Ontario Online Gambling Legislation

Table of Contents

Overview

Ontario is the first — and so far the only — Canadian province to open a regulated, competitive online gambling market to private operators. Since April 4, 2022, licensed companies have been able to offer online casino games, sports betting, and poker to Ontario residents through a framework overseen by the Alcohol and Gaming Commission of Ontario (AGCO).

The regulated market exists alongside OLG.ca, the province’s government-run online gambling site. The key difference is that the new framework allows private companies to operate legally, provided they meet the AGCO’s licensing and compliance requirements.

Before this market opened, Ontarians who wanted to gamble online had two options: use OLG.ca (limited in game selection and features) or use offshore sites that operated in a legal grey area. The regulated market was designed to bring those players into a framework with consumer protections, fair game standards, and responsible gambling requirements that offshore operators are under no obligation to provide.

The Federal Framework: Criminal Code and Section 207

To understand how online gambling works in Ontario, you need to start at the federal level. Gambling in Canada is governed by the Criminal Code of Canada, which broadly prohibits gambling activities unless they fall within specific exceptions.

The most important exception is Section 207, enacted as part of a 1985 amendment. It authorizes provincial and territorial governments to “conduct and manage” lottery schemes — a term defined broadly enough to include lotteries, casinos, slot machines, sports betting, and other games of chance. Provinces can operate these activities directly through Crown corporations or delegate them to licensed private operators.

What Section 207 actually says

Section 207(1)(a) allows a provincial government to “conduct and manage a lottery scheme” within its borders, either on its own or through a designated agent. This is the legal authority that allows Ontario to run OLG and, more recently, to authorize private operators through iGaming Ontario.

Importantly, the Criminal Code targets the supply side of illegal gambling. Operating a gambling business without provincial authorization is a criminal offence under Section 202 (bookmaking) and Section 206 (lotteries). However, there is no provision in Canadian law that criminalizes individual players for placing bets online, even on sites that are not provincially licensed. This distinction is significant and is widely confirmed by Canadian legal experts.

Bill C-218: The single-event sports betting breakthrough

For decades, Canadian law only permitted parlay betting (multi-event wagers) through provincial sports lotteries such as Sport Select and Proline. Single-event sports betting — the type of wagering most popular worldwide — was prohibited under the Criminal Code.

Bill C-218, the Safe and Regulated Sports Betting Act, received Royal Assent in June 2021. It amended the Criminal Code to remove the prohibition on single-event sports betting, allowing provinces to offer (or authorize others to offer) single-game wagers for the first time. This was the critical federal change that made Ontario’s competitive sportsbook market possible.

The AGCO’s Role

The Alcohol and Gaming Commission of Ontario is the provincial regulator responsible for the oversight of all gambling activity in Ontario — from brick-and-mortar casinos and horse racing to the province’s online gambling market. Established in 1998, the AGCO operates as an arm’s-length agency of the Ontario government, meaning it functions independently of day-to-day political influence.

Regulatory responsibilities

In the context of online gambling, the AGCO’s responsibilities include:

• Issuing and revoking operator registrations
• Setting and enforcing standards for responsible gambling, game fairness, and player protection
• Investigating complaints from players and conducting compliance audits
• Approving the games, platforms, and software providers that operators are permitted to use
• Enforcing advertising and marketing standards
• Overseeing anti-money laundering (AML) compliance
• Publishing regulatory guidance and standards documents for the industry

Standards and registrar’s standards

The AGCO publishes detailed Registrar’s Standards for Internet Gaming, which set out the specific requirements operators must meet. These standards cover everything from how games must be tested and certified to how player complaints must be handled, how marketing must be conducted, and how player funds must be protected. The standards are publicly available and updated periodically as the market evolves.

The AGCO operates independently of the government and has broad authority to impose penalties — including monetary fines, licence conditions, suspensions, and outright licence revocation — on operators that fail to meet its standards. Since the market launched, the AGCO has taken public enforcement action against several operators, demonstrating that its oversight is not merely theoretical.

iGaming Ontario

iGaming Ontario is a subsidiary of the AGCO that was created specifically to conduct and manage Ontario’s online gambling market. While the AGCO sets the rules and enforces compliance, iGaming Ontario handles the commercial side: it enters into operating agreements with registered operators and manages the revenue-sharing arrangements between operators and the province.

