Gambling and the Criminal Code of Canada

In Canada, the rules that decide whether a casino, lottery or sports bet is legal start with a single federal law: the Criminal Code. Gambling is not freely permitted across the country, nor is it simply banned. Instead, the Criminal Code makes most gambling an offence and then carves out a narrow set of exceptions — the most important being that a provincial government may conduct and manage gambling within its own borders. This page explains how that framework works, where it comes from, and what the key sections actually say.

Is gambling legal federally in Canada?

There is no separate “federal licence” to gamble in Canada, and the federal government does not run casinos or lotteries. Gambling is governed federally through the criminal law, which treats most betting, gaming and lottery activity as prohibited unless a specific exception applies. The single largest exception hands day-to-day control to the provinces. So the accurate way to describe the situation is this: gambling in Canada is legal only when it is conducted, managed or licensed by a province or territory in line with the Criminal Code — everything else is a criminal offence.

This is why the same game can be legal in one setting and illegal in another. A slot machine in a provincially run casino is lawful; the identical machine operated privately for profit is not. The deciding factor is not the game itself but who is running it and under whose authority.

What is the Criminal Code of Canada?

The Criminal Code (formally R.S.C. 1985, c. C-46) is the federal statute that defines criminal offences and penalties across Canada. Because criminal law is a federal power under the Constitution, a single Code applies nationwide — the provinces cannot create their own criminal offences. Gambling sits inside Part VII of the Code, titled “Disorderly Houses, Gaming and Betting.”

The structure of Part VII matters. Rather than listing the few things you can do, it broadly prohibits gaming and betting and then permits specific exceptions. Courts and legal scholars describe the underlying logic plainly: gambling is forbidden except where the Code specifically allows it. That is the opposite of how many people assume the law works, and it explains why unlicensed private gambling operations are illegal even when everyone involved is a willing adult.

Which Criminal Code sections cover gambling?

A handful of sections in Part VII do most of the work. Understanding what each one does makes the whole framework easier to follow.

• Common gaming and betting house offences — the Code defines and prohibits keeping, or being found in, a place used for unlawful gaming or betting. These are the provisions that make running an illegal gambling den an offence.
• Section 206 — creates the main lottery and game-of-chance offences, covering anyone who makes, prints, advertises or operates a scheme that disposes of property or money by chance.
• Section 207 — the central exception. It lists who may lawfully conduct and manage a “lottery scheme” despite the offences elsewhere in Part VII, and puts provincial governments at the top of that list.
• Section 204 — exempts pari-mutuel betting on horse racing (betting pooled among participants), which stays under federal rather than provincial control.

The phrase “lottery scheme” is broader than it sounds. Section 207(4) defines it by reference to the games of chance and mixed chance-and-skill described in section 206, which in practice captures casino games, slot machines, electronic gaming, bingo and most lotteries. A few things are expressly excluded, including three-card monte, punch boards and coin tables.

What does Section 207 actually say?

Section 207 is the hinge of Canadian gambling law: it is the provision that makes provincially run gambling legal. Subsection 207(1) sets out the parties who may conduct and manage a lottery scheme without committing an offence. In plain terms, the main categories are:

• Provincial governments — a province may conduct and manage a lottery scheme in that province, alone or jointly with another province, under laws its own legislature enacts. This is the authority behind provincial casinos, lottery corporations and regulated online gaming.
• Licensed charities and religious organizations — these groups may run a lottery under a provincial licence, provided the proceeds go to a charitable or religious purpose.
• Fair and exhibition boards — a designated agricultural fair or exhibition may operate gaming under a provincial licence.
• Licensed operators at a public amusement place — small-scale games are allowed where no prize exceeds $500 and no ticket costs more than $2.
• Inter-provincial arrangements and support services — provinces may agree to sell one another’s tickets, and anyone may do the work needed to run or take part in a scheme that is already lawful.

