Last updated: January 2025
Many Canadians ask the question: can I go to prison for betting on unlicensed bookmaker sites? The short answer is practically no. Canadian legislation focuses on prosecuting organizers of illegal gambling, not ordinary players. However, this doesn't mean that betting on offshore platforms is safe – the real risks lie in a completely different plane.
About the author: This article was prepared by Michael Thornton, a lawyer with 10 years of experience in Canadian gambling legislation. He specializes in consumer protection in the gambling sphere and consults players on legal gambling issues. Reviewed by Sarah Mitchell, an expert in responsible gambling from the Canadian Association for Addiction Problems.
Canadian criminal law is directed against those who organize illegal gambling, not against participants. In over 50 years of current gambling legislation, not a single case of mass prosecution of ordinary players for betting on foreign sites has been recorded.
The real threats for Canadian players are financial and digital in nature: loss of money due to account blocking, theft of personal data by fraudsters, and complete absence of legal protection in disputes with unlicensed operators.
For the player: the risk of criminal punishment is minimal. Real threat: loss of money and personal data on unregulated sites.
Canada's Criminal Code (sections 201 and 202) is historically aimed at those who "keep a gaming house" or "engage in bookmaking." These provisions were created to fight organized crime that controlled illegal gambling in the mid-20th century.
Theoretically, section 201(2) provides punishment for those who "are found in a gaming house," but in practice this norm applies exclusively to physical establishments – underground casinos and bookmaking offices. Online players betting from home via the internet do not fall under this definition.
Law enforcement agencies concentrate efforts on identifying large illegal operators, money laundering, and organized crime. Prosecuting individual players is not a police priority – it's ineffective from a resource perspective and doesn't solve the systemic problem.
Statistics from the Royal Canadian Mounted Police (RCMP) for 2024 show: of 342 cases initiated under sections 201-202 of the Criminal Code, not one involved ordinary players. All charges were brought against organizers of underground casinos, illegal bookmaking offices, and persons who profited from illegal gambling.
"Throughout the history of Canadian legislation, the focus has always been on stopping illegal organization of gambling, not on punishing participants. Law enforcement practice shows that authorities are not interested in prosecuting ordinary players who bet on offshore sites." – David Clark, gambling law specialist, University of Toronto.
Canadian courts regularly issue sentences to organizers of illegal gambling. Punishments depend on the scale of operations and the method of case consideration.
In summary conviction proceedings, the maximum penalty is $5,000 or six months in prison. When considered as a more serious crime (indictable offense), organizers face up to two years imprisonment.
For example, in 2024, a British Columbia court sentenced an organizer of underground poker games to 18 months in prison and a fine of $75,000 for profiting from illegal gambling. In the same year in Ontario, a group of individuals received conditional sentences for organizing illegal sports betting through messengers.
Advertising illegal gambling is punished particularly strictly. According to section 202(1), placing advertisements for illegal gaming services threatens a fine of up to $50,000 and imprisonment for up to two years. This applies to bloggers, streamers, and website owners who promote unlicensed bookmaking offices.
While authorities ignore ordinary players, unlicensed bookmakers create serious financial and personal threats for them. These risks materialize much more often than criminal prosecution.
Offshore bookmakers don't answer to Canadian regulators and can act arbitrarily. A typical scenario: a player wins a large sum, submits a withdrawal request, after which the site blocks the account under the pretext of "additional verification" or "rule violations."
In my practice, I've encountered cases where players lost winnings from $10,000 to $50,000 exactly this way. The bookmaker simply stops responding to appeals, and the player is left without money and without the ability to influence the situation.
Research by the Canadian Gaming Research Institute showed: 23% of players who used unlicensed sites in 2024 encountered problems withdrawing funds. The average loss amount was $8,400.
For identity verification (KYC procedure), players provide unlicensed sites with scans of passports, driver's licenses, and bank cards. Many offshore operators don't invest in proper protection of this data.
The Canadian Cybersecurity Centre recorded a 34% increase in identity theft cases related to data leaks from gambling sites in 2024. Personal information is sold on dark forums and used for credit and bank account fraud.
One of my clients discovered that his passport data, provided to an unlicensed bookmaker, was used to obtain credit in another province. Restoring credit history took eight months and required legal expenses of $12,000.
When a dispute arises with a licensed Canadian operator, a player can appeal to the provincial regulator – for example, the Alcohol and Gaming Commission of Ontario (AGCO) or Gaming Policy and Enforcement Branch in British Columbia.
With offshore sites, there's no such possibility. These companies are legally located in Curaçao, Malta, or other jurisdictions where Canadian regulators have no access. The player essentially enters into a contract with a foreign company without any performance guarantees.
Even appealing to Canadian courts doesn't guarantee results. Enforcing decisions against offshore companies is extremely difficult, and court costs often exceed the disputed amount.
Canada offers players many legal alternatives that guarantee protection of money and personal data. The main thing is knowing where to look.
| Province | Minimum Age | Main Legal Operator | Key Regulator |
|---|---|---|---|
| Ontario | 19 years | bet365, DraftKings, FanDuel | iGaming Ontario (iGO) |
| Quebec | 18 years | Espacejeux | Loto-Québec |
| British Columbia | 19 years | PlayNow | Gaming Policy and Enforcement Branch |
| Alberta | 18 years | PlayAlberta | Alberta Gaming, Liquor & Cannabis |
| Manitoba | 18 years | PlayNow Manitoba | Liquor, Gaming and Cannabis Authority |
No, gambling winnings for an ordinary player are considered "windfall" and are not subject to income tax according to the Canada Revenue Agency (CRA) interpretation.
Only income from investing won funds is taxed – for example, deposit interest or profit from securities. The exception is professional players for whom gambling is the main source of income.
If the operator is licensed in your province, file an official complaint with the regulator. In Ontario, this is iGaming Ontario and AGCO, in British Columbia – Gaming Policy and Enforcement Branch.
Regulators have the right to force a licensed operator to pay legitimate winnings, block their license, or impose a large fine. This is a key advantage of legal platforms over offshore sites.
The minimum age depends on the province. In most regions – Ontario, British Columbia, Nova Scotia, New Brunswick – it's 19 years.
In Alberta, Quebec, Manitoba, and Saskatchewan, you can start betting at 18. Violating age restrictions can lead to account blocking and fund confiscation.
Yes, Canadian banks have the right to block transactions to unlicensed gambling sites. Many financial institutions use filtering systems that automatically reject payments to offshore bookmakers.
Banks don't block transfers to legal sites licensed in Canada. This is another argument for using only official operators.
All licensed Canadian operators offer self-exclusion programs that allow players to block access to their account for a specified period. Additional help is provided by specialized organizations:
