As noted earlier, the Code makes it illegal to offer gambling services in Canada. Before the advent of the Internet, criminal gambling operations took the form of illegal bookmakers or clandestine poker operations. They had no defences because they clearly performed their services in the province in question. The situation became much more opaque when it was possible to play casino and poker games and place bets on football matches on your own PC. For example, if a business that is physically located in Ontario (i.e., has one or more offices, mailing address, employees, officers and directors in Ontario) operates a website that offers gambling betting, it would clearly be involved in an Ontario criminal enterprise. The situation becomes much less clear when the companies that provide online gaming products and services to Canadian residents are not themselves based in Ontario and in fact have absolutely no connection to Canada, except as the place of residence of a number of their players (referred to here as „foreign operators“). The question then is whether a foreign operator offers gambling in Canada if it has no activity in or in connection with the country (other than the location of some of its players). In many countries, including the United States, personal lotteries are banned. Only the government, not individuals or private companies, is legally allowed to run lotteries. Currently, raffles with various restrictions are legal in 47 of the 50 states. The states that completely ban raffles are Alabama, Hawaii and Utah. To my delight, this guide has proven its weight in gold.
Therefore, I absolutely intend to make several additional purchases of various comparative legal guides from your company during the year. John F. Martin – Senior Counsel, GE Energy Global Risk & Receivables COE To add to the confusion, Canadian police must serve a person (or a company, its office or management) to prosecute. Given the complete lack of connection to Canada, Canadian police were unable to take the first steps necessary to charge an offshore operator and test their legal defences. In short, the impasse. Taking into account all of the above defensive factors and measures, many foreign operators have been actively accepting players from Canada for over a decade. To date, none of them have been charged with a crime in Canada. None of the other provinces have indicated that they will follow Ontario`s lead anytime soon. It is likely that they will sit down and look at what kind of revenue and market share Ontario can get from the grey market before deciding to follow Ontario`s lead.
In fact, it has been suggested that some provincial attorneys general take the position that Ontario`s structure is illegal and constitutes criminal activity on the part of the Ontario government. It remains to be seen whether other provinces will openly question the legality of the new structure. The information in this article is informational only. This is not legal advice and should not be understood as such. You should not rely on this information or take or not take any action. Professional legal advice should be sought promptly. Due to the uncertainties of the Code, OLG must be the legitimate operator of all casinos in the province. The operators of Ontario`s land-based gaming establishments (we will only talk about the casinos below) therefore technically do not offer gaming services to anyone other than the OLG, although the public has no way of verifying this.
Operators are required to enter into a lengthy Casino Operating Services Agreement („SISA“) with the OLG, which is very restrictive, despite the fact that many Ontario casinos operate well-known U.S. casino brands. As OLG suppliers, operators interact with customers in their casinos as OLG „agents“. In addition, as noted above, all businesses that provide services to an Ontario casino must also be registered and regulated by the AGCO. Canadian lotteries have assured that they will continue to work with each other and with federal agencies while monitoring black market activities. If you have any questions about whether your sweepstakes is legal or whether you have followed all the necessary steps, it is always advisable to consult a lawyer who is familiar with the subject. Making a mistake can be a costly and even criminal offense. Given the complexity of platforms and games offered by foreign operators, the presence of these operators in the Canadian market is putting ongoing pressure on the success of online gambling offered by lottery corporations in Canada. This has resulted in more or less annual calls from lottery companies to their respective governments and law enforcement agencies to do something about what they consider to be illegal activities by foreign operators in Canada.
At the end of the day, there is not much that can be done to convince the federal government to change the code to directly address online gambling from outside of Canada. The Canadian Criminal Code (the Code) defines the types of gambling activities that are illegal in Canada, and provinces are responsible for operating, licensing and regulating legal forms of gambling. If you`re invited to buy a sweepstakes or online bingo ticket, see who`s hosting it. If it is an individual, it is probably illegal. Raffles and legal bingos must be organized and authorized by a religious or non-profit group. In summary, legal gambling in Canada is currently offered by government monopolies. To the extent that private companies are involved, they are (at least structurally) only suppliers of goods and services to the lottery company concerned. Most people participated in raffles for a good cause and supported a local church, school or sports team. Raffles are great fundraisers, but they also have legal restrictions. That said, if you want to run one yourself, you need to know how to do it properly.
Here are some tips on how to organize a legal raffle that won`t put you or your organization in hot water. But remember, laws vary by location and change quickly. Make sure you get up-to-date legal advice for your situation before starting a sweepstakes. „They use misleading advertising to dominate the marketplace and provide countless opportunities for Canadians to engage in illegal gambling, often unknowingly.“ As you know from the article The difference between sweepstakes and lotteries, a lottery must contain these three elements. Remove just one of them – consideration, for example – and you will have a legal draw instead of a prohibited lottery. The British Columbia Lottery Corporation, the Alberta Alcohol and Cannabis Commission, the Manitoba Liquor and Lotteries Corporation, Loto-Québec and Atlantic Lottery have joined forces to force the government to take action against those who operate illegally in their respective territories. The lotteries – collectively known as the Provincial Lottery Corporation – have raised concerns about consumers and the good causes their own operations help fund, warning that overseas gambling operators advertise nationally, creating a „blur“ between illegal operators and real provincial lotteries.
