How licensing and taxation work in Canada

1) Regulatory framework: federation + provinces

Federal level (Criminal Code). Games are allowed provided that they are managed by the provinces (ground and online formats) or their authorized structures.

Provincial level. Each province/territory determines who exactly operates and by what rules: its own crown corporation, partnerships with tribes, or - as in Ontario - the admission of private operators to the online market.

Tribal (First Nations) agreements. In a number of regions, there are special agreements on land casinos and income distribution.

2) Models by region (online)

Ontario is an open regulated market.

Architecture: the regulator standardizes requirements (AGCO), and the operational "umbrella" for private brands and settlements - iGaming Ontario (iGO). Brands receive registration/approval and enter into an agreement with iGO. There is also registration of B2B suppliers (platforms, studios, aggregators, PSP, anti-fraud, etc.). Bottom line: a multi-brand market with requirements for RG/KYC/AML, technical certification and marketing.

Quebec is a monopoly of Loto-Québec (Espacejeux).

Online is controlled by a crown operator; private B2C brands are not allowed directly into the market. Suppliers work through contracts/tenders with the corporation.

British Columbia is a monopoly of BCLC (PlayNow).

A similar approach: a single portal, content - from certified studios through contracts with the corporation.

Alberta - AGLC (PlayAlberta).

Provincial online - under the control of AGLC; external technological partners are involved, but the front remains united.

Saskatchewan - SIGA/SaskGaming (PlayNow SK).

A co-management model with First Nations for land-based casinos and a single online portal under provincial control.

Manitoba/other territories.

As a rule, a "crown" model with a single portal; private B2C brands are not Ontarian.

Conclusion: only Ontario today is a "full" open market for online games; the rest of Canada are centralized crown operator portals.

3) Licensing and tolerances: who and how

B2C (player operators)

Ontario: AGCO registration + iGO agreement. Requirements: technical certification of the platform/content, RG-set, KYC/AML, reporting, control of affiliates and advertising.

Other provinces: the crown corporation acts as a B2C operator online; private companies do not get their own B2C license, but sell technology/content "in white" under a contract.

B2B (content, platform, payments, etc.)

Ontario: mandatory registration/approval of suppliers (game suppliers, gaming-related suppliers). Standards: RNG/RTP, change-management, logging, cybersecurity, privacy.

Monopoly provinces: entry - through RFP/contracts with crown operators, certification and compliance with provincial technical standards.

Personal roles

Persons responsible for compliance/AML/RG/equipment shall be declared; in Ontario - with competencies and integrity confirmed.

4) Responsible Gaming, KYC/AML, privacy

Responsible Gaming (RG). Mandatory limits (deposit/time/loss), self-exclusion at the provincial/portal level, reality checks, cooling-off, mechanic restrictions (game speed, autoplay - according to provincial standards).

KYC/AML. Identification of identity and age before admission, sanction/PEP screening, transaction monitoring, escalation of suspicious transactions, confirmation of the source of funds for triggers. Ontario formalizes expectations for online operators and their providers; crown portals apply comparable rules.

Privacy. Canadian framework (PIPEDA and provincial acts) + provincial contractual requirements: data minimization, encryption, access control, DPIA when launching new functions, log storage and incident management.

5) Taxation: how operators pay

It is important to distinguish between the fiscal payments of operators and the tax regime of players.

Operators (B2C/B2B)

Ontario (iGaming Ontario). Instead of the "classic" tax on GGR, the share of income distribution (revenue share) is used by agreement with iGO. Plus - standard corporate taxes (federal + provincial), registration/certification fees, etc.

Monopoly provinces. Crown corporation revenues go to the budget in the form of transfers/dividends; suppliers are paid under contracts. Private B2C has no direct tax on GGR because B2C is a crown operator.

VAT/Sales Taxes (GST/HST/PST)

Gambling services usually belong to a specific category: special rules for sales taxes (GST/HST) apply. More often we are talking about the fact that the player pays a bet/buy-in without "tax from above," and the provider/operator applies a special procedure for accounting and deductions (details - in the local accounting methodology and consultations with the tax adviser).

Players (winnings tax)

Amateur residents: typical winnings are not subject to personal income tax (lotteries, casinos, bets), if the game is not in the nature of "professional activity."

Professional play/organized business income: may be taxed as income.

Non-residents: deductions are possible according to the rules of the country of residence and double taxation treaties (relevant for cross-border cases).

6) Marketing and Affiliates

Ontario: strict copyright and promo rules (no promises of "quick money," with age filters and responsibility for affiliates). Registration/control of partners, a library of approved creatives, prohibition of "dark" patterns are required.

Monopoly provinces: advertising is moderate and centralized (crown brand), strict moderation of offers and wording.

7) Technique and certification

RNG/RTP certification from accredited laboratories; version and build control, immutable logs, environment separation (dev/test/prod), rollback procedures.

Cybersecurity: Vulnerability management, pen tests, SIEM/monitoring, DR/BCP plans and exercises.

Payments: only white-listed providers, SCA/3DS, anti-fraud, limits, chargebacks/alerts reporting.

8) What to choose for the operator: entry strategies

1. Ontario (online scale).

AGCO registration + iGO agreement.

Brand/skin matrix, strong RG/KYC/AML stack, behavior analytics, strict affiliate contour.

Finmodel: revenue share with iGO + corporate taxes.

2. Contracts with crown operators (monopoly provinces).

Relevant for B2B: studios, aggregators, platforms, payments, anti-fraud, live content.

RFP/tenders, technical standard compliance, SLA/certification, local support.

3. Land segment with tribal partnerships.

For offline casinos: separate agreements and compliance procedures, distribution of income, local AML/RG standards.

9) Launch Checklist (Ontario Online Operator)

Registration and due diligence of the team/beneficiaries.

KYC/AML/RG policies, escalation routes, staff training.

Content and platform certification, change-management, logs.

Geofencing within Ontario, age limit control.

White payment providers, anti-fraud, incident reporting.

Marketing: register of affiliates, approved creatives, bonus rules.

Finmodel: consider revenue share with iGO + corporate taxes and fees.

10) Short for the player: how to recognize a legal operator

Ontario Indication: AGCO/iGO logos and responsible play terms;

In other provinces - the official portal of the crown operator (PlayNow, Espacejeux, etc.);

Transparent limits/self-exclusion, clear bonus rules, clear payment terms;

Official payment methods, encryption, visible support and privacy policy.

Canada combines a federal framework and provincial autonomy. For online, this gives two ways:

Ontario Open Market with B2C/B2B registration and revenue shares in favor of iGO;
Centralized crown portals in the remaining provinces where the private sector operates through B2B contracts.

Operator taxes depend on the provincial model (revenue share/corporate taxes/crown income transfers), and for amateur players, winnings are usually not subject to personal income tax. The winner is whoever builds the honest UX, the strong RG/KYC/AML and the flawless level technique - this is what opens the door both in the Ontario open market and in the ecosystem of provincial monopolies.