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The type of payment accepted at these machines is dependent entirely on provincial regulation. Section Any person who is found to have contravened this section is liable to a fine. As expected, the decision is currently under appeal with the Quebec Court of Appeal. In sum, any competition for a prize must be examined through the lens of section of the Code in order to determine whether it might constitute an illegal lottery. Each applicant will, however, be required to pass the risk assessment outlined in question 2. Generally, in order to be registered as an operator or supplier, a company must complete three forms: i an application for registration; ii an enterprise disclosure form; and iii a personal disclosure form. The five criteria related to businesses e. Registrations may be revoked for any number of reasons but only after disciplinary action short of revocation. There is presently an active debate amongst gaming regulators and Canadian lawyers about the legality of daily fantasy sports, some taking the position that competitors are merely engaged in a form of betting and therefore engaging in illegal conduct, while others take the position that it is a game of pure skill and therefore a legal competition. Having said that, it is generally agreed that if a person other than a competitor bets on the outcome of a fantasy competition, that constitutes illegal betting. Consumer Services section of the Department of Environment, Labour and Justice regulates bingo, raffles, casino nights, and charitable gaming. Section 5 k specifically identifies casinos as a type of organisation that must comply with all requirements in Part 1 Record Keeping, Verifying Identity, Reporting Of Suspicious Transactions And Registration of the Act. Each province has its own process for applying for gaming supplier registrations but, again, they are relatively similar. Breaches of the federal Code are a matter of criminal rather than civil law and thus the ambit of liability is, in practice, quite narrow. On the other hand, the courts do not appear to be as concerned by a broad application of section 2 which provides that every person found without lawful excuse in a common gaming house or common betting house is guilty of a summary conviction offence. Having said that, all levels of government and all of the provincial regulators have taken the position that such operations are illegal and should be closed down. Each province differs in this regard but as the organisational structures are similar, Ontario will be used as an example. Prosecution of gaming offences is not common, primarily because of the monopolistic nature of the industry and the resulting lack of private operators.{/INSERTKEYS}{/PARAGRAPH} As noted above, the only entities that can legally supply regulated Relevant Products in Canada are provincial governments either directly through their respective lottery corporations or through service suppliers to those lottery corporations and charitable organisations licensed by provincial governments. The Quebec legislation was held by a Quebec court to be unconstitutional in and thus is currently of no force and effect. Each registrant must also pay an annual fee e. The key limitation for all regulated Relevant Products arises from the fact that such products must be provided exclusively by a provincial government. The Code makes it possible for directors, officers and senior management to be charged and convicted of a criminal offence with respect to the activities of their corporation pursuant to the sections of the Code concerning aiding and abetting and parties to an offence sections 21, 22, Breaches of provincial gambling legislation involve, almost by definition, breaches of the requirement to obtain a registration for the supply of gaming services and to comply with the regulations concerning such activity. Provincial governments, alone or in concert, are permitted to provide any digital gaming activity that they desire, subject only to the restrictions in section 4. As summary conviction offences are the most minor offences in the Code and typically result in a small fine, courts are willing to convict individuals who are caught in sweeps of illegal sports betting events and large poker operations. The persons who are required to be registered as gaming suppliers differ from province to province, but only to a minor extent. For example, VLTs are provided to the public by provincial lottery corporations in all provinces other than British Columbia and Ontario. There is less certainty around the issue of digital gaming provided by persons whose operations are located entirely outside of Canada. For policy reasons, there are varying restrictions from province to province with respect to the nature of the games and their locations within the applicable jurisdiction. There is no substantive difference in the treatment of land-based and digital offers of the Relevant Products. As the providers of the products to the residents of their respective provinces, the provincial government either through the applicable lottery corporation or through one of its branches typically Finance will exercise significant control over the selection of products, the locations in which the products will be placed, and the marketing that is permitted. In practice, culpability does not typically flow to individuals if the service was being supplied by a corporation unless there is egregious conduct involved. Does your jurisdiction permit virtual currencies to be used for gambling and