Canada Five Years After Legalizing Single-Event Sports Betting: Open Markets, Provincial Monopolies, and a Patchwork Model

Canada’s 2021 reform did more than legalize single-event sports betting. It turned the country into a live test case for high-risk payment flows: some provinces opened the door to private operators, others kept state monopolies, and the result is a fragmented market that still matters to PSPs, acquirers, and banks deciding where risk sits.

1. Bill C-218, the Safe and Regulated Sports Betting Act, entered into force on 27 August 2021 and changed the Canadian Criminal Code to allow regulation of single-event sports betting. The federal reform did not impose a single national model; it gave each province the power to decide how to run its own gaming market.
2. Before 2021, Canadian law largely restricted sports betting to parlay-style wagers. That left a gap between legal supply and actual demand, while international platforms offered live betting, specialized markets, real-time statistical analysis, and a more competitive user experience. In practice, that pushed a large share of play offshore.
3. According to the Canadian Gaming Association, around C$14 000 million a year was diverted to illegal operators. For payments teams, that number is the whole story in one line: demand existed, regulated supply lagged, and unregulated channels absorbed the volume instead of domestic licensed operators.
4. Ontario became the clearest reference point after the national reform. On 4 April 2022, the province launched its regulated iGaming market and allowed private operators to compete under public supervision. The framework relies on two institutions, including the Alcohol and Gaming Commission of Ontario (AGCO), which is responsible for oversight.
5. The broader Canadian model now combines open markets, state monopolies, and new liberalization projects. For high-risk PSPs, that means market access is province-specific, and the regulatory question is not whether Canada is open or closed, but which province, which structure, and which licensing path applies.