Two points are easy to miss. First, a province does not have to run every game directly — it can license others — but when gaming uses a computer, video device or slot machine, the province must conduct and manage it rather than licensing a private operator to do so. Second, the exception only protects activity carried out in line with the applicable provincial law or licence; stepping outside those terms removes the protection.

How did gambling move from the federal government to the provinces?

The provincial model is recent. Canada’s first Criminal Code was enacted in 1892 and came into force in 1893, and it was broadly prohibitionist — gambling was an offence with only narrow carve-outs added over the following decades. Early exemptions appeared piecemeal: charitable raffles at bazaars around the turn of the century, pari-mutuel betting on horse races in 1910, and “wheels of fortune” at agricultural fairs in 1925. Until the late 1960s, lawful gambling in Canada amounted to little more than regulated horse racing and small charitable lotteries.

Two sets of amendments reshaped the picture:

The 1969 amendments

In 1969 Parliament amended the Criminal Code to allow the federal government and the provincial governments to conduct and manage lottery schemes, and to let provinces license charities and others to run them. The stated rationale was that proceeds should serve public purposes — Quebec, facing the costs of Expo 67 and the coming 1976 Montreal Olympics, was among the strongest advocates. This is the moment legal gambling in Canada began to expand beyond horse racing and charity draws.

The 1985 amendments

Shared federal-provincial authority proved unstable. After a 1979 agreement in which Ottawa agreed not to run lottery schemes in exchange for annual payments, and further disputes in the early 1980s, the governments settled matters in 1985. In December 1985 the Criminal Code was amended to remove the federal government’s authority to conduct lotteries, leaving the provinces and territories with exclusive authority to conduct and manage lottery schemes. The 1985 changes also confirmed that a province could run gaming through a computer, video device or slot machine. This is the legal foundation of the modern landscape — provincial lottery corporations, Crown-run and privately operated casinos, and, later, regulated online gaming.

For the fuller narrative of how these dates fit together, see our guide to the history of gambling in Canada, which traces the story from the 1892 ban to today.

What gambling does the Criminal Code still restrict?

Even inside the provincial model, several limits remain fixed at the federal level. The Criminal Code — not any province — decides the outer boundaries.

• Horse racing stays federal. Pari-mutuel betting on horse races is handled under section 204 and administered by the Canadian Pari-Mutuel Agency within Agriculture and Agri-Food Canada, not by provincial gaming regulators.
• Unlicensed operations are offences. Running a casino, book or lottery without provincial authority — including offshore or “grey market” sites targeting Canadians without a provincial licence — falls outside the section 207 exceptions.
• The province must stay within its own borders. A province’s authority to conduct and manage gaming is territorial; it cannot authorize gambling in another province.
• Certain games are excluded outright. Three-card monte, punch boards and coin tables are expressly left out of the “lottery scheme” definition and cannot be made lawful this way.

What changed with single-event sports betting in 2021?

The most significant recent amendment legalized single-event sports betting. For decades the Code allowed provinces to offer only parlay-style wagers — bets that had to combine the outcomes of multiple games — because section 207(4)(b) excluded betting on a single race, fight or sporting event from what a province could conduct.

Bill C-218, the Safe and Regulated Sports Betting Act, repealed that restriction. It received royal assent on 29 June 2021 and came into force on 27 August 2021. Since then, provinces and territories can conduct and manage betting on a single sporting event — the basis for regulated sportsbooks and online sports betting across Canada. Horse racing was deliberately left under its existing federal pari-mutuel system. As with all gambling, the change did not create a nationwide right to bet; it expanded what each province may choose to offer and regulate.

Federal versus provincial roles: who regulates what?

The clearest way to read Canadian gambling law is as a division of labour. The federal Criminal Code sets the rules of the game — what counts as an offence and which exceptions exist — while the provinces operate within those rules.

• The federal government defines gambling offences, grants the provincial exception in section 207, and keeps control of pari-mutuel horse racing.
• Provinces and territories decide whether to offer gambling at all, run or license casinos, lotteries and sportsbooks, set licensing terms, and regulate operators and, in most cases, the minimum age.