are they separately regulated? Prior to expiry, the registrant must complete and submit the same form as used for the initial application for registration. There are no slot machines available in two of the three territories Nunavut and Northwest Territories , while they are available in Yukon. Private companies are prohibited from operating any type of gambling machine anywhere in Canada except pursuant to a registration issued by a provincial regulator. Other unregulated Relevant Products, such as play-for-free games, are only limited by the requirement to comply with laws generally applicable to all service providers in Canada. The PCTFA was enacted and has been subsequently amended to implement measures to detect and deter money laundering and the financing of terrorist activities, to facilitate the investigation or prosecution of money laundering and terrorist financing offences including establishing record-keeping and client identification requirements for financial services providers and other persons that engage in businesses, professions or activities that are susceptible to being used for money laundering, and the financing of terrorist activities , and to respond to the threat posed by organised crime by providing law enforcement officials with the information they need to investigate and prosecute money laundering or terrorist financing offences. Set out below are the national and provincial statutes that apply to activities that are generally agreed to constitute gambling. As the providers of gambling services in their respective jurisdictions, the provincial lottery corporations have all addressed social responsibility in their regulations and policies, if not in their statutes. As noted above, gambling in Canada is a provincial Crown monopoly pursuant to section of the Code. The Competition Act is the only federal statute that is applicable to contests and competitions. See question 5. Furthermore, the Code, and the little case law there is on the subject, draw fine distinctions between games of pure skill, games of pure chance, and games of mixed chance and skill. Games of pure skill that is, skill games and competitions with no element of chance do not fall within the definition of an illegal lottery in section 1 of the Code and so can be legally provided without the consent of a regulator or any other government body. Any private companies that provide services to the public on behalf of the lottery corporations are required to conform with those policies and regulations. Most provinces have read this to prohibit any type of sports betting other than parlay betting. With respect to offshore digital gaming, neither the provincial governments nor the federal government have taken steps to limit access to such sites. Legal online sports betting therefore does not permit betting on single games or other types of sporting events. Having said that, cards are either strongly recommended or required for AML purposes. This is true whether the activities are provided in a land-based facility or digitally. While the Code is drafted broadly, Canadian courts have exercised their discretion under the principles of statutory interpretation to ensure that such sections are read narrowly, given that they are penal in nature. Games of chance, and games of mixed chance and skill, are considered illegal lotteries unless no consideration is paid to enter, play or win a prize. The service supplier registered or unregistered, as the case may be is liable, as well as the directors and officers in some cases. In the case of unregulated Relevant Products, operators may provide such products from inside or from outside of Canada, although as noted elsewhere in this chapter, fantasy leagues and eSports remain in the grey zone in terms of legality in Canada. {PARAGRAPH}{INSERTKEYS}ICLG - Gambling Laws and Regulations - Canada covers common issues in gambling laws and regulations 鈥 including relevant authorities and legislation, application for a licence, licence restrictions, digital media, enforcement and liability 鈥 in 39 jurisdictions. If the registrant continues to be non-compliant, the AGCO will issue a notice advising the registrant that they have 15 days in which to appeal the decision to a separate government appeal tribunal the Licence Appeal Tribunal that is not associated with the AGCO. If the registrant does not appeal or loses on appeal, the registration will be revoked. They are then restricted by the terms of the contract entered into with the provincial lottery corporation or other agent of the Crown to whom they will be supplying goods or services. While the foregoing is not applicable by statute to unregulated Relevant Products, providers of such unregulated products would be well advised to voluntarily comply with the same policies. Poker, for example, is considered to be a game of mixed chance and skill as there is an element of chance in the game flowing from the dealing of cards. Provincial governments are allowed to provide any form of terminal or machine-based gaming that they choose. There are no firm residency requirements or restrictions on persons applying for registration. As noted above, the only entities that can legally supply gambling in Canada are provincial governments either directly through their respective lottery corporations or through service suppliers to those lottery corporations and charitable organisations licensed by provincial governments. Any company that wishes to supply gambling facilities may approach a provincial government with a proposal for a gambling facility which