Think of it this way: the AGCO is the regulator (the “referee”), and iGaming Ontario is the market manager (the “league organizer”). Both are essential, but they serve different functions.

The “conduct and manage” requirement

Under Canadian law, a provincial entity must “conduct and manage” gambling for it to be legal. This is not just a formality — it’s a Constitutional requirement rooted in Section 207 of the Criminal Code. iGaming Ontario fulfils this legal requirement by acting as the “conductor and manager” of the online gambling market, while the AGCO maintains independent regulatory oversight.

In practical terms, this means that every legal bet placed on a regulated Ontario platform technically flows through iGaming Ontario’s framework. The operator runs the platform and takes the risk, but iGaming Ontario’s conducting role is what makes the activity lawful.

Revenue sharing

Operators in Ontario’s regulated market share a percentage of their gaming revenue (gross revenue minus player winnings) with the province through their operating agreements with iGaming Ontario. The standard rate is approximately 20% of gaming revenue, though exact terms may vary by operator and can be subject to negotiation. You can see the full list of companies that have completed this process on our licensed operators page.

This revenue flows to the Ontario government and contributes to provincial priorities. iGaming Ontario publishes quarterly market reports that include aggregate revenue figures, giving the public transparency into the market’s financial performance.

How Licensing Works

To operate legally in Ontario’s regulated market, a company must complete a rigorous, multi-step process. This is intentionally thorough — the bar for entry is high, and that’s by design.

Step 1: AGCO registration

The operator applies for registration with the AGCO, which conducts thorough background checks on the company and its key personnel. The registration process examines:

• Corporate integrity: Ownership structure, beneficial owners, directors, and officers are all scrutinized. The AGCO checks for criminal records, regulatory sanctions in other jurisdictions, and connections to organized crime.
• Financial viability: The company must demonstrate sufficient financial resources to operate sustainably and meet its obligations to players (including having the ability to pay out all player balances at any time).
• Technical standards: The operator’s platform, games, and software must meet the AGCO’s technical requirements. This includes independent testing and certification of random number generators (RNGs), data security protocols, and geolocation technology to verify that players are in Ontario.
• Responsible gambling policies: The company must have comprehensive responsible gambling programmes in place before it can be registered.
• Anti-money laundering: Compliance with FINTRAC (Financial Transactions and Reports Analysis Centre of Canada) requirements and the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.

Step 2: iGaming Ontario operating agreement

Once registered with the AGCO, the operator enters into a commercial agreement with iGaming Ontario that sets out revenue-sharing terms, operational requirements, and performance expectations. This agreement is what authorizes the operator to actually begin offering its services to Ontario players.

Step 3: Ongoing compliance

Registration is not a one-time event. Operators are subject to continuous compliance monitoring, periodic audits, and the obligation to report material changes in their corporate structure, key personnel, or financial status. The AGCO can and does conduct unannounced compliance reviews.

Game suppliers — the companies that develop the actual casino games and sports betting platforms — must also be independently registered with the AGCO. This means that every layer of the product players interact with has been vetted by the regulator.

Regulated vs. Unregulated: Why It Matters

One of the most common questions from Ontario players is: “What’s the actual difference between a regulated site and an offshore site?” The answer matters more than most people realize.

What you get at a regulated site

• Verified fair games: Every game on a regulated platform has been independently tested and certified. Random number generators are audited. You can trust that the outcomes are genuinely random.
• Segregated player funds: Your money is held in accounts separate from the operator’s business funds. If the operator goes bankrupt, your balance is protected.
• Real recourse: If you have a dispute with a regulated operator, you can file a complaint with the AGCO. The regulator will investigate and can compel the operator to act. At an offshore site, you have no recourse beyond the operator’s own customer service.
• Identity verification: Regulated operators must verify your identity and age (19+). This prevents underage gambling and protects against identity theft.
• Responsible gambling tools: Deposit limits, loss limits, session timers, self-exclusion — these are mandatory at regulated sites. See our responsible gambling resources for more on the tools available to Ontario players. Offshore sites may offer them voluntarily, but there’s no enforcement mechanism.
• Data protection: Regulated operators must comply with Ontario and Canadian privacy legislation, including how they store and use your personal information.

