Betlama’s Guide to Understanding Canadian Sports Betting History

Canada’s sports betting landscape has undergone a remarkable transformation over the past century, evolving from strict prohibition to a thriving regulated industry. Understanding this history provides essential context for anyone interested in how Canadians engage with sports wagering today. The journey from underground bookmakers to legitimate provincial operations and eventually to the modern digital marketplace reflects broader shifts in Canadian society, including changing attitudes toward gambling, provincial autonomy, and the influence of technological advancement. Betlama recognizes that comprehending this historical evolution helps bettors appreciate the current regulatory framework and anticipate future developments in this dynamic sector.

The Early Days: Prohibition and the Criminal Code

Sports betting in Canada began under the shadow of strict prohibition. The Criminal Code of 1892 made most forms of gambling illegal, including wagering on sporting events. This legislation reflected Victorian-era moral attitudes that viewed gambling as a social vice requiring government suppression. However, prohibition rarely eliminates demand, and illegal bookmaking operations flourished throughout the early twentieth century, particularly in major urban centers like Montreal, Toronto, and Vancouver.

The first significant crack in this prohibitive framework came in 1900 when pari-mutuel betting on horse racing received legal sanction. This exception established an important precedent: gambling could be acceptable when properly regulated and when proceeds benefited specific industries or charitable causes. For decades, horse racing remained the only legal avenue for Canadians to place bets on sporting outcomes, creating a unique culture around racetracks that persisted well into the modern era.

The post-World War II period brought gradual liberalization. In 1969, amendments to the Criminal Code granted provinces the authority to operate and regulate lottery schemes, though sports betting remained largely restricted. This represented a fundamental shift in Canadian gambling policy, moving from federal prohibition toward provincial jurisdiction—a pattern that would define the industry’s development for the next fifty years.

Provincial Lotteries and the Birth of Parlay Betting

The 1970s marked the true beginning of legal sports betting in Canada. In 1970, amendments to the Criminal Code explicitly allowed provinces to offer lottery schemes on sporting events. However, there was a critical restriction: single-game betting remained prohibited. Provinces could only offer parlay betting, requiring bettors to correctly predict the outcomes of multiple games simultaneously. This limitation was intended to distinguish legal wagering from the single-game bets offered by illegal bookmakers.

Provincial lottery corporations quickly capitalized on this opportunity. Sport Select launched in Ontario in 1976, followed by similar products in other provinces. These parlay betting systems became fixtures of Canadian sports culture, particularly around major events like the NHL playoffs and NFL season. Despite their popularity, parlay bets were significantly more difficult to win than single-game wagers, giving provinces substantial revenue advantages while frustrating bettors who recognized the superior odds available through illegal channels or across the border in Nevada.

Throughout the 1980s and 1990s, provincial lottery corporations refined their offerings, introducing different parlay formats and expanding the range of sports covered. British Columbia’s PlayNow system, Quebec’s Mise-o-jeu, and the Atlantic Lottery Corporation all developed their own branded sports betting products. These operations generated hundreds of millions of dollars in annual revenue for provincial governments, funding healthcare, education, and infrastructure projects. As the industry matured, many bettors began exploring the top betting platforms Canada would eventually embrace once regulations changed, though at this stage such platforms operated in legal grey areas.

The Push for Single-Event Betting Reform

By the early 2000s, pressure was mounting to eliminate the parlay-only restriction. Several factors drove this reform movement. First, the internet had made offshore betting sites easily accessible to Canadians, who were placing billions of dollars in wagers with unregulated international operators. This represented both lost tax revenue and consumer protection concerns, as these offshore sites operated beyond Canadian legal oversight.

Second, major professional sports leagues began softening their opposition to sports betting. For decades, leagues like the NHL, NBA, and NFL had vigorously opposed gambling expansion, citing integrity concerns. However, as these leagues recognized the inevitability of betting’s growth and its potential to increase fan engagement, their stance evolved. The 2018 U.S. Supreme Court decision in Murphy v. NCAA, which struck down the federal prohibition on sports betting in the United States, accelerated this shift in perspective.

