Gaming in Canada is a federal crime unless an exception applies. Section 207 is the main exception: a province may conduct and manage a lottery scheme, charities and fairs need a provincial licence, and private companies only take part through a province.
- Prize cap at a public place of amusement, s. 207(1)(d)
- $500
- Price of a chance at a public place of amusement, s. 207(1)(d)
- $2 max
- Maximum term for running an unauthorized scheme, s. 207(3)(a)
- 2 years
- Ontario regulated market, operators / websites (iGO, 2026-09-01)
- 49 / 84
Start with the ban, then read the exception
Part VII of the Criminal Code is built backwards from how most people expect a gambling law to look. It first makes the activity an offence and only then lists who may do it anyway. Keeping a common gaming house is an offence under section 201, and section 206 makes it an offence to conduct or manage a scheme for deciding by chance who wins property, or to dispose of goods by a game of chance or mixed chance and skill. Both can be prosecuted as indictable offences carrying up to two years' imprisonment.
Section 207 opens with the words "Notwithstanding any of the provisions of this Part relating to gaming and betting, it is lawful".Everything legal about casinos, lotteries, slot halls and regulated online gaming in Canada flows through that sentence. If an activity does not fit one of its paragraphs, the general prohibitions apply.
Paragraph (a): the province conducts and manages
Paragraph 207(1)(a) allows the government of a province, either alone or in conjunction with the government of another province, to conduct and manage a lottery scheme in that province, or in that and the other province, in accordance with any law enacted by the legislature of that province. Three points in that wording matter in practice.
- The actor is a government. The paragraph does not mention private companies. Provinces act through Crown corporations and agencies.
- "Conduct and manage" is the test. A province can hire suppliers and partners, but it has to remain the one conducting and managing the scheme. Paragraph 207(1)(g) adds that anyone may do what is required to conduct, manage or operate a lawful scheme, or to take part in it, in accordance with the applicable law or licence. That is the opening for private operators.
- Joint schemes are allowed between provinces. The words "in conjunction with the government of another province" are why multi-province lotteries are possible.
Charities, fairs and the $500 / $2 limit
The other paragraphs are narrower and every one of them depends on a provincial licence:
| Paragraph | Who | Condition in the text |
|---|---|---|
| 207(1)(b) | Charitable or religious organization | Licence from the province; proceeds used for a charitable or religious object or purpose |
| 207(1)(c) | Board of a fair or exhibition, or its concession operator | The province has designated the fair or exhibition and licensed the board or operator |
| 207(1)(d) | Any person at a public place of amusement | Provincial licence; each prize worth no more than $500; no more than $2 paid for a chance to win |
| 207(1)(f) | Any person running a scheme already authorized in another province | Provincial licence; consent of the authority that first authorized it |
Under subsection 207(2), these licences can carry terms and conditions set by the province. Then subsection 207(4)(c) closes an important door: for paragraphs (b) to (f), a lottery scheme does not include a game "operated on or through a computer, video device, slot machine or a dice game". In plain terms, a charity or fair can hold a licensed raffle or bingo, but slot machines, video lottery terminals and online casino games are left to the province itself under paragraph (a).
What counts as a "lottery scheme"
Subsection 207(4) defines a lottery scheme by pointing back to the games and schemes described in paragraphs 206(1)(a) to (g), whether or not betting, pool selling or a pool system is involved. That definition is wide enough to cover casino table games, slots and online casino games. It then lists exclusions:
- three-card monte, punch boards and coin tables;
- bookmaking, pool selling or the making or recording of bets, including through a pool or pari-mutuel system, on any horse-race.
The horse-race wording is the result of the Safe and Regulated Sports Betting Act (S.C. 2021, c. 20), which rewrote paragraph 207(4)(b). Because sports bets other than horse-race bets are no longer excluded, a province can offer them under paragraph (a). Subsection 207(5) adds that nothing in the section authorizes pari-mutuel betting on horse races except in accordance with section 204, which keeps racing on a separate federal track.
How Ontario fits private operators into paragraph (a)
Ontario is the clearest example of how a province uses paragraph (a) with private companies. According to the Alcohol and Gaming Commission of Ontario, iGaming Ontario conducts and manages internet gaming "when provided through private gaming companies (Operators) in accordance with Canada's Criminal Code", and it develops and executes operating agreements with those operators. The AGCO registers operators and suppliers and enforces the Registrar's Standards, which took effect when the market launched on April 4, 2022.
So a private brand in Ontario is not licensed by the province to run its own casino. It operates a site inside a scheme that a provincial agency conducts and manages. The iGaming Ontario player page lists 49 operators and 84 gaming websites as of 2026-09-01, sets play at 19+ and requires the player to be physically located in Ontario. Our Ontario casino guide covers only brands from that regulated market.
Reading a site through section 207
The section gives a simple question to ask about any gambling site: who is conducting and managing the game?
| Type of site | Who conducts and manages | Where the authority comes from |
|---|---|---|
| Provincial lottery or casino site | The province, through its Crown corporation | 207(1)(a) and provincial law |
| Private brand in Ontario's regulated market | iGaming Ontario, with the operator under an operating agreement | 207(1)(a) and 207(1)(g); AGCO registration |
| Licensed charity raffle or bingo | The charity, under a provincial licence | 207(1)(b); not available for computer, video or slot games |
| Site with no provincial link | The private company itself | Section 207 does not name such an operator |
Subsection 207(3) states the consequence for activity outside the section: conducting, managing or operating a scheme that is not authorized is an offence, and so, under paragraph 207(3)(b), is participating in it, as a summary conviction offence. This article only reports what the text says. How it is enforced and how it applies to a specific site are questions for a lawyer.
For players, the practical result is that the province is the anchor. A provincial site or a site listed in a regulated provincial market can point to section 207; other sites cannot. Our overview of Canadian online casinos explains which markets each brand serves, and the responsible gaming page lists the limits and self-exclusion tools that regulated sites must offer.
This is general information, not legal advice.
Questions readers ask
Can a private company get a casino licence directly under the Criminal Code?
Section 207 does not provide one. Private operators take part through a scheme a province conducts and manages under 207(1)(a), relying on 207(1)(g) for what they do inside it, as in Ontario's operating agreements with iGaming Ontario.
Why can a charity run a raffle but not an online slot site?
Subsection 207(4)(c) says that for paragraphs (b) to (f) a lottery scheme does not include a game operated on or through a computer, video device, slot machine or dice game. Those games are left to the province under paragraph (a).
Did the 2021 sports betting change touch section 207?
Yes. The Safe and Regulated Sports Betting Act (S.C. 2021, c. 20) rewrote paragraph 207(4)(b), so the exclusion now covers only bets on horse races. Other sports bets can be offered by a province.
Who regulates the private brands in Ontario?
The AGCO registers operators and suppliers and enforces the Registrar's Standards; iGaming Ontario conducts and manages the games and signs operating agreements with operators.
Sources
This explainer is general information about Canadian rules, not legal, tax or financial advice. Laws and agency policies change; check the source documents or ask a professional before you rely on them.