What you risk at an unregulated site

• No guaranteed game fairness: Without independent testing requirements, you have no way to verify that the games are fair.
• No fund protection: Your deposited money is held at the operator’s discretion. If the site closes, your balance may be lost.
• No legal recourse in Ontario: The AGCO has no jurisdiction over offshore operators. If you’re cheated or your withdrawal is refused, you have no meaningful avenue for complaint.
• Tax implications: Winnings from unregulated sites may be treated differently for tax purposes (see the Tax section below).
• Payment difficulties: Canadian banks and payment processors are increasingly blocking transactions to unregulated gambling sites, which can make deposits and withdrawals unreliable.

Player Protections

Ontario’s regulatory framework includes some of the strongest player protection requirements in North America. These are not optional features that operators can choose to implement — they are mandatory conditions of holding an AGCO registration.

Mandatory responsible gambling tools

All licensed operators must offer:

• Deposit limits: Daily, weekly, and monthly limits that players can set and reduce immediately. Increases are subject to a mandatory cooling-off period.
• Loss limits: Caps on net losses over a set period.
• Session time limits: Alerts and optional automatic session endings after a specified duration of play.
• Reality checks: Periodic notifications showing how long you’ve been playing, how much you’ve wagered, and your net position.
• Self-exclusion: The ability to voluntarily exclude yourself from the platform for a set period (typically 6 months to 5 years). During self-exclusion, the operator must close your account, prevent you from opening a new one, and stop all marketing communications.
• Transaction history: Full access to your deposit, withdrawal, wagering, and win/loss history.

Fund segregation

All operators must hold player funds in segregated accounts, separate from the company’s operating funds. This is a critical protection — it means that if an operator experiences financial difficulties or goes out of business, player balances are ring-fenced and not available to creditors. This requirement is modelled on best practices from the UK’s Gambling Commission.

Identity verification and age requirements

The legal age for online gambling in Ontario is 19. All regulated operators must verify your identity and age through a Know Your Customer (KYC) process before you can place any real-money wager. This typically involves providing government-issued ID and may include address verification. The process also helps prevent money laundering and fraud.

Filing complaints

If you experience a problem with a licensed operator — whether it’s a refused withdrawal, a game dispute, or a responsible gambling concern — you can file a complaint directly with the AGCO. The regulator investigates all reports of non-compliance and has the authority to compel operators to take corrective action. This is one of the most important practical differences between regulated and unregulated sites.

Tax Implications for Ontario Players

One of the most frequently asked questions about online gambling in Ontario concerns taxes. The good news for recreational players is that Canada’s tax treatment of gambling winnings is generally favourable.

Recreational players

For the vast majority of players, gambling winnings are not taxable in Canada. The Canada Revenue Agency (CRA) considers gambling winnings to be a “windfall” rather than income, provided that gambling is not your primary source of income or a business activity. This applies to winnings from casino games, sports betting, poker tournaments, and lotteries.

Professional gamblers

If gambling is your primary source of income — for example, if you are a professional poker player or a full-time sports bettor — your winnings may be considered business income and subject to income tax. The CRA considers factors such as the degree of organization, the pursuit of profit, and the frequency of activity when making this determination. If you believe this may apply to you, consult a tax professional.

Reporting requirements

While recreational gambling winnings are not taxable, you should be aware that regulated operators are required to report certain transactions to FINTRAC (Canada’s financial intelligence agency) under anti-money laundering legislation. Large transactions, suspicious transactions, and electronic fund transfers above certain thresholds are reportable. This is not a tax obligation — it’s a financial crime prevention measure.

History & Timeline

Ontario’s regulated market didn’t appear overnight. It was the product of decades of federal legislative evolution, years of provincial policy development, and a global shift in how governments approach online gambling.

