History of legalized gambling in Canada

Canada has undergone a unique evolution in gambling regulation: the federal ban of the late 19th century gradually gave way to a model where provinces "lead" the industry - from lotteries and land casinos to Internet gaming. The 1969 and 1985 amendments to the Criminal Code, as well as the Supreme Court decision in R. v. Furtney (1991), which confirmed the constitutionality of provincial government, became pivotal. In the 21st century, the vector has shifted to the online channel: a landmark event was the opening of the regulated iGaming market in Ontario on April 4, 2022.

Early period: general prohibition and rare exceptions (1892-1960s)

The First Criminal Code of Canada (1892/entered into force in 1893) enshrined a general ban on gambling, continuing the line of post-confederation acts; later, the key formula "lottery scheme" (1906) appeared in the code, through which exceptions were further built. In those years, only narrow forms like tote on the run were allowed, but the general approach remained prohibitive.

1969 twist: State lotteries

The 1969 amendments to the Penal Code legalized state lotteries for the first time - for Ottawa and the provinces. This became the "front door" to controlled legalization: the government could collect revenues and manage risks through public structures. It is from here that provincial lottery corporations (BCLC, Loto-Québec, OLG, etc.) originate.

1985 reform: Provinces get coxed

In 1985, the parliament overstepped its powers: the provinces received the exclusive right to "exercise and manage" lotteries and related schemes on their territory (s. 207 of the Criminal Code), and the feds actually "left" the operational role. This legally enshrined the modern model: Ottawa defines the "framework" through criminal law, and provinces create corporations and regulate markets.

Judicial confirmation: R. v. Furtney (1991)

The Supreme Court of Canada in R. v. Furtney (1991) upheld the constitutionality of the scheme: prohibition and exceptions to it are a subject of federal criminal law, but the actual "running" of lotteries and casinos within the exceptions is the province's competence. The decision removed key legal uncertainty around provincial casinos and charity games.

From lotteries to casinos: 1989-1990s

After strengthening the legal framework, the provinces began to open casinos. Historically, one of the first is considered a casino in Winnipeg (1989); in 1993, the country's largest Casino de Montréal opened under Loto-Québec. Provincial corporations began to vertically integrate lotteries, VLTs/slots and tables, directing profits to budgets.

Indigenous special role: Kahnawà: ke

In parallel, indigenous jurisdictions formed. Kahnawà: ke Gaming Commission established on 10 June 1996 under Kahnawà: ke Gaming Law; since July 8, 1999, it has continuously licensed interactive games and has become one of the most famous regulators, especially in the online segment. This underscores the multilevel nature of Canadian regulation.

Online era: From provincial sites to Ontario's open market

Until 2022, Internet games went mainly through "own" provincial sites: for example, before the launch of the market in Ontario, OLG was the only regulated site there. ca overseen by AGCO. On April 4, 2022, Ontario launched Canada's first privately operated model running iGaming Ontario (iGO) and AGCO, opening a licensed market and introducing responsible gambling, advertising, KYC/AML and technical suitability requirements.

Why so: Distribution of powers

Constitutionally, criminal law is a federal area, but the model of exceptions in the Criminal Code allowed provinces to become "operators/managers" in practice. The Supreme Court in Furtney pointed out that this is not a "delegation of criminal law," but a permissible construction: Ottawa defines prohibition and exceptions, provinces - implementation within exceptions.

Milestones and timelines

1892/1893 - the Criminal Code with general prohibitions on gambling was adopted and entered into force.

1906 - the term "lottery scheme" is introduced into the code, formalizing exceptions.

1969 - Amendments allow state lotteries (federal and provincial).

1985 - Provinces are given the exclusive right to "run and operate" lotteries/casinos (s. 207).

1989-1993 - first major casinos: Winnipeg (1989), Casino de Montréal (1993).

1991 - R. v. Furtney, Supreme Court affirms authority model.

1996/1999 - Kahnawà: ke establishes a commission and introduces regulations for online games.

2022 - Ontario opens Canada's first market with private online operators.

Today and Beyond: Regulatory Trends

The modern Canadian model remains provincial-centric: each province/territory determines the product (lotteries, casinos, VLT, online) and liability standards, and the feds retain "framework" criminal control. In parallel, oversight of the online sector (advertising, RG standards, platform certification) is increasing, and indigenous jurisdictions continue to play a significant role in the remote licensing ecosystem. Ontario's launch has prompted a debate about the possible adaptation of approaches in other provinces, although each will assess risks, fiscal effects and technical requirements in its own way.

The legalization of gambling in Canada is not one yes/no, but a multi-year balancing process between criminal prohibition and practical governance at the provincial level. The 1969 and 1985 amendments set the architecture, Furtney confirmed it, the 1990s brought land-based casinos, and 2022 - a new era of a regulated online market. This model adapts flexibly to technology and public expectations while maintaining a focus on responsibility and public interest.