Canada vs USA: Navigating Two Different Gambling Regulatory Landscapes

Canada and the USA are often grouped together as "North American" traffic.

But their gambling regulations work completely differently. What's legal in Ontario isn't legal in California. What works in Quebec won't work in New York.

Understanding these differences is essential for affiliates targeting North American players.

For basics, see our beginner's guide to casino affiliate marketing.

Canada Overview

The Gray Market Era (Before 2021)

Historically, Canada was a "gray market":

Provincial lotteries had monopoly. Legal gambling was through provincial lottery corporations.

Offshore sites operated openly. Canadians widely used offshore casinos without significant enforcement.

Affiliates thrived. The gray market supported substantial affiliate activity.

The iGaming Transition

Starting with Ontario in April 2022:

Provincial regulation. Ontario created the Alcohol and Gaming Commission of Ontario (AGCO) iGaming framework.

Private operators can be licensed. For the first time, private online casinos can operate legally.

Market transformation. Many major operators now hold Ontario licenses.

Current Canadian Landscape

The situation now:

Ontario: Regulated iGaming market. Licensed operators can legally serve Ontarians. Affiliates can promote licensed operators.

Other provinces: Most still operate under gray market model. Provincial lottery sites are legal; offshore sites operate without licenses but also without significant enforcement.

Quebec: Has its own approach with Loto-Québec. Private operators face restrictions.

British Columbia, Alberta, etc.: Gray market continues. BCLC and other provincial operators have online offerings.

Canadian Affiliate Implications

Ontario-specific strategy: Promote AGCO-licensed operators to Ontario traffic. Comply with Ontario advertising standards.

Rest of Canada: Gray market continues for now. More freedom but less certainty.

Watch for expansion: Other provinces may follow Ontario's model.

USA Overview

State-by-State Patchwork

US gambling regulation is state-by-state:

No federal licensing. Each state decides its own gambling laws.

Wild variation. From fully legal to completely prohibited.

Constant change. States regularly consider or implement changes.

Legal iGaming States (as of 2024-2025)

States with legal online casino gambling:

New Jersey: First major iGaming market. Mature, competitive.

Pennsylvania: Large population, significant market.

Michigan: Growing market, multiple operators.

West Virginia: Smaller market, legal framework exists.

Connecticut: Tribal-operated, limited operators.

Delaware: Small state, early adopter but limited market.

This list expands gradually. Check current status when planning.

Sports Betting Landscape

Much wider than casino:

30+ states have legalized sports betting to varying degrees.

Sports betting often precedes casino legalization. Affiliates can participate in more states for sports than for casino.

The Offshore Reality

Despite legal options:

Many Americans still use offshore platforms. These aren't legal, but enforcement against individual players is rare. Enforcement against operators and affiliates is more significant.

Promoting offshore casinos to Americans carries meaningful legal risk.

Key Differences

Regulatory Philosophy

Canada: Federal Criminal Code creates baseline; provinces regulate. Generally permissive toward player activity.

USA: State-by-state with federal involvement (Wire Act, UIGEA). More aggressive enforcement history.

Enforcement Approach

Canada: Limited enforcement against offshore operators or affiliates.

USA: Active enforcement including domain seizures, payment processor actions, and prosecution of operators.

Market Access

Canada: Large population accessible under relatively uniform gray market conditions (except Ontario).

USA: Market fragmented by state. Legal market is growing but still minority of population.

Affiliate Implications

Canada: More operational freedom; less regulatory clarity.

USA: Clearer rules in legal states; more risk in unregulated activity.

Affiliate Strategy: Canada

Ontario Approach

For Ontario traffic:

Partner with licensed operators. bet365, BetMGM, DraftKings, FanDuel, and others hold AGCO licenses.

Comply with advertising standards. AGCO has rules about responsible gambling messaging, bonus advertising, etc.

Separate Ontario traffic. Geo-targeting helps serve compliant content.

Leverage legitimacy. "Licensed and regulated in Ontario" is a trust signal.

Rest of Canada

For other provinces:

Gray market continues. Offshore operators still widely used.

Less restriction. Fewer advertising compliance requirements.

