What Happened

Gambling in Canada is governed by a somewhat counterintuitive legal structure: the federal Criminal Code makes gambling generally illegal, then carves out specific exceptions. Section 207 is the primary exception mechanism for provincial gambling activities.

Why It Matters

Without understanding Section 207, no analysis of Canadian gambling law is complete. Every provincial licensing framework, Crown corporation mandate, and competitive market structure derives its legal legitimacy from this federal provision.

The basic structure: The Criminal Code prohibits operating a gambling establishment, keeping a common gaming house, and related activities. Section 207 creates exceptions that permit the following:

  1. The government of a province or territory may conduct and manage a lottery scheme, either directly or through a licensee
  2. A charitable or religious organization may, under licence, conduct lotteries
  3. Licensed agricultural fairs may conduct certain activities
  4. Specific other limited categories

The phrase “conduct and manage” has been interpreted by courts as requiring meaningful governmental control — not merely passive licensing of fully private operations. This interpretation is why Ontario’s iGaming model requires iGaming Ontario (a Crown subsidiary) to formally conduct and manage the lottery scheme, with private operators acting under authorization.

2021 Amendment: Bill C-218, passed in 2021, amended Section 207 to remove the prohibition on single-event sports betting — previously, only parlay betting was permitted. This change opened the door for every province to offer single-event wagering, transforming sports betting markets nationally.

What Section 207 does not address: The section does not specify product types in detail, responsible gambling requirements, consumer protection standards, or taxation rates. These are left to provincial regulatory frameworks.

What’s Next

Discussions about further Criminal Code amendments surface periodically. Proposals have included provisions addressing online poker specifically, offshore operator enforcement mechanisms, and the possibility of a federal-level sports integrity framework. Any such amendment would require federal legislative action and could materially reshape provincial regulatory authority.

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