How Online Gambling Laws in the United States are Different from Canada


Even though the United States and Canada are neighboring countries, there are many differences between these two nations. In particular, this article is going to take a deeper dive into the differences in legislation within the two countries as it pertains to gambling laws. Granted, there are also a lot of similarities with the gambling regulations between the United States and Canada. However, there are also a number of differences that make the experience in each nation unique. We will cover all of those differences, including the online gambling realm within this article. 


With the prominence of American and Canadian gambling sites sprouting up these days, it’s becoming increasingly difficult for governments to ignore the need for proper regulation and legislation when it comes to these industries. The first thing that you have to know is that both countries tend to take a very liberal approach to gambling. Games like roulette, poker, and blackjack are readily available and legal to play. In Canada, any winnings that are acquired through legitimate gambling activities are not taxable. However, in the United States, the government is entitled to a 25% tax.


When it comes to online gambling, both the United States and Canada also offer relatively easy access to its residents to access online gambling sites. In Canada, there aren’t really any laws that strictly prohibit online gambling and that’s why it falls under a grey area. The government itself doesn’t grant licenses to online casino operators. That’s why there aren’t any online casino platforms that are based in Canada. However, there is no law that bars Canadian gamblers from accessing online casino platforms that are based overseas. There is absolutely no shortage of reputable online casinos that are based overseas and that’s why it’s so easy and convenient for any Canadian to participate in online gambling.


In the United States, the assistant Attorney General interpreted that individual states had the rightful mandate to legalize online casinos in their specific jurisdictions. What the interpretation also concluded was that states could not mandate the legalization of sportsbooks. So, in essence, states were given the power to allow or disallow access to online gambling portals. However, these days, American states now have the absolute freedom to access these online gambling sites. Aside from that, American states have the power to regulate online gambling operations and use to a great degree.


One good example is the state of New Jersey. It is a popular gambling state because of the iconic Atlantic City and slotxo. The state allows for the operation of both casinos and betting companies. Aside from that, it grants licenses to operators to operate freely within the state. This is why so many iGaming companies within the United States operate out of New Jersey. While New Jersey is a good example, there are many other states that permit the operation of land-based and online gambling establishments. These states include Colorado, Michigan, Indiana, West Virginia, and Pennsylvania.


For the state of Nevada, which is known for the gambling havens of Reno and Las Vegas, sports betting is regulated, but online casinos are disallowed. It’s also the same case in the state of Oregon. When it comes to the other states in America, it varies from state to state. Some states permit only specific games like poker and don’t allow for the playing of lost machines.


When it comes to the game availability for residents, Canada has access to practically any game that’s being offered on offshore platforms. Again, there is no specific legislation that mandates what kinds of games Canadians have access to. This means that Canadians are free to play whatever games they want that’s being produced by the world’s top developers and platforms. However, in the United States, they are limited to only a handful of developers that have a license to operate within the country. Major names like Microgaming, Quickspin, and Playtech produce games that aren’t available in American casinos.


At the end of the day, there are many similarities between the United States and Canada. However, it seems like Canada is taking a more liberal approach to regulating gambling among its population. It’s a lot easier and more convenient for Canucks to gain access to the latest and greatest online casino games because of their (lack of) gambling legislation. 

-In Collaboration with IndexCA Media

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