Gambling Licenses

The Importance of Gambling Licenses

Canadians who use licensed gambling operators know they benefit from regulations that greatly minimize their risk. Such rules help protect data, ensure the fairness of games, and make sure there’s no illegal activity going on. Here at CanadianCasinoNews, we only promote licensed casinos to ensure our readers remain protected at all times.

What are Gambling Commissions?

The Federal Gambling Commission in Canada is known as the Gaming Authorities. These are government agencies that establish regulations by which casinos must operate. Of course, they also monitor and enforce these regulations when needed. Generally, the rules are designed to protect players from unwarranted risk and guarantee fair, transparent gaming policies across the board. Each Canadian province is responsible for its respective Gaming Authorities, but any provincial rules are also coordinated with national authorities.

Gambling Licenses in Canada

Until 2021-2022, Canadian Gambling licenses were exclusively the dominion of government agencies within the ten provinces and First Nations territories. However, international operators can now apply for independent licenses for all (or individual) Canadian Gaming Authorities thanks to the new, more comprehensive application process. However, applicants must meet strict policy guidelines and agree to monitoring and enforcement to ensure they continue complying.

Do international Gambling Licenses meet Canadian Standards?

Typically, yes. The license processes put in place by countries like the UK, Curacao, Malta, Gibraltar, and the Isle of Man are considered the gold standard in terms of player safety, and countries like Canada have followed their lead. In fact, the UK Gambling Commission operates based on the National Gambling Act of 2005, which includes priorities such as:

• Ensuring games are fair and accurate.
• Preventing connections between gambling and criminal activity.
• Preventing children and other vulnerable persons from being taken advantage of.

Therefore, the licensing criteria are quite stringent. They include:

• Confirming the identities of shareholders applying for the license to ensure accountability.
• Proof that the company shareholders are trustworthy, including clear criminal records.
• Proof that the company shareholders have the financial capacity to operate the business (including the capital to absorb losses).
• Proof that they have the qualifications and experience to manage a gambling business.

How can Canadian Players tell where a casino is licensed?

Global online casino operators are quired to display their licensing details prominently. This helps inform and assure consumers that they meet all the necessary requirements to operate in a given country or jurisdiction.

Can casinos licensed overseas legally operate in Canada?

Yes and No. For instance, Canadian players are free to use Overseas licensed casinos as they wish. However, some provinces have formed partnerships with international casino operators that provide specific access to their regions. Ontario, for instance, is the largest Canadian market for online gaming, but has not yet instituted such a rule.

In 2014, the UK Gambling Act required that international operators base some of their equipment or facilities in the UK. They claim that this model helps contribute to local employment and economic growth. It’s possible some Canadian provinces will do the same.

How do companies go about getting a gambling license?

Most online casino operators hold gambling licenses from international jurisdictions like those mentioned above. Places like the UK, Curacao, Gibraltar and Malta are highly respected because they have high standards for transparency and fair play. If a casino has earned such a license, it will normally display it prominently on its site. It also informs the player that this casino has accepted the oversight that comes with the license.

Canadian Licensing Criteria

Each province has its own Gaming Authorities and they establish the rules for operating in that jurisdiction. However, the AGCO has developed a seven-step process that you might consider to be the “licensing criteria.” They are as follows:

• Ensure Games and Critical Gaming Systems Are Independent Testing Laboratory (ITL) Certified
• Make sure companies register with the AGCO
• Implement Control Activities to Comply with AGCO Internet Gaming Standards
• Participate in Internet Gaming Notification Matrix Training
• Set Up Regulatory Reporting via AGCO
• Permit Access to AGCO’s Secure Data and Information Communication Channels
• Provide Technology Compliance Confirmation

Can a casino operate without a license?

Unfortunately, yes. The system is mostly a guide, and the internet being what it is, there’s no 100% failsafe way to keep rogue online casinos from operating without a license. That said, these types of operations are usually flagged by international authorities and shut down. However, plenty of casinos feign legitimacy until they get caught, which can take time. All the online casinos as well as the game software providers we feature are all properly licensed with the most reputable gaming authorities.

What are Blacklisted casinos?

The “Blacklist” refers to unlicensed casinos that have questionable business practices and / or lack financial transparency. Once these rogue operators are identified, they are blacklisted by international authorities as “illegal” or dangerous sites. To help, a global gambling commission cooperative lists all legitimate igaming suppliers, systems support, and financial institutions. They can help in the fight to shut these operators down. We also maintain a full, curated list of blacklisted casinos on our own site.

Conclusion

Most Canadian provinces are still putting together an official roadmap for licensing. However, the country as a whole is committed to creating a safe community for everyone concerned, but it supports the growing gambling industry rather than prevents it. The goal? To give Canadians access to the best online casinos in the world via partnerships between gaming authorities and the very best global operators.