Crypto gambling is a hot topic among gambling regulators in various gambling markets. The biggest problem players face is knowing the legal standing of cryptocurrency in gambling and whether they are on the right side of the law. Canadian players who want to know the standing of online gambling in Canada can get all the information they need from our guide. We will cover everything you need to know about the law, taxation, and the future of crypto gambling in Canada.
Gambling and Canadian Law
We cannot examine crypto gambling Canada laws without discussing gambling in general. Gambling is a legal practice in Canada and players are allowed to play their favourite games or wager on the outcomes of sports. This also means that safeguards have been put in place to secure the players against unregistered gambling entities. Although gambling is legal, it varies from province to province hence players must be aware of the laws in their local area.
Canadian law also covers AML (Anti-Money Laundry) and KYC (Know Your Customer) requirements which vary among provinces. All players are required to verify their identities and source of income before they are allowed to gamble. Where players live affects where they can place bets and the games available for play. Essentially, Canada allows each province to set their gambling laws to enable better control of their regions effectively.
There are no regulations governing crypto gambling in Canada. As there are no direct laws governing crypto bets it means it falls under the purview of regular gambling regulations. This has created a grey area that players and regulators have to carefully navigate to get the best from the industry.
The Crypto Grey Area
Navigating the crypto grey area involves gambling using cryptocurrencies without the protections afforded regular gambling operations. Players are required to place bets on only licensed casinos. If there are no crypto casinos that offer gambling services, they will have to use offshore operators for their gambling needs. Although this is legal, players need to choose carefully to avoid scams and bad actors.
There might be problems with some gambling operators who do not offer services to some provinces. For example, Stake.com does not offer services to players in Canada. This is because they do not have the required license to offer betting services to players in the area. Therefore, Canadian players in the province will have to use a VPN to access the service or find an operator that they can use.
Players may be reluctant to use crypto gambling services because of the legal standing and vague regulations. Using VPNs is an option but this can lead to complications down the line. The best way to enjoy crypto gambling services is to use registered providers who have the right license to offer gambling services in your province of residence.
Gambling and Taxes
Canada taxes crypto bet winnings because crypto assets are considered to be commodities. The Canada Revenue Agency requires players to keep detailed accounts of their wins and losses when they gamble using cryptocurrency. This enables proper taxation to be performed on their gains subject to their province. Players will be taxed based on their province of residence. Therefore, players should be familiar with the taxation systems and percentages required based on their province. It is also advisable for players to chat with Canadian tax professionals who can give them a better understanding of how to file returns on their gambling winnings.
The Future of Crypto Gambling in Canada
The future of crypto gambling is unsure in Canada but there are signs that there will be regulations in the future. Taxation is a major issue for most crypto gamblers in Canada because it eats into the value of their winnings. As regulators and lawmakers try to iron out the laws of this emerging technology, players will have to wait and see what the future brings. For now, the best way to enjoy crypto games is to use providers that are available in your region. Where necessary, you can use VPNs to access your favourite crypto casino.