Monitor for change. Provincial regulation may expand.

Quality focus. Recommend reputable platforms even without licensing requirements.

Canadian Content

What works in Canada:

Sports betting focus. Hockey (NHL), CFL, plus major US leagues.

Casino content. Both slots and table games popular.

Crypto adoption. Canada has significant crypto usage.

Quality over promotion. Canadian players respond to informative content. See our casino SEO guide for content strategies.

Affiliate Strategy: USA

Legal State Focus

For states with iGaming:

Partner with licensed operators. Only promote platforms licensed in the state you're targeting.

State-specific content. What's available in New Jersey differs from Michigan.

Compliance investment. Legal US market requires serious compliance attention.

Geo-targeting essential. Serve different content to different states.

Sports Betting Opportunity

Wider opportunity:

30+ state market. Much larger accessible population.

Major operators. DraftKings, FanDuel, BetMGM, Caesars, etc.

Cultural moment. Sports betting legalization has mainstream attention.

Seasonal opportunities. NFL, March Madness, etc. drive volume.

Offshore Considerations

The complicated question:

Many affiliates promote offshore casinos to Americans. This exists in legal gray area with real risk.

Potential consequences:

• Domain seizure
• Payment processor issues
• Legal action
• Platform relationship problems

Risk assessment is individual. Some accept it; others don't. Compare with UK regulations for a fully licensed approach.

US Content Strategy

What performs:

State-specific guides. "Best Online Casinos in New Jersey" etc.

Comparison content. Licensed operator comparisons.

Bonus analysis. With compliance attention to disclosure requirements. Understand negative carryover and other program terms.

Sports betting content. Wider state availability.

Crypto Considerations

Canada

Crypto casinos operate in the gray market:

Canadian players widely use crypto casinos. No specific regulatory framework addresses them.

For affiliates, promoting crypto casinos to Canadians (outside Ontario) faces minimal regulatory restriction.

USA

More complicated:

State regulations don't typically address crypto specifically. But platforms still need gaming licenses.

Offshore crypto casinos aren't legal. Payment method doesn't change the licensing requirement.

Banking complications. US financial system increasingly implements crypto gambling restrictions.

For platforms like PureOdds offering 50% RevShare with no negative carryover, focus on jurisdictions where crypto casino promotion is viable rather than US legal states.

Practical Comparison

Traffic Value

Canadian player: Typically good value. Stable economy, mature gambling culture.

US player (legal state): High value. Large spending potential, competitive acquisition environment.

Competition Level

Canada (outside Ontario): Moderate competition. Gray market supports many affiliates.

Ontario: Increasing competition. Licensed market attracts major players.

US legal states: High competition. Major operators have substantial marketing budgets.

Compliance Cost

Canada gray market: Low. Limited regulatory requirements.

Ontario/US legal: Higher. Compliance infrastructure needed.

Risk Profile

Canada: Lower regulatory risk, less legal certainty.

US legal: Lower legal risk, more compliance burden.

US offshore: Higher risk, enforcement reality.

Future Outlook

Canadian Trajectory

Provincial regulation likely to expand. Other provinces watching Ontario.

Gray market may shrink. As regulated options grow.

Affiliate adaptation needed. Compliance will matter more over time.

US Trajectory

Continued state-by-state expansion. More states likely to legalize iGaming.

Market consolidation. Fewer, larger operators and affiliates.

Regulation maturation. Rules becoming clearer and stricter.

Strategic Implications

Build compliance capability. Both markets moving toward regulation.

Diversify geographically. Don't over-rely on either market.

Monitor actively. Rules change; stay current. Compare with emerging markets like Brazil for diversification opportunities.

Action Items

Separate Canadian and US strategy. Different markets, different approaches.

Geo-target content. State/province-specific where relevant.

Assess legal risk tolerance. Especially for US offshore activity. Learn to identify casino affiliate red flags in program selection.

Build compliance processes. For Ontario and US legal states.

Monitor regulatory developments. Frequent changes in both countries.

---

Gambling regulations in both Canada and the USA vary by jurisdiction and change frequently. This guide provides general orientation and should not be considered legal advice. Verify current regulations for specific states and provinces.