
Crypto casino play and Canadian tax: the win is a windfall, the coins are not
Paying a casino in bitcoin feels like spending money. For the CRA it is a disposition of property, with a gain or loss measured in Canadian dollars

For decades a legal sports bet in Canada had to combine several games. A private member's bill changed one paragraph of the Criminal Code in 2021, provinces switched on single-game wagering within days, and the casino apps most Canadians use changed with it.
Canadians have been able to bet on sport legally for a long time, but only in a particular form. Until August 2021, a provincial sports lottery ticket had to combine the outcomes of several games, the parlay format familiar from PRO-LINE and Sport Select tickets. A single wager on one hockey game was not something a province could offer.
That changed with a short federal bill. This article sets out what the old rule was, how Bill C-218 moved through Parliament, what each province did in the first weeks, and what the change meant for people who mainly play online casino games. Betting is restricted to adults of legal age in each province; see our guide to the gambling age by province.
The Criminal Code prohibits gambling generally and then sets out exceptions. The main exception is the "lottery scheme" conducted and managed by a province or territory. The Department of Justice explains that provinces could run a wide range of lottery schemes, including betting on the outcome of more than one sporting event, while pari-mutuel betting on live horse racing was regulated by the Canadian Pari-Mutuel Agency.
The limiting words sat in paragraph 207(4)(b) of the Criminal Code, which kept single-event sports betting outside the provincial lottery power. In practice that meant provincial products could sell parlays but not single-game wagers. As an Ontario MP put it when the change was announced, Canadians had long been able to bet legally on sports through parlays.
A parlay pays only if every selection wins. Each extra leg makes the ticket harder to win, and the operator's margin is built into every leg, so the combined ticket carries more of it than a single bet would. For a player who simply wanted to back one team in one game, the legal provincial product forced a more expensive and less likely bet. Single-game bets on sites outside the provincial systems filled that gap for some players, without provincial oversight of age checks, limits or complaints.
The parlay rule also shaped what provincial lottery corporations could sell online. Their sports products sat alongside lottery tickets rather than alongside casino games, and the betting menus were built around combined tickets. Single-event betting allowed the same platforms to offer the type of market that bettors were already finding elsewhere, under provincial rules on age, location and responsible gambling.
The change came through a private member's bill, sponsored by Kevin Waugh, MP for Saskatoon–Grasswood, with the short title Safe and Regulated Sports Betting Act. The government had introduced its own bill, C-13, on 26 November 2020, but C-218 overtook it; C-13 ended when Parliament was dissolved on 15 August 2021.
| Date | Step |
|---|---|
| 23 September 2020 | C-218 reinstated in the 2nd session of the 43rd Parliament |
| 22 April 2021 | Third reading passed in the House of Commons |
| 22 June 2021 | Third reading passed in the Senate, without amendment |
| 29 June 2021 | Royal assent; Statutes of Canada 2021, chapter 20 |
| 11 August 2021 | Order in Council P.C. 2021-874 fixes the coming-into-force date |
| 12 August 2021 | Department of Justice announces the date |
| 27 August 2021 | Amendments come into force (SI/2021-56) |
Royal assent alone did not switch anything on. The Minister of Justice's statement at the time noted that the bill would come into force on a day fixed by the Governor in Council, which gave provinces a few weeks to prepare their systems.
The bill amended paragraph 207(4)(b) so that provinces and territories may conduct and manage single-event betting on any sporting event except horse racing. The Department of Justice stressed three points:
Nothing in the bill created private sports betting licences. The power remains a provincial one under section 207. What a province does with it, running a monopoly site, contracting a platform, or registering private operators, is a provincial choice.
Horse racing sits outside the change because it already had its own federal system. Pari-mutuel wagering on live races, where bets go into a pool and the payout depends on the size of the pool, is supervised by the Canadian Pari-Mutuel Agency. Bill C-218 left that arrangement untouched, so a provincial sportsbook cannot take fixed-odds single bets on horse races in the way it takes them on hockey or football.
Provinces moved at different speeds. The table below combines reporting from launch week with later official confirmation where available.
| Province | Operator and product | Status around 27 August 2021 |
|---|---|---|
| Ontario | OLG, new PROLINE+ digital sportsbook | Announced for 27 August |
| Quebec | Loto-Québec, Mise-o-jeu | Single bets online and at retailers from 27 August |
| British Columbia | BCLC, PlayNow.com | Single-game wagers from 27 August |
| Manitoba | Manitoba Liquor & Lotteries, PlayNow (BCLC platform) | Enabled 27 August 2021, confirmed by MBLL |
| New Brunswick, Newfoundland and Labrador, PEI | Atlantic Lottery | Single-event betting online and at retail announced as live |
| Nova Scotia | Atlantic Lottery | Not named in the launch update |
| Alberta | AGLC, PlayAlberta.ca | Integration announced for later that month |
| Saskatchewan | SaskGaming / Western Canada Lottery | Mechanisms not yet finalised |
| Western Canada Lottery members | Sport Select retail | Single-event wagering expected later in the fall |
Ontario then went further than any other province. On 4 April 2022 its igaming market opened to private operators registered with the AGCO and holding an operating agreement with iGaming Ontario, making it the first province to run a private market for online betting. Our explainer on the Ontario igaming market covers how that model works, and the provincial sites comparison shows what the lottery corporations offer today.
On paper, C-218 is a sports bill. In practice it reshaped the online casino experience for many Canadians, because the same provincial and Ontario-licensed platforms run casino games and sportsbooks under one account.
On sites such as PlayNow, one account and one balance cover slots, live dealer tables and sports wagers. The Manitoba Liquor & Lotteries backgrounder lists casino games, live casino, poker, bingo, lottery and sports wagering (singles and parlay) on the same platform. That convenience also means deposit limits and loss limits you set apply across everything, which is worth checking in the account settings.
Once sportsbooks and casinos share an account, some promotions start tying the two together, for example a casino bonus unlocked by placing sports bets. Read which activity counts toward any wagering requirement. Our guide to wagering requirement maths shows how to price an offer in C$.
Single-game markets settle quickly, often within hours, and in-game betting settles faster still. Combined with casino play in the same wallet, that makes it easier to recycle winnings without noticing total turnover. Provincial sites offer deposit limits, time reminders and self-exclusion; our guide to self-exclusion by province lists the options.
The bill did not alter how gambling winnings are treated for income tax; see our article on gambling winnings and tax in Canada. The minimum age for betting follows the same provincial rule as other gambling products.
Single-event sports betting is lawful in Canada when it is conducted and managed by a province or territory, directly or through the structures it sets up, such as Ontario's registered private operators. Betting on horse racing remains a federal matter. The practical question for a player is therefore provincial: which platforms your province operates or authorises, and what age and location checks they apply.
A one-paragraph change to section 207 ended the parlay-only rule. Bill C-218 received royal assent on 29 June 2021 and took effect on 27 August 2021, with provinces deciding how to use the new power and horse racing left under federal supervision. For casino players, the lasting effect is that sports and casino now often share one account, one balance and one set of limits.
The amendments in Bill C-218 came into force on 27 August 2021, under an Order in Council made on 11 August 2021. Royal assent had been given on 29 June 2021.
No. The bill excluded horse racing, and betting on races continues to be regulated by the federal government through the pari-mutuel system.
No. It gave provinces and territories the power to conduct and manage single-event betting. Ontario chose to register private operators from 4 April 2022; other provinces decide for themselves.
Yes. Provinces could already offer betting on the outcome of more than one sporting event, which is how products such as PRO-LINE worked.
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