What is the difference between online gambling in the US and Canada?

The United States and Canada do not share the same continent. Their culture, their traditions, even their love of sports and sports of chance are similar. Therefore, online gambling also comes in this basket.

However, the general enthusiasm for online gambling is not enough to say that the two countries are equal in this area. What drives a knife and cuts them is their law. The United States and Canada are federal and state / provincial gambling law associations; however – they are completely different.

It is Canada that does not allow the hosting of online gambling sites, but there is no problem with foreign betting or online gambling. And the United States sees the exact opposite.

So what do these two neighbors have in common and where do they differ when it comes to online gambling? Read on to find out the difference between online gambling in the US and Canada.

Legalization of online gambling

One of the most researched questions is whether online gambling is legal in the United States. Given the number of laws passed to control this issue, it can be considered a complex issue.

One of the most famous is that the Wire Act was passed in 1961, which prohibited certain types of gambling. However, in 2011 it was decided that this would only apply to sports betting as it did not explicitly prohibit online gambling. It ultimately allowed individual states to decide whether or not to legalize gambling.

Today, the United States allows online gambling. Or better yet, federal law legalizes online gambling but leaves the details to the states. Therefore, if you are considering online gambling in the United States, you should first look at what your state’s gambling law allows and prohibits.

Another thing to remember is that while online gambling is legal in the United States, offshore online gambling is not!

Canada, on the other hand, and its laws. The legal hierarchy is the same but produces different results. In other words, online gambling is forbidden in Canada, but the law itself is not. This means you can bet on any offshore online casino or play online games.

This is because the Canadian government does not issue licenses that legalize gambling in its territory. However, there is a small catch!

Kahanwake – The Mohawk Territory in Canada, created the Kahanwake Gaming Commission, which licenses gambling on the Mohawk Territory. Considering that this is a sovereign territory, best online casino Canada players can access are based right here.

Online Casino – Yes or No

You can play online casino from any province in Canada. However, some US states have banned online casino games. Here is a list of states where online casinos are legal:

  • Nevada,
  • Delaware,
  • new Jersey,
  • Connecticut,
  • Pennsylvania (joined in 2017),
  • West Virginia (joined in 2019),
  • Michigan (entered 2021).

Online Sports Betting – Betting or Not Betting

Online sports betting is different, but worth mentioning here, mainly due to its impact on the online gambling industry.

We can take the example of Canada. Some of the rules are different from those that apply to online casinos. Single match sports betting became legal in this country in 2021, a major step towards online gambling for everyone in the Great White North.

South of the border, however, the United States has been regulating online sports betting since 2018.

Tax law is a tipping point

Here everything is quite the opposite.

In the Great White North, there are no fees for winning online gambling. So if you win a million, you’re in luck – you have to keep it! This happened in 2015, when one lucky Canadian won about 7.5 million. Slots from the progressive jackpot to CA.

But in the United States, things are a little different. All your wins are subject to a flat rate of 25%. You can earn as much as 1, but you still have to pay a fee. Discounts are only available to those who consider gambling as their main source of income.

However, this requires completion of other forms and is likely to be the basis for other fees.

Game provider

Although Canada only allows its players to play online games of chance abroad, it is safe to say that Canadians love every game provider. 

Payment methods

Both the United States and Canada use the same payment methods for withdrawing and depositing money. You can use Skrill, Neteller, Interac, Visa, MasterCard, cryptocurrencies or any other method you like.

When it comes to currencies, the US has an advantage because the dollar is widely used, both in indoor and offshore casinos!

Bonus form

Promotions are offered due to high competition in the market. So with that in mind, it’s clear that Canadians have a better chance of getting a bigger bonus than Americans. This is not to say that there are no big bonuses in the US, it’s just that online casinos can be better around them because the market is limited.


These are the main differences and some similarities between the US and Canadian online gambling markets. Both have their strengths and weaknesses.

Some may argue that Canada is better off without the law and should stay where it is. But the fact that the laws of your country back you up in any possible fraud or other matter is a big win for the US.

Nevertheless, both countries are working hard to remove all obstacles in their path. Therefore, we are confident that Canada will settle this issue in the near future and that the United States will open its doors to international casinos.


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