A Journey Through the History of Sports Betting in Canada
Sports betting has held a special place in the hearts of Canadians, with pioneers wagering on a wide range of competitions, including boxing, ice hockey, and horse racing. As the nation developed, so too did its hunger for betting on live events, resulting in a flourishing bookmaking industry that stretched from bustling metropolises like Toronto to quaint port cities such as Halifax. From the early days of dice games and horse racing to modern Proline tickets and online sportsbooks, Canada’s enduring love for gambling has woven itself into the fabric of the nation’s history.
This passion for sports betting transcends time, as evidenced by the ancient game of Slahal played by indigenous tribes along the Pacific coast. This competitive pastime, which still holds deep cultural ties today, was both a social event and an opportunity to accrue wealth.
Despite the restrictions imposed by European colonization, the Canadian spirit of gambling has persevered, continuing to shape the nation’s sports betting landscape. This article delves into this fascinating journey through the annals of Canada’s sports betting history.
As Canada evolved into a more liberal-minded country, its government adopted a relaxed stance on gambling, with no known prosecutions for using online sportsbooks. A recent poll highlights this acceptance, as 74% of Canadians view gambling as either morally acceptable or not a moral issue at all.
As Canada developed, so too did its hunger for betting on live events, resulting in a flourishing bookmaking industry that stretched from bustling metropolises like Toronto to quaint port cities such as Halifax. This unregulated period came to a halt in 1892, when the Criminal Code of Canada was enacted, banning all gambling activities and imposing penalties on those who dealt with unlicensed bookies. Despite these restrictions, Canadians persevered in their love for sports betting, often placing private wagers in the more lawless frontier towns. The turning point arrived in 1969 when the Canadian government acknowledged the potential of gambling as a viable source of funding for various programs. This realization prompted a revision of the Criminal Code, granting federal and provincial governments the power to operate lotteries, with proceeds allocated to select charities and the 1976 Summer Olympics in Montreal. The immediate influx of funds spurred legislators to advocate for further amendments, paving the way for an expansion of gambling opportunities within their jurisdictions.
In the early 1990s, Canada’s sports gambling scene underwent a significant transformation when provincial governments introduced Proline and other sports lotteries, such as Sports Action and Mise-O-Jeu. However, due to the Canadian Criminal Code’s restrictions, single-game sports betting remained prohibited, leading to the implementation of parlay (multiple-game) betting. This format required bettors to make 3-6 accurate selections on one ticket to win their wager.
Initially, Proline and other provincial sports lotteries gained popularity for their convenience and advanced posting of odds, which allowed bettors to easily place wagers at local corner stores. However, dissatisfaction soon arose as the parlay requirement made winning increasingly difficult, and Proline’s betting odds, tie rules, and selection limitations frustrated bettors. The various Proline tie rules further complicated matters, depending on the bettor’s location. Additionally, low betting limits were imposed to protect provincial sports lotteries from liability, but this decision limited potential winnings for bettors.
As time went on, Proline’s selection of available games dwindled, with NBA basketball being removed from Ontario’s Proline betting offerings as a condition for the Toronto Raptors joining the NBA in 1994. Eventually, Proline ceased offering bets on games not played on the same day, further limiting options for bettors. These shortcomings led many Canadians to seek alternative betting platforms, ultimately driving them away from provincial sports lotteries.
The mid-1990s saw the Internet’s meteoric rise, opening up a world of new possibilities for communication and information access. Despite the Canadian Criminal Code’s restrictions on sports betting, the emergence of the Internet allowed Canadians to place bets through online sportsbooks based outside the country, which was, and still is, perfectly legal. The landscape of sports betting in Canada changed significantly with the establishment of Sports Interaction in 1997, founded within the Kahnawake Mohawk Territory near Montreal. This platform, along with other online sportsbooks, offered single-game sports betting at better odds and with more generous bonuses than provincial lotteries.
In 2000, Saskatchewan native Calvin Ayre launched Bodog, an online gambling site that further expanded the range of betting options available to Canadians. Other operators soon followed suit, setting up shop in locations like Costa Rica, Gibraltar, and the Isle of Man. These sites operated in a legal gray area, offering Canadians a wider selection of markets, attractive bonuses, and most importantly, single-event betting. As a result, Canadians increasingly gravitated toward these platforms.
