Is Crypto Gambling Legal
in Canada? 2026

The Criminal Code & Gambling in Canada

The main federal statute on gambling in Canada is contained in the Criminal Code of Canada, Part VII (Sections 197–207). The Code provisions have formed the basis of Canadian gambling law since 1892 and have undergone periodic amendments — most significantly in 1969, when the provinces were granted the right to operate lottery schemes, and in 1985, when the Code provisions concerning criminal liability for the conduct of private operators were clarified.

What the Criminal Code Actually Says

Section 207 of the Criminal Code specifically permits certain types of gambling when carried out by or on behalf of provincial governments:

• Lottery schemes (including online gaming) operated by a province
• Games of chance conducted in licensed premises
• Charitable gaming under a provincial licence
• Computer-facilitated gaming within a province's regulatory framework

Betting at offshore internet casinos is not a crime in Canada. The Criminal Code specifically outlaws most of the major forms of gambling, with the exception of certain defined lottery schemes. Notably, the Code does not make it a criminal offence for a private Canadian citizen to wager at an online casino outside Canada. The law criminalises the licensed operator of an unlawful casino, not its Canadian bettors. To date, no charges have ever been brought against any individual in Canada for gambling at an offshore internet casino.

The 2021 Single-Event Sports Betting Amendment

In 2021, Bill C-218 — the Safe and Regulated Sports Betting Act — was passed, amending the Criminal Code to give provinces the authority to offer single-event sports betting. Previously, the only legal form of sports betting under provincial schemes was parlay wagering. With these amendments, sports betting sites that accept cryptocurrency are now able to legally operate within Canada. Ontario became the first province to leverage this change, allowing licensed private operators to offer single-event sports betting from April 2022.

Province-by-Province Breakdown

In Canada, online gambling is regulated at a provincial level, resulting in a very inconsistent approach across the country. Some provinces allow for a private, market-based approach to online gambling, while others maintain a state-run monopoly on gaming activities. Most provinces have not enacted legislation specifically addressing online gambling.

Ontario's Regulated Market (iGaming Ontario)

Ontario launched iGaming Ontario (iGO) in April 2022, making it the first jurisdiction in Canada to introduce a fully open and privately licensed online gaming market. Online gaming operators are licensed by the Alcohol and Gaming Commission of Ontario (AGCO) and are required to comply with the Registrar's Standards, which include responsible gaming practices, advertising and marketing rules, data protection, and technical requirements.

What iGO Means for Ontario Players

• Consumer protection: Licensed operators must offer self-exclusion, deposit limits, and responsible gambling tools
• Dispute resolution: Ontario players can escalate unresolved complaints to AGCO
• Tax compliance: Licensed operators pay provincial gaming revenue fees
• Advertising standards: Operators must follow AGCO advertising guidelines — no advertising to minors, no false or misleading bonus claims

As of 2026, the iGO market has over 40 licensed operators. Unfortunately, almost all Bitcoin-native and no-KYC casinos are not licensed under iGO — they accept Ontario players as grey-market offshore operators. Only Toppz in our rankings holds an iGO licence. While iGO-licensed casinos offer better player protections, it generally means full KYC verification is required and players miss out on the crypto-native features available at offshore alternatives.

Crypto-Specific Legal Considerations

The use of cryptocurrency (Bitcoin, Ethereum, USDT, etc.) falls within the framework of Canadian law. According to Canadian regulatory bodies, cryptocurrency is treated as a commodity, not legal tender. There are a number of practical implications for gamblers to be aware of:

Cryptocurrency Classification in Canada

• Depositing and withdrawing BTC at an offshore casino is treated as a commodity transfer — no specific anti-gambling banking laws apply to crypto transactions in Canada
• Canadian banks cannot stop transactions to crypto gambling sites because the blockchain allows cryptocurrencies to move peer-to-peer directly, which differs from fiat card transactions that banks can flag
• FINTRAC requires reporting of large crypto transactions (over $10,000 CAD equivalent) through registered MSBs, but this reporting requirement is between the exchange and the MSB — not between the gambler and FINTRAC

KYC and Crypto Casinos

No-KYC crypto casinos are a great option for Canadians who want to play without having to provide ID. There is nothing in Canadian law that compels you to identify yourself to a casino in a foreign country. The KYC measures are in place to satisfy the Anti-Money Laundering (AML) requirements of the casino's licensing body — you as the Canadian player are not mandated to identify yourself.

Offshore Grey-Market Casinos — The Reality for Most Canadians

The overwhelming majority of Canadians who gamble online do so at foreign, grey-market online casinos — websites licensed and operated out of a foreign jurisdiction (typically Curaçao, Malta, Gibraltar, the Isle of Man, or Kahnawake) but not specifically licensed to operate in Canada.

Is This Legal?

"Grey market" is a very accurate description — these casinos occupy a legal space that is neither explicitly permitted nor explicitly prohibited for Canadian players. The Canadian government has not enacted legislation targeting individual online gamblers, and to this day no enforcement action has ever been taken against a Canadian player for using an offshore site.

What Licences to Look For

• Curaçao eGaming (CEG) — Most common licence for crypto casinos. Requires fair game certification and dispute resolution, though oversight is lighter than MGA.
• Malta Gaming Authority (MGA) — Highest-standard European licence. Strict player fund segregation and dispute resolution requirements.
• Kahnawake Gaming Commission (KGC) — Canadian-based regulator (Kahnawake Mohawk Territory, QC). Particularly relevant for Canadian players as the KGC can be reached domestically.
• UK Gambling Commission (UKGC) — Typically blocks Canadian players due to payment restrictions, but indicates high operator standards.

Are Gambling Winnings Taxed in Canada?

This is one of the most commonly asked questions — and the answer is nuanced.

Recreational Gamblers — Generally Not Taxable

The Canada Revenue Agency (CRA) only taxes professional gamblers' income, so if you are a casual recreational player you won't have to worry about paying tax on your winnings. Slot wins, poker wins, blackjack wins, sports bets — winnings from any type of casino game are considered a windfall, not taxable income. The same rules apply whether you receive your winnings in Canadian dollars or Bitcoin.

Professional Gamblers — May Be Taxable

The CRA views gaming or betting as an income source if it is your main source of income and you conduct your activities in a businesslike manner — this includes a consistent profit motive, accurate record-keeping, and a significant time investment. The average recreational gambler will not meet these criteria and their winnings will almost invariably be considered a windfall with no tax implications.

Bitcoin Winnings Specifically

Any gains from Bitcoin won at a crypto casino and subsequently sold or exchanged for Canadian dollars are considered capital gains — derived from the appreciation in Bitcoin's price from the date you received the winnings to the date you disposed of them. The original winnings themselves would generally not be taxable. Canada taxes 50% of capital gains at your marginal rate, and this treatment applies only to the price appreciation, not the winnings themselves.

How to Stay Safe & Play Responsibly

• Use licenced operators only — Verify the casino holds a current licence from Curaçao eGaming, MGA, or KGC before depositing
• Check provably fair certification — Bitcoin-native casinos offering provably fair games give you cryptographic verification of every outcome
• Set deposit limits — Most reputable casinos allow daily, weekly, or monthly deposit limits in your account settings
• Use cold-wallet withdrawals — Withdraw winnings to a personal hardware wallet (Ledger, Trezor) rather than leaving funds on the casino
• Know the signs of problem gambling — If gambling stops being fun, visit ConnexOntario (1-866-531-2600) or see our responsible gambling resources

Frequently Asked Questions