Expanding Into Canada: What You Need to Know

Canada’s regulated online gaming market has changed significantly in recent years. Ontario was the first province to launch a regulated iGaming market, creating a new framework for operators entering the country.

For international gaming businesses, entering Canada requires more than understanding the size of the market. Businesses also need to understand provincial regulations, consumer expectations, advertising rules, and payment requirements.

Here’s what businesses need to know about expanding into Canada.

Understanding Canada’s Gaming Market

Canada’s gaming market has developed differently from the United States.

Before regulated online gaming expanded, Canadian consumers already had access to offshore and grey-market gaming sites. The move toward regulation created a framework focused on consumer protection, responsible gambling, and market oversight.

Bill C-218 and Single-Event Sports Betting

Bill C-218 was an important milestone for Canada’s gaming industry.

The legislation allowed provinces and territories to offer single-event sports betting. Before the change, consumers generally had to place parlay-style bets through provincial sportsbooks.

The legislation gave provinces more flexibility in how they structured their gaming markets.

Ontario’s Regulated Market

Ontario launched its regulated iGaming market in April 2022.

The province created a framework that allows eligible private operators to offer regulated online gaming through agreements with iGaming Ontario.

The Alcohol and Gaming Commission of Ontario (AGCO) is responsible for regulatory oversight, while iGaming Ontario manages commercial relationships with private-sector operators.

Ontario’s approach also became an important reference point in discussions about online gaming regulation across Canada.

What Makes the Canadian Market Different?

Canada is not a single regulated gaming market.

Gaming regulation is largely managed at the provincial level. This means businesses entering Canada need to understand the requirements that apply in each province or territory where they plan to operate.

Key considerations include:

• Provincial registration and licensing requirements
• Consumer protection standards
• Responsible gambling requirements
• Advertising and marketing rules
• Age and location restrictions
• Data and privacy requirements
• Payment and financial controls

Understanding these differences is an important part of planning a Canadian market entry.

Choosing Payment Methods for the Canadian Market

Payment methods are another important consideration for businesses entering Canada.

Canadian consumers are familiar with local bank-based payment methods, including Interac e-Transfer and other account-based payment options. Offering familiar methods can help businesses provide a payment experience that fits local expectations.

Paramount Commerce is Canada's leading payment provider that offers bank-based payment solutions for iGaming and sports betting operators in Canada. Its payment offering includes Interac e-Transfer, Instant Bank Transfer, and Online Bank Verification.

When evaluating payment providers for the Canadian market, businesses can consider:

• Local payment methods: Does the provider support payment methods familiar to Canadian consumers?
• Bank coverage: Can it connect with banks across Canada?
• Payment speed: How quickly can transactions be processed?
• Risk controls: What tools are available for fraud detection and transaction monitoring?
• Verification: Can the provider support account and identity verification requirements?
• Reporting: Does it provide the tools businesses need for reconciliation and transaction reporting?
• Regulatory requirements: Does the payment setup support the applicable Canadian and provincial requirements?

Payment infrastructure can differ significantly between countries. A payment setup that works in another market may not provide the same experience in Canada.

Understanding local payment preferences and requirements should therefore be part of any Canadian market-entry plan.

Protecting Consumers

Consumer protection is a central part of Ontario’s regulated gaming framework.

iGaming Ontario identifies several key regulatory objectives. These include responsible gambling, game integrity, crime prevention, preventing access by minors, and protecting personal information.

Responsible Gambling

Operators are expected to provide tools and support that help consumers make informed decisions about gambling.

Responsible gambling measures can include self-exclusion programs and other tools designed to help consumers manage their activity.

Game Integrity

Regulation also focuses on ensuring games operate as intended.

Operators must meet requirements designed to support fair and transparent gaming experiences.

Preventing Financial Crime

The regulated framework also aims to prevent criminal activity, including money laundering.

Operators need appropriate controls to identify and manage financial and compliance risks.

Preventing Access by Minors

Age restrictions are another important part of the regulatory framework.

Operators must take steps to prevent underage individuals from accessing regulated gaming services.

Protecting Personal Information

Businesses operating in the Canadian market also need to consider how consumer information is collected, stored, and protected.

Privacy and data security are important parts of the broader consumer-protection framework.

Advertising and Marketing Requirements

Advertising is another area businesses need to understand before entering Ontario.

The AGCO’s Registrar’s Standards for Internet Gaming include requirements related to advertising and marketing.

The rules are designed to support responsible advertising and protect consumers.

Protect Consumers

Advertising should not target people who are underage or otherwise ineligible to participate.

Operators must also consider restrictions involving individuals who have self-excluded themselves from gambling.

Keep Advertising Truthful

Gaming advertisements must not mislead consumers.

Promotions should provide clear information and should not encourage excessive gambling or suggest that gambling guarantees financial success.

Understand Restrictions on Inducements

Ontario also has rules around the advertising of bonuses, credits, and other inducements.

Businesses need to understand where these offers can be promoted and what restrictions apply.

Working With iGaming Ontario

Businesses that want to operate in Ontario need to meet the requirements established by both the AGCO and iGaming Ontario.

This includes meeting applicable regulatory, operational, and marketing requirements.

Some key areas include:

• Registration and regulatory approval
• Responsible gambling
• Advertising and marketing
• Consumer protection
• Location requirements
• Direct marketing

Understanding these requirements early can help businesses plan their market entry more effectively.

What Businesses Should Consider Before Entering Canada

Canada offers opportunities for businesses looking to enter a regulated gaming market, but the regulatory structure requires careful planning.

Before entering the market, businesses should consider:

1. Regulation: Understand the requirements that apply to the province where you plan to operate.
2. Consumer protection: Build responsible gambling and consumer-protection measures into the customer experience.
3. Advertising: Review provincial advertising and marketing requirements before launching campaigns.
4. Payments: Make sure the payment experience supports familiar Canadian payment methods and local requirements.
5. Risk management: Establish appropriate controls for fraud, financial crime, and account security.
6. Privacy: Understand the requirements for handling Canadian consumer information.
7. Market differences: Do not assume that a strategy used in another country will work the same way in Canada.

Looking Ahead

Canada’s regulated gaming market continues to evolve.

Ontario’s launch created a new model for private-sector participation in regulated online gaming. It also highlighted the importance of consumer protection, responsible gambling, advertising standards, and local market requirements.

For businesses considering expansion, understanding these requirements is an important first step.

The Canadian market is not simply an extension of the U.S. market. Provincial regulation, consumer expectations, payment preferences, and compliance requirements all need to be considered as part of a Canadian market strategy.

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