Because of this, the practical details — which casinos exist, what online options are licensed, how operators are supervised — vary by province. Our overview of gambling laws in Canada explains the federal-provincial split and links to the province-by-province detail, and the guide to land-based casinos in Canada shows how the model plays out on the ground.

Common misunderstandings about the Criminal Code and gambling

Several assumptions about Canadian gambling law are simply wrong, and they cause real confusion.

• “Gambling is legal in Canada.” Only gambling conducted, managed or licensed by a province is legal. The default position in the Criminal Code is prohibition.
• “There is a federal gambling licence.” There is no federal licensing of casinos or lotteries. Authority to operate flows from the provinces under section 207.
• “Offshore sites are legal because betting isn’t a crime for players.” An operator without a provincial licence is outside the exceptions regardless of where its servers sit. The legality of using such a site is a separate and uncertain question, and the operator itself is not provincially regulated.
• “The provinces wrote these rules.” The offences and exceptions are federal. Provinces act within the Criminal Code; they cannot rewrite it.
• “Horse-race betting is regulated like casinos.” Pari-mutuel racing is a distinct, federally administered system under section 204, not part of the provincial gaming framework.

Who needs to understand this framework?

You do not need to read the Criminal Code to play a provincial lottery, but the framework matters whenever something falls outside the ordinary. It helps charities and community groups understand why a raffle needs a provincial licence, helps readers judge whether an online operator is actually regulated in their province, and explains why gambling rules differ as you cross a provincial line. Above all, it clarifies the single rule underneath everything else: in Canada, lawful gambling runs through the provinces, and the authority to do so comes from one federal statute.

Disclaimer and Responsible Gambling

This article is general information about Canadian law and is not legal advice. Laws, section numbers and regulations can change; always confirm the current wording on the federal Justice Laws website or consult a qualified lawyer before relying on it for any decision. Casinos of Canada is an independent, information-only reference site — we do not operate gambling, hold accounts or process payouts, and we publish no affiliate or paid placements, as set out in our editorial policy.

Gambling involves real financial risk, and no strategy, system or demo play changes the odds set by the operator. The minimum legal gambling age in Canada is 19 in most provinces and territories and 18 in Alberta, Manitoba and Quebec. If gambling is affecting you or someone you know, free, confidential help is available across the country — see our responsible gambling in Canada hub for provincial help lines, self-exclusion programs and the warning signs to watch for.

Frequently Asked Questions (FAQ)

Is gambling legal under federal law in Canada?

Not on its own. The federal Criminal Code treats most gambling as an offence and then allows specific exceptions. The main one lets a provincial government conduct, manage or license gambling within its borders, so lawful gambling always flows from provincial authority rather than a federal permission.

What is Section 207 of the Criminal Code?

Section 207 is the provision that makes provincially run gambling legal. It lists who may lawfully conduct and manage a “lottery scheme” despite the gaming offences elsewhere in the Code — chiefly provincial governments, and also licensed charities, fair boards and small-scale operators under provincial licences.

Why can provinces run casinos but private companies cannot?

Because the Criminal Code grants the exception to the provinces. A province may conduct and manage gaming itself, and may license certain operators, but for computer, video-device and slot-machine gaming it must run the scheme rather than hand it to a private operator. Unlicensed private gambling for profit remains an offence.

When did the Criminal Code allow provinces to control gambling?

The shift happened in two stages. Amendments in 1969 first allowed federal and provincial governments to run lottery schemes, and amendments in December 1985 removed federal authority, leaving the provinces and territories with exclusive control to conduct and manage lottery schemes.

Is single-event sports betting legal in Canada now?

Yes, where a province offers it. Bill C-218 repealed the restriction on single-event betting, taking effect on 27 August 2021. Provinces and territories can now conduct and manage single-game sports betting, though horse racing stays under the separate federal pari-mutuel system.