The federal foundation (1985–2020)

• 1985: The Criminal Code of Canada is amended to include Section 207, granting provinces the authority to conduct and manage gambling — including lottery schemes, casinos, and games of chance. This remains the bedrock of legal gambling in Canada.
• 1990s–2000s: Provinces establish their own gambling regimes. Ontario creates the Ontario Lottery and Gaming Corporation (OLG) to run lotteries, casinos, and eventually online gaming through OLG.ca.
• 2010–2020: Several private member’s bills attempt to legalize single-event sports betting in Canada (notably Bill C-290 and Bill C-221). All fail to pass both chambers of Parliament, largely due to concerns about the integrity of professional sports.

The breakthrough (2021)

• February 2021: Bill C-218, the Safe and Regulated Sports Betting Act, is introduced in the House of Commons by MP Kevin Waugh.
• June 22, 2021: Bill C-218 receives Royal Assent, amending the Criminal Code to allow single-event sports betting. This is the single most important legislative change for online gambling in Canada in decades.
• August 27, 2021: Single-event sports betting becomes legal across Canada. Ontario announces its intention to open a competitive iGaming market.
• September 2021: The AGCO publishes its Registrar’s Standards for Internet Gaming, establishing the regulatory framework that operators must meet.

Market launch and growth (2022–present)

• April 4, 2022: Ontario’s regulated iGaming market officially launches. The first wave of licensed operators — including bet365, BetMGM, PointsBet, theScore Bet, FanDuel, DraftKings, and Betway — go live on day one.
• June 2022: PokerStars becomes the first regulated poker room in Ontario, launching a ring-fenced player pool for the province.
• Q1 2023: The market passes $1 billion in quarterly gaming revenue for the first time.
• 2023: The AGCO begins taking visible enforcement actions, issuing compliance penalties to operators that violated advertising standards and responsible gambling requirements.
• 2024: The number of registered operators exceeds 30. iGaming Ontario reports that the regulated market is successfully capturing share from offshore sites, with player migration accelerating.
• Q4 2025: Total quarterly gaming revenue reaches $2.1 billion — up 18% year-over-year. More than 35 operators hold active licences.
• Early 2026: The AGCO announces an enhanced responsible gambling framework (effective Q3 2026), including centralized self-exclusion and mandatory behavioural monitoring. Three additional operators are approved, bringing the total to 38.

Advertising & Marketing Rules

The AGCO imposes strict advertising standards on all licensed operators — arguably some of the strictest in North America. These rules have been updated multiple times since the market launched, often in response to public concerns about the volume and tone of gambling advertising.

Core advertising requirements

• Advertising must not target minors or depict anyone who appears to be under 25 years of age
• All advertising must include responsible gambling messaging and information about support resources
• Operators cannot use inducements as the primary message of an advertisement
• Advertising must not portray gambling as a way to achieve financial success or solve financial problems
• Operators must not make misleading claims about the likelihood of winning
• Advertising must not suggest that skill can influence the outcome of games of chance

Celebrity and athlete endorsements

Celebrity and athlete endorsements are permitted but subject to specific rules. Endorsers must be clearly identified, the commercial nature of the relationship must be disclosed, and the endorsement must not suggest that gambling contributed to the celebrity’s success. The AGCO has paid particular attention to endorsements involving active professional athletes, given the close relationship between sports betting and professional sports in Ontario.

Social media and digital marketing

The AGCO’s advertising rules apply to all channels — including social media, influencer marketing, email, and push notifications. Operators must ensure that their digital marketing complies with the same standards as traditional advertising, including age-gating requirements on social media accounts.

Enforcement & Penalties

A regulatory framework is only as strong as its enforcement. The AGCO has demonstrated since the market launched that it takes compliance seriously and is willing to act against operators that don’t meet its standards.

Types of enforcement actions

The AGCO has several enforcement tools at its disposal:

• Compliance notices: Formal notices requiring operators to correct specific deficiencies within a set timeframe.
• Monetary penalties: The AGCO can impose financial penalties on operators for regulatory violations. Penalty amounts depend on the severity of the violation and whether it’s a repeat offence.
• Licence conditions: The AGCO can impose additional conditions on an operator’s registration, such as enhanced monitoring, restrictions on certain products, or mandatory third-party audits.
• Suspension: In serious cases, the AGCO can suspend an operator’s registration, temporarily preventing it from offering services.
• Revocation: The most severe sanction — the AGCO can revoke an operator’s registration entirely, permanently removing it from the Ontario market.

