How US Gambling Laws Compare to Canada's

Canadian and US gambling regulations have some clear similarities and differences. Both countries have devolved regulatory systems that allow provinces and states to decide their own legislation pertaining to land-based and online gambling. Canada's federal regulations prohibit gambling under the Canadian Criminal Code unless licenced by the province. This helps to create a uniform national framework that allows diversity within different provinces. In contrast, the US has a much more fragmented framework with state, tribal, and federal laws making it complicated to navigate. The federal guidelines are more general and act as a guide for state regulations which are regularly updated and amended. Online gambling in Canada saw regulatory changes in 2021 when the Canadian Criminal Code was updated to prohibit the act unless licensed by the province. The majority of provinces have limited online gambling facilities, dominated by provincial lottery operators. Online gambling in the US is a far more complicated subject with laws changing by state. The American gambling industry saw one of the most influential changes to legislation take place in 2018 when the Supreme Court overturned the PASPA Professional and Amateur Sports Protection Act that prohibited sports betting. Many states moved quickly to pass legislation that would allow in-person and online sports betting. 30 states now allow online sports betting, but only 6 have licensed online casino operations. The limited nature of the Canadian and US online gambling markets has led to an increase in consumers exploring offshore operators for the best online slots and casino games. Online gambling expert Sergio Zammit describes how Canada's online gambling regulatory update failed to include legislation that prevented Canadian citizens from accessing offshore operators. The US is in a similar position and operators licensed in other countries can offer a secure way for consumers to gamble legally. The Canadian province with the strictest gambling regulations is Newfoundland and Labrador which have no licensed online gambling sites and is the only province in Canada without a land-based casino. However, there is a race track, state lottery, and sports betting facilities. In comparison, two states in the US have no regulated gambling facilities at all. Hawaii and Utah are the states in question with religion, tradition, and family values being the main reason. Both countries have different regulations for the land inhabited by indigenous populations. In Canada, First Nations casinos are run by Indigenous communities on reservations, while the US has tribal gaming casinos that operate under the Indian Gaming Regulatory Act of 1988. The Native American gambling industry is overseen by the National Indian Gaming Commission and tribal communities enter into compacts with state governments who issue licenses. Another significant difference between the gambling industries in Canada and the US relates to consumer winnings. In Canada, gambling is not viewed as regular income so isn't taxed. In the US, gambling winnings are viewed as fully taxable. US consumers must disclose any gambling winnings on their tax returns, however you can deduct gambling losses offset by your winnings. Despite the complicated nature of gambling in the US, the country has one of the largest markets in the world with a gross gaming revenue of $66.65 billion in 2023. In contrast, Canada's gambling market was valued at $14.2 billion. While this may look like a massive difference, it is important to remember that Canada has a population of just over 40 million compared with the US which has just under 335 million. However, as legislation in Canada and the US continues to evolve, it is likely that these figures will grow significantly in the coming years.