Online gambling
is in a legal gray area in Canada.
Internet gaming is a fast-growing and highly controversial new industry that reportedly raked in about $8.5 billion in 2004, according to GamblingPlanet.org. CBC news reported that the U.S. General Accounting Office estimated there were over 1,800 online casinos in 2003. The enormous popularity and growth of this industry worldwide has led to many variations in how countries legislate online gambling, but currently the law is not very clear in Canada.
Gamblers
Under the current law in Canada, it is not clear whether or not patrons of online casinos are in violation of the criminal code. No law specifically mentions accessing a casino online. However, conventional gambling is under the control of the provinces, which tightly regulate lotteries and casinos. According to a CBC News in-depth report on gambling in Canada, this could make it possible for a person to be charged under current law with being found in a "common betting house," since online gambling websites are not regulated lotteries or casinos.
Proprietors
CBC reports that even though Canadian companies like Cryptologic are world leaders in providing the software that runs online gambling websites, it is not legal to set up or operate an online casino in Canada. However, since gambling is under the jurisdiction of the provinces, this remains a gray area of the law since no provincial legislature has written any laws specific to online gambling. One test case that could determine the legality of hosting online gambling websites in Canada is an investigation by Lotto Quebec into the operation of a portal and server for international online casinos by the Khanawake reserve in 2001. Lotto Quebec has stated this may be illegal, but the investigation has never led to any charges.
Fraud
All the current laws in Canada that govern acts of fraud, including credit card and identity fraud, apply to Canadian citizens using online gambling sites. For example, although there are no laws written specifically for the regulation of online casinos, an individual who fraudulently uses another person's credit card, identity or other financial information on an online casino can be prosecuted under current law. Additionally, laws pertaining to the minimum age for gambling are applicable to users of online gambling websites.
Comparison
The legal treatment of online gambling varies greatly from country to country. In the U.S. it is illegal to operate online casinos. Once legal in Australia, online gambling has now been outlawed except for sports and lotteries. Great Britain offers some licenses for online casinos hosted on its soil. In Holland, online gambling is legal but very tightly regulated. Users must register for a unique tracking code that allows the state to evaluate if anyone is gambling excessively and gives it the power to recommend counseling or completely cut off a person's access.
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