However, distinguishing trustworthy sites from less reputable ones was challenging during the early days of the Internet. Resources like Covers emerged to help bettors make informed decisions in an era when unbiased wagering data was scarce. Provincial operators also entered the online space, with the British Columbia Lottery Corporation launching Playnow.com in 2004, followed by Quebec’s Mise-O-Jeu and Ontario’s Proline. This surge in betting options led to a significant increase in wagering among Canadians between 2010 and 2018. Estimates in 2014 suggested that Canadians bet $14 billion on sports annually, with only $500 million of that sum wagered through official provincial entities, highlighting the undeniable impact of online sportsbooks on Canada’s sports betting history.
The massive gap between amounts wagered through official provincial entities and offshore sportsbooks prompted astute Canadian legislators to pursue the legalization of single-event sports betting. Notable attempts, such as Bill C-290, passed the House of Commons with ease in 2012 but faced defeat in the Senate after years of intense debate. Persistent lawmakers finally achieved success with Bill C-218, The Safe and Regulated Sports Betting Act, in 2021. This legislation garnered widespread support from major political parties, sports organizations, and even the horse racing community, paving the way for a new era in Canadian sports betting.
Ontario and Nova Scotia were among the first provinces to embrace this change, launching their respective digital sportsbooks, PROLINE+ and the Atlantic Lottery Corporation (ALC), in 2021 and 2022. Ontario’s decision to allow third-party operators on April 4, 2022, marked a groundbreaking moment for the industry, attracting over a dozen private bookmakers like bet365, BetMGM, FanDuel, and PointsBet. With 34 gaming operators catering to Ontario’s population of 14.2 million, local bettors now enjoy a vast array of wagering options. Financial projections estimate that iGaming will generate a net income of up to $31 million by 2024-25 in the province.
Early data reveals strong performance for theScore Bet, bet365, and FanDuel in Ontario, while British Columbia and Prairie provinces have also reported impressive wagering figures since the enactment of Bill C-218.
However, not all big names have found success in this competitive market. Coolbet, a GAN Limited-owned operator, has chosen to exit Ontario’s sports betting scene while continuing operations in Canada’s gray markets. With the first year of legal sports betting in the province nearing its conclusion, Coolbet announced that it would shut down its sportsbook on April 3. The reason behind the closure lies in the highly competitive and promotional nature of the Ontario market, which failed to meet its desired return profile. Consequently, they opted to reallocate resources to higher-ROI opportunities. In addition, daily fantasy sports contests in Ontario have faced challenges as major providers DraftKings and FanDuel ceased offering free and paid contests before entering the regulated sports betting and online casino market. Spinago is another operator that decided to close its sportsbook doors in the face of these market conditions.
The history of sports betting in Canada has been a dynamic and captivating journey marked by continuous change and adaptation. From its origins with illegal bookmakers to the advent of Proline and other provincial sports lotteries in the 1990s, Canadians have consistently demonstrated their enthusiasm for sports wagering. However, the limitations of parlay betting and the emergence of the Internet catalyzed a shift toward offshore sportsbooks, ultimately compelling Canadian legislators to reassess the nation’s sports betting framework.
The tenacity of lawmakers, coupled with broad support from political parties, sports organizations, and even the horse racing community, led to the landmark passage of Bill C-218 in 2021, legalizing single-event sports betting in Canada. Since then, provinces such as Ontario and Nova Scotia have seized this opportunity, launching digital sportsbooks and welcoming third-party operators into the market. The strong performance of platforms like theScore Bet, bet365, and FanDuel, along with optimistic financial projections, points to a prosperous future for the industry.
As Canada continues to refine its sports betting regulations and capitalize on the potential of single-event wagering, the country is steadily progressing toward a more contemporary and comprehensive approach to sports betting. This evolution benefits not only bettors and the industry but also generates valuable revenue for the nation, signifying a new and exciting era in the history of sports betting in Canada.
If you gamble, please gamble responsibly.
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