Public enforcement record

The AGCO publishes enforcement actions on its website, providing transparency to the public and a deterrent to the industry. Since the market launched, enforcement actions have primarily focused on advertising violations, responsible gambling deficiencies, and failures to implement required player protection tools on time. The public nature of these actions means that players can check whether an operator has a clean compliance record.

How Ontario Compares to Other Provinces

Ontario remains unique in Canada for its open, competitive approach to online gambling regulation. Other provinces have taken different paths, and understanding these differences helps illustrate why Ontario’s model matters.

Province-by-province comparison

• British Columbia: Online gambling is offered through PlayNow.com, operated by the BC Lottery Corporation. The market is a government monopoly — no private operators are licensed. Players can legally use PlayNow but have no access to competing private brands through a regulated framework.
• Alberta: PlayAlberta.ca is operated by Alberta Gaming, Liquor and Cannabis (AGLC). Like BC, the market is a government monopoly with no private operator competition.
• Quebec: Espace jeux (Espacejeux.com) is operated by Loto-Québec. Quebec has taken an aggressive stance against offshore gambling, at one point attempting to compel internet service providers to block access to unlicensed gambling sites. This approach was legally challenged and has not been fully implemented.
• Manitoba and Saskatchewan: These provinces offer online gambling through their lottery corporations (Manitoba Liquor and Lotteries and SIGA, respectively). Both are government-run monopolies.
• Atlantic Canada: The Atlantic Lottery Corporation runs online gaming for the four Atlantic provinces (New Brunswick, Nova Scotia, Prince Edward Island, Newfoundland and Labrador). No private operator market exists.

Why Ontario chose a different path

Ontario’s government determined that a competitive market with multiple licensed operators would better serve players than a monopoly model. The reasoning was straightforward: competition drives better products, better odds, better user experiences, and better responsible gambling tools. It also generates more tax revenue by bringing players from the unregulated offshore market into a taxed, regulated environment.

Ontario’s model is being closely watched by other provinces, by the federal government, and by international regulators as a potential template for competitive, regulated online gambling markets. As of early 2026, no other province has announced concrete plans to follow Ontario’s model, but industry observers expect at least one additional province to begin exploring a competitive framework within the next few years.

How to Verify That an Operator Is Licensed

With dozens of operators marketing to Ontario players — some regulated, some not — it’s important to know how to verify that the site you’re using is legitimately licensed.

Check the AGCO’s public registry

The AGCO maintains a public list of all registered internet gaming operators on its website. This is the authoritative source. If an operator is not on this list, it is not regulated in Ontario — regardless of what the operator’s own website may claim.

Look for the iGaming Ontario branding

Regulated operators are required to display information about their regulatory status. Look for references to the AGCO, iGaming Ontario, or Ontario’s regulated market in the site’s footer, terms and conditions, or “About” section.

Check the URL

Many international operators run both a regulated Ontario-specific site and a separate global or offshore site. Make sure you’re on the Ontario version. Regulated Ontario sites will typically use geolocation to confirm you’re in the province and will require full identity verification before you can play.

When in doubt

If you’re unsure whether a site is regulated, check our Licensed Operators page for a complete list, or visit the AGCO’s website directly. Don’t rely on the operator’s own claims — verify independently. You can read more about our editorial approach.

Future Outlook

Ontario’s regulated market is still relatively young, and several important developments are on the horizon.

Enhanced responsible gambling standards

The AGCO’s enhanced responsible gambling framework, announced in April 2026, will take effect in Q3 2026. Key changes include centralized self-exclusion (allowing players to exclude from all regulated sites through a single registration) and mandatory behavioural monitoring tools. These changes will bring Ontario in line with the most advanced responsible gambling regimes internationally.

Potential expansion to other provinces

Ontario’s model has generated significant interest from other provinces and from the federal government. While no other province has formally announced plans to open a competitive market, industry analysts expect at least one additional province — most likely British Columbia or Alberta — to begin exploring a similar framework by 2027.

Evolving advertising standards

Gambling advertising remains a politically sensitive topic. The AGCO has already tightened its advertising standards several times since the market launched, and further restrictions are possible. Industry observers expect continued attention to areas like social media marketing, influencer partnerships, and the use of inducements in advertising.