority of Canadian gamblers, the answer is no. The Canada Revenue Agency (CRA) treats gambling winnings as windfall income — money received by luck rather than through employment, business, or investment. Windfall income is not assessed under the Income Tax Act.

The exception applies to professional gamblers who derive their primary income from gambling activities. Courts have found in some cases that a taxpayer who gambles systematically with a view to profit, and who derives the majority of their income from gambling, can be assessed on their net gambling income as business income. This is a narrow exception that does not apply to recreational players.

Casino bonuses, no deposit bonus winnings, and free spins are treated the same as regular winnings: not taxable for recreational players.

Looking Ahead: Ontario iGaming in 2026 and Beyond

Ontario's regulated iGaming market continues to mature. As of 2026, the market is broadly regarded as a success story in responsible regulation: it has generated substantial provincial revenue, driven a meaningful shift from offshore to regulated play, and provided Ontario players with a level of consumer protection that did not previously exist.

Expected developments include ongoing regulatory evolution as the AGCO refines conduct standards based on market experience, potential expansion of the private-operator model to other provinces that currently operate monopolies, continued growth in registered operators and player numbers, and possible federal legislative activity related to problem gambling research and inter-provincial data sharing.

For players, the key practical takeaway is clear: playing at an AGCO-registered casino is the legally and practically superior choice. You get player fund protection, fair game certification, responsible gambling tools, fast payouts, and AGCO recourse — none of which are available at unregistered offshore sites. Regulated operators also support trusted payment methods like Interac and cryptocurrency.

Frequently Asked Questions: Ontario Gambling Laws 2026