the government would, by law, be required to conduct and manage, with the proponent of the plan acting as the operator under contract with the government. The providers of unregulated Relevant Products are subject to generally applicable tax laws. While there is no legislation or case law that specifically criminalises or otherwise prohibits the provision of digital gaming by private companies, it is generally accepted that private digital gaming provided from within Canada for Canadian players will be caught by the prohibitions found in the Code. The advertising and marketing of regulated Relevant Products is subject to the provisions of the applicable provincial gambling statutes and guidelines. The conduct of fantasy sports or shares competitions is not currently addressed by any federal or provincial statutes or regulations. Notwithstanding the foregoing, all provinces do require registration of any person supplying goods and services for use in the operation of gambling facilities and the provision of gaming services by the province. Please include in this answer any material promotion and advertising restrictions. With very limited exceptions such as those for charities and local fairs, no person other than a provincial government is legally permitted to supply gambling facilities or services in Canada. Based on generally accepted interpretations of section , it is possible nonetheless to structure a game of either nature so as to render it legal. As persons are registered within a particular class of gaming suppliers, they are by definition restricted with respect to the activities in which they can legally engage. At the federal level, the Code is the primary legislation that impacts gambling in Canada, as it contains both the primary prohibitions and exceptions respecting gambling and the federal penal law concerning proceeds of crime including money laundering Part XII. Additionally, section To date, there are no reported cases that consider this section or the prohibition. There are no material restrictions on legal that is, government-run digital gaming in Canada. Sections through to and including section make all types of gambling, betting and lotteries illegal throughout Canada, with very limited exemptions such as pari-mutuel betting on horse races provided for in section While the federal Code is the applicable prohibitory statute, all of the regulatory statutes and regulators are provincial with the one exception being pari-mutuel betting on horse races which is governed by the federal Canadian Pari-Mutuel Agency. As the majority of private corporations operating in the gambling industry in Canada are, of necessity, merely registered suppliers of gambling products and services to the provincial governments, there are no industry-specific taxes or levies. For example, if no consideration is payable in order to enter the competition, Canadian case law has made it clear that any person hosting or offering such a competition is not illegally operating a common gaming or betting house. As the majority of private corporations providing Relevant Products in Canada are, of necessity, merely registered suppliers of gambling products and services to the provincial governments, there are no industry-specific taxes or levies. Companies that offer digital gaming products are only permitted to supply their products to the applicable provincial operator who will then provide the product to consumers in its jurisdiction. The AGCO issues registrations with expiry dates. Such companies are required to comply with generally applicable federal and provincial income tax laws, but there is no separate regime of taxes within the industry. It is a given that minors are excluded from all forms of gambling activity including the purchase of lottery tickets. Some unregulated Relevant Products such as fantasy leagues and eSports are in a grey zone as various provincial regulators have taken the position that, in their view, such products contravene the Code. Once again, using Ontario as an example, the OLG has a Responsible Gambling Centre at all sites, with staff from the Responsible Gambling Council at eight locations; there is mandatory training for all front-line and management staff; and they run a self-exclusion programme that uses technology such as facial recognition. Those policies generally include training programmes for employees regarding responsible gaming, advising and informing all players concerning responsible gaming and how to make informed choices about products and play in general, and the operation of voluntary exclusion programmes. In Ontario, registrants who are not in compliance with the law usually receive a warning first, followed by a monetary penalty if still non-compliant. To date, there have been no charges laid against any such offshore operator, and so the law in that regard remains untested. Typically, there are tiers of gaming registrants ranging from individuals who will be working in casinos through to the companies that are operating those casinos. At present, virtual currencies are not recognised by any level of government in Canada. For example, a competition or draw for a prize may fall into any one of a number of baskets depending on its structure. The lottery corporations in each province will decide which types of products they wish to carry from time to time and are able to change those policy decisions at will. Such companies are required to comply with generally applicable federal and provincial income tax laws but there is no separate regime of taxes within the industry.