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Casino

How Online Casinos Are Being Legalized In Canada 

by Lana Vrzic February 18, 2022
by Lana Vrzic February 18, 2022

Is online gambling legal in Canada? This is a question that has been brought up in the North American country over and over again. The laws governing online casino platforms in Canada is quite different from other countries.

Yes, online gambling is legal in Canada. However, it is completely illegal for companies to run online casinos in Canada. While accessing an online casino that is operated offshore is not completely legal. If you want to gamble online in a legal way, the Canadian online casinos like CasinoScout.ca must be located outside of Canada, and their servers have to be located in Kahnawake which is in Canadian territory. Canadian law does not prohibit online gambling, they just have to be licensed or owned by a provincial government if the company is within Canadian borders.

With the law claiming that no Canadian players are to be found in poker rooms and gambling houses, yet betting and casino games are considered as one of the most popular forms of entertainment in the country, and Canadians are known to love all things gambling-related as over 75% of the country’s population is involved in one form of gambling or another, and the North American country is also considered as a haven for gamblers.

Contents

Gambling Laws In Canada

Source: proyectorampa.net

Any form of gambling was illegal in Canada, but slowly the laws began to ease a bit as raffles, bingo, and slot machines were legalized for charity events and horse races. And in 1985, gambling was officially legalized by the Canadian government, and new gambling laws were formed. However, these laws were left for the provincial and territorial governments to handle as they were tasked with the duty to monitor all gambling-related affairs.

Kahnawake Gaming Commission

Source: bahisradari.com

The Kahnawake Gaming Commission is a regulatory body in Canada established in 1996 after Kahnawake Gaming Law was adopted. It is the regulatory body in charge of both land-based (in Mohawk Territory of Kahnawake) and online gambling sites. It regulates and licenses online casinos and sports betting sites that can be accessed in the country.

The Kahnawake Gaming Commission is responsible for regulating all gaming-related activities that are operated within and from the Mohawk Territory of Kahnawake. Ever since its establishment, the gaming commission has been able to license over 100 online casino operators with over 250 gambling websites in the country. In 2016, the commission stopped issuing gaming licenses to operators who accepts and registers players from the USA.

While online casinos located offshore are not required to have a license from the Kahnawake Gaming Commission, the license provided by the commission ensures that an online casino has been tested and trustworthy enough for Canadians to play from.

Before an online casino can be issued a license from the Kahnawake commission, there are some requirements that they need to meet before they can be considered legal in Canada. Listed below are some of them.

Possessing High-Quality Software

Source: springboard.com

This is one of the most important features an online casino should possess before it can be considered as a legitimate platform for gambling in any country. It is no surprise that it was made one of the requirements for being legalized in Canada. High-quality software will ensure that the players will have seamless access to the various games in their libraries with ease. The casino games also have to be developed in high quality. Nobody will want to play from an online casino with low-quality games and low-quality services.

Founders & Shareholders Information

This is one of the things that will first be looked at. Establishing an online casino is not an easy task that can be carried out by one or two people. Developing an online casino platform requires investment which is where investors come in. Most online casinos always have more than two founders as well as shareholders, and they are always attached to some big companies. To ensure that a casino is legitimate, all information about the creation and establishment of the platform will be provided to Kahnawake Gaming Commission.

An Office In Kahnawake

Source: globalnews.ca

Next on the list of requirements is registering an office within Kahnawake while also providing the necessary documents that will verify its existence in the Mohawk Territory. This is also to ensure the legitimacy of the online casino platform as well as a place from which taxes can be issued, and if there are any complaints and enquiries that need to be made. For an online casino to be legalised in Canada, an office needs to be established in Canada.

Rules & Regulations For Games And Payoffs

Rules and regulations need to be established for hosting games and the payoffs that will eventually be made once the online casino is legalized in the country. These rules will let the players understand how games will be held and played, it will also give them an insight into what they should avoid doing.

Players will become eventual winners and might need to withdraw their cash, this is where the rules and regulations for payoffs come in. Some online casino platforms have rules that won’t allow the withdrawal of winnings below $100 while some allow. Rules and regulations like these need to be provided to the players before participating in any online casino game as it could become a problem if it wasn’t and a player wishes to withdraw some amount from the account. Therefore, Kahnawake Gaming Commission emphasizes this rule.

Passing An Independent Audit

Source: professionalcasino.co.uk

All top online casino platforms had to pass an independent audit that was carried out by one reputable gambling authority or multiple. This is an important requirement that needs to be passed by all online casinos that hope to gain a reputation not only in Canada but also across the world. It should come as no surprise that it is a requirement from Kahnawake Gaming Commission.

In this independent, almost everything in the online casino platform will be tested by the commission as they seek to give the best to their residents. The fairness of the games, the user experience, the navigation, security and many more will be tested in this independent audit. If a casino didn’t pass this audit, it will not be legalized in Canada.

Information About The Payment Methods

Source: tap2pay.me

All online casinos always have multiple payment methods available for their players who often have a preference when it comes to digital payments. What Kahnawake Gaming Commission requires from these online casinos is detailed information about each payment method being accepted on their platforms. This will help the players understand the best way to go about depositing and withdrawing their money. A player might wish to try a different payment method from their favourite. This is where the detailed information will prove to be pivotal.

Aside from all these, guaranteeing large sums of withdrawal, guaranteeing players’ personal and financial information, and limiting gambling access to people gambling addiction are the other requirements that online casinos need to have before they can be legalized to operate in Canada. If any of the requirements are not reached, Kahnawake Gaming Commission has the right to reject a license and to also revoke an existing one.

CanadacasinoGambling Lawslowonline casino
Lana Vrzic

Lana is a dedicated writer and Editor in Chief of TheFrisky, who has been with us from the beginning. Her diverse range of interests, from technology and business to health and wellness, allows her to bring a fresh perspective to each topic she covers.

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