Third, Canadian provinces argued persuasively that the parlay restriction was counterproductive. Rather than protecting consumers, it drove them toward illegal bookmakers or offshore websites that offered single-game betting. Provincial governments contended they could better regulate the market, ensure game integrity, and protect problem gamblers if given the authority to offer competitive products.

After years of lobbying and multiple legislative attempts, Parliament finally passed Bill C-218 in June 2021, receiving Royal Assent in August of that year. This landmark legislation amended the Criminal Code to permit single-event sports betting under provincial regulation. Betlama views this reform as the most significant development in Canadian sports betting history, fundamentally restructuring the marketplace and opening the door to modern, competitive wagering options.

The Modern Era: Regulated Digital Betting

The period following Bill C-218’s passage has been characterized by rapid market development. Provincial lottery corporations moved quickly to launch single-event betting products, updating their digital platforms to compete with the sophisticated interfaces bettors had experienced through offshore sites. Ontario took the most aggressive approach, establishing the Alcohol and Gaming Commission of Ontario (AGCO) as its regulator and creating a competitive licensing framework that allowed private operators to enter the market alongside the provincial lottery corporation.

Ontario’s regulated market officially launched in April 2022, representing a watershed moment. For the first time, international betting operators could legally offer their services to Canadian residents through properly licensed entities. This competitive model contrasted with other provinces, which maintained monopolistic approaches through their lottery corporations. The Ontario experiment has generated substantial tax revenue while providing consumers with unprecedented choice in betting platforms, odds, and user experiences.

Other provinces have adopted varying approaches. British Columbia, Quebec, and Alberta have maintained exclusive provincial models while enhancing their digital offerings. Saskatchewan and Manitoba have followed similar paths, prioritizing government-operated platforms. The Atlantic provinces continue to coordinate through the Atlantic Lottery Corporation. This patchwork of regulatory frameworks reflects Canada’s federal structure and the constitutional division of powers that grants provinces jurisdiction over gambling within their borders.

The modern Canadian sports betting landscape now features live betting, mobile wagering, diverse betting markets beyond traditional point spreads and totals, and sophisticated player analytics. Technology has transformed the user experience, with features like cash-out options, bet builders, and streaming integration becoming standard offerings. Responsible gambling tools have also advanced significantly, with operators implementing deposit limits, self-exclusion programs, and reality checks to help prevent problem gambling.

Betlama observes that this evolution continues at a remarkable pace. Emerging technologies like artificial intelligence are being deployed to enhance odds-making accuracy and identify problem gambling patterns. The integration of sports betting with media consumption—through broadcaster partnerships and in-stadium betting lounges—is reshaping how Canadians experience sporting events. Meanwhile, ongoing discussions about federal standards for advertising, responsible gambling, and data sharing suggest the regulatory framework will continue evolving.

Understanding Canadian sports betting history reveals a gradual but persistent movement toward liberalization, driven by technological change, shifting social attitudes, and economic pragmatism. From complete prohibition to provincial monopolies to competitive licensing, each phase has reflected the values and priorities of its era. The current landscape, while more open than ever before, still bears the imprint of this history through its provincial regulatory structure and ongoing emphasis on responsible gambling measures that distinguish the Canadian approach from other jurisdictions.

The historical trajectory of sports betting in Canada demonstrates how policy can adapt to social and technological realities while maintaining regulatory oversight. As the industry continues maturing, the lessons from this history—particularly regarding the balance between accessibility and consumer protection—will remain relevant. Betlama believes that bettors who understand this context are better equipped to navigate the current marketplace, appreciate the protections that regulation provides, and engage with sports betting as an informed and responsible form of entertainment. The journey from prohibition to the present day reflects Canada’s broader evolution, and the next chapters of this story will undoubtedly bring further innovation and refinement to this dynamic industry.