December 21, 2025

Exploring the Latest on Canada’s Cryptocurrency Gambling Laws in 2025

As cryptocurrency continues to redefine the digital economy, the online gambling industry in Canada is both facing new regulatory challenges and opportunities. The adoption of digital assets has prompted Canadian consumers to consider crypto-based wagering, yet the applicable regulations governing such activity remain complex. This article will consider how provincial regulators – Ontario, Québec, and British Columbia – are dealing with the use of cryptocurrency in licensed gaming, the existing legal parameters for operators, and how forthcoming federal regulations and anti-money laundering (AML) regulations may impact crypto casinos across the country. These matters will be important for operators, players, and policymakers striving to understand the evolving ecosystem of Canadian Casinos.

Understanding Canada’s Dual Regulatory Framework

Canada’s gambling regulations are unique in that they operate under a dual framework, combining provincial authority with federal oversight.

Provincial Control

Gambling in Canada is mainly governed at the provincial level by certain groups that each run the operation in their jurisdiction, including a licensing model for online gambling and what payment methods are legal. Some of the provincial regulators include the following:

Ontario: The Alcohol and Gaming Commission of Ontario (AGCO) is responsible for the regulation of gaming in Ontario, allowing online operators to operate in compliance with provincial regulations through iGaming Ontario.
Québec: Loto Québec regulates online gambling through EspaceJeux and focuses on protection of the player and preventing gambling related harms.
British Columbia: The British Columbia Lottery Corporation (BCLC) operates the PlayNow platform in British Columbia, regulating online gambling and other related methods of gambling while providing responsible gambling guidelines.

Each of the regulatory bodies describe the standards for online gambling which mandate that operators must offer the fairest play available, comply with AML/KYC standards equivalent to other financial institutions, and provide a secure online gambling environment for Canadians playing online. In each of their provinces, if any cryptocurrency were to be adopted as a method of payment on a regulated site, it would have to be agreed upon by the regulator in advance of seeing the crypto payment method to market. As a result, a Canadian who wishes to gamble online is only free to do so because each province has codified the practice in approval of an online gambling regulatory framework.

Federal Oversight

While provinces regulate gambling, cryptocurrency falls under federal jurisdiction as property rather than legal tender. The Canada Revenue Agency (CRA) classifies crypto holdings as taxable assets, requiring players and operators to report deposits, withdrawals, and conversions. Meanwhile, the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) enforces AML and anti-terrorist financing (ATF) regulations, monitoring transactions for suspicious activity and ensuring compliance with federal laws.

Operators must navigate both layers of regulation to remain compliant, especially when handling digital assets. Provincial rules dictate whether crypto can be accepted for gaming, while federal oversight ensures that all financial activity — including crypto — adheres to anti-fraud and taxation standards.

Where Crypto Gambling Stands in 2025

Provincial Acceptance

As of 2025, major provincial online casinos do not allow direct cryptocurrency deposits or wagers. Each province maintains a cautious stance on digital currencies to protect players and ensure regulatory compliance.

Ontario’s Registrar Standards for Internet Gaming explicitly exclude cryptocurrency as a deposit method.
Loto Québec and BCLC similarly do not permit crypto payments on their platforms.

These restrictions are primarily driven by the volatility of digital assets and the need to maintain secure, regulated financial channels. Consequently, players looking to use cryptocurrency within licensed Canadian casinos cannot currently do so without conversion to fiat currency.

Offshore Cryptocurrencies Casinos

While there are restrictions imposed by the province, some individuals in Canada participate in offshore accounts accepting cryptocurrencies. Gamblers don’t commit an illegal act by gambling on these platforms, but the platforms are exempt from provincial regulation and concerns arise about compliance and protecting consumers. Players are exposed to risks, such as the potential for going bilk, not having responsible gambling protections, and little recourse for disputes.

Tax Obligations

All crypto winnings in Canada are deemed property for tax purposes and are subject to reporting to the CRA. This includes all deposits, withdrawals, and conversions. Even if the platforms are considered offshore, players remain legally responsible for reporting crypto winnings and for paying taxes they own on the winnings. Non-compliance could lead to fines, penalties, and potentially criminal action—all the more reason to understand federal obligations in addition to the provincial issue.

Key Compliance Considerations for Online Casino Operators

Operators interested in future crypto integration must consider several compliance factors:

Licensing Adherence: Operators must follow provincial standards. Cryptocurrency product offerings are prohibited unless such a product has been expressly approved by the applicable provincial regulators. If not approved, the operator will face possible suspension or revocation of its gaming license.
Payment Rails: Any deposits by a player in cryptocurrency and/or wallets must involve the operator, as a custodian, converting the cryptocurrency to fiat currency. The deposited funds must be monitored closely, which may include a number of methods an imaginable to ensure the operator’s compliance with the relevant anti-money laundering (AML) and know-your-customer (KYC) obligations.
AML/KYC Obligations: Operators are required to verify players’ identities, actively monitor for suspicious activity in player deposits of funds, and report to authorities, considering full compliance with any federal authorities including FINTRAC and the Canada Revenue Authority (CRA).
Consumer Protection: Policies must consider crypto-fund value volatility, industry pushback to resolution for disputes, and full transparency of procedure. If policy holders do it correctly, their protective measures for the player should build confidence in the system while considering responsible gaming.

By putting these recommendations into practice, licensed Crypto Casinos can remain compliant with best practices while preparing for future approval of integrated cryptocurrency to pay for online casino games.

Emerging Trends and Future Policy Shifts

Canada’s landscape is progressively changing to embrace cryptocurrency while emphasizing player protection and compliance. Continuing and anticipated changes include the following:

Regulatory Testing: Provinces may test custodial crypto-to-fiat conversion models with licensed operations, allowing careful experimentation in regulated systems.
Federal Coordination: FINTRAC and other federal agencies could promote reporting and anti-money laundering (AML) practices that apply specifically to crypto gambling, clarifying regulations for operators.
Harmonization Possibilities: Provincial authors could regulate in a way that allows cryptocurrency to be used safely and effectively, especially if demand continues to grow or if increased offshore activity lures Canadian players away from licensed sites.
Tax Guidance: The CRA may release updated information on crypto gambling gains, staking, and decentralized finance (DeFi) casinos interactions for the tax implications of operators and players.

Operators that address these enhancements will be in a good position to capitalize on expected crypto adoption in regulated Canadian Casios.

Strategic Takeaways for the Canadian Casino Industry

For operators in Canada, the changing landscape of crypto gambling suggests that some planning and risk evaluation need to take place:

Pay Attention to Any Provincial Updates: Review the published guidance of AGCO, Loto Québec, and BCLC at least once a week for any updated information regarding the acceptance of cryptocurrency.
Consider Building Infrastructure: Custodianships and AML/KYC processes and/or the operational capability to store funds will most certainly be essential for an eventual adoption of cryptocurrency.
Consider the Risks: Players may perceive offshore crypto playing sites as favorable, but any promotion of these gambling options or their use in your operations, presents uncertain legal, financial, and reputational risks.
Operational Consideration and Readiness: Review your own terms & conditions, responsible gaming policies, tax reporting, etc. to ensure you are have the ability to facilitate and manage cryptocurrency.

Following this guidance will position operators for adoption, as Canada Casinos has no regulations preventing the future adoption of cryptocurrency.

What Canada’s Crypto Gambling Future Means for Operators

Moving forward, the introduction of cryptocurrency to online gambling in Canada will likely be a slow process:

Regulatory Crypto Roadmap: Expect to see custodial or convert-to-fiat options offered before we see any other options. I suspect players may not be able to wager directly with crypto until such a time the provinces establish a formal framework.
Priority Compliance: Gambling operators are duty bound to focus on AML/KYC, licensing from the provinces and consumer protection before making any crypto options available.
Demand = Regulation: Changes to the regulations that govern gambling in Canada may come as a result of players who want to use cryptocurrency. In time, this will set the stage for licensed Crypto Casinos to offer a range of cryptocurrency options.
Be Vigilant: Monitor Federal/Provincial guidance continuously. Operators who are willing to innovate and offer options as regulations evolve, remain compliant with new regulations as they are introduced, thereby avoiding unnecessary legal risk while accessing the demand from consumers.

It is important that operators are ready and operational as there are consumer demands across the regulatory frameworks. Adhering to this guidance is not just the right thing to do from a legal standpoint; it is also in the best interest of the operator in the long run. Having a responsible gambling model while you’re positioning to engage with a crypto market subsequently keeps trust in the community and protects consumers while meeting market demand in the Canadian marketplace.