Online Gaming in US and Canada: What’s Legal and Where?

Online Gaming

Gambling is one of those activities that everyone will have different opinions on. If you throw in the word there will be 28 different opinions on the same- positive, negative, neutral, and every reason out of the bag. Some consider it a waste of time and money, while some consider it a status symbol to be at a place or activity like that. While having such mixed opinions, online casino games are widely popular. The online gambling industry thrives on these games where actual people chip in money and play against each other.

The online gambling industry is tightly regulated. Despite this, the sector is continuously discovering new methods to make the lives of its consumers simpler, while still complying with rules. Crypto payment systems are one of the most recent innovations on the market. Those who choose virtual assets instead of traditional currency may now readily utilize them in numerous countries for gaming purposes.

Gambling enterprises accepting virtual currencies need to guarantee they comply with all the rules of the countries they operate in. To aid with this effort, Sumsub has developed this post to cover crypto gaming rules in the US, UK, and Canada, with examples from numerous nations.

US vs Canada

Online gambling is legal in Canada. Regrettably, despite not officially outlawing this kind of gambling, the Canadian government does not provide internet casinos or sportsbook licenses. Across the border, every state in the U.S. is free to regulate online gambling and sports betting independently. States like New Jersey and Delaware have legalized both online casinos and sportsbooks.

If you live in a state like Oregon, you are permitted to legally wager online, but not to play casino games. Nevertheless, the third group of states has authorized only some casino games like poker, roulette, or blackjack.

The following states permit in-person and online casino games/betting: Nevada, Delaware, New Jersey, West Virginia, Pennsylvania, Rhode Island, Iowa, Oregon, Indiana, Illinois, Michigan, Colorado, and Washington D.C. States like Tennessee and New Hampshire only allow mobile gambling.

Moreover, it should be emphasized that while most states restrict gambling on college sports, Canadians, who gamble through offshore servers, do not have such prohibitions.

Even if Canadian players can legally join international casinos, these operators must obtain a valid license to operate in Canada. The Canadian Senate has only authorized gambling in 88 land-based and 32 internet casinos, but they still need to be licensed by the various provinces.

Hence, inhabitants of a specific Canadian province should first verify if their local government has legalized an offshore online casino before they may play.

Online Gambling Industry

Because many of the greatest online gambling industries for Canadians to utilize are situated offshores, there are no rules that dictate what games they can or cannot provide. They can offer slots from any European software vendor or decide to partner with US-based companies.

As a result, Canadians have no limits on which software provider’s games they can use. If Microgaming publishes a new slot in the Isle of Man, Canucks may play it instantly it is offered at their favorite online casino games websites.

Across the Southern border, however, online casino games aren’t created equally. Real-Time Gaming (RTG), Betsoft, and Scientific Games have permission to operate in the US.


Think about taking home the whole $7.5 million you won at an online casino. That’s a reality in Canada. A fortunate Canadian earned $7.5m playing the progressive slot Mega Moolah in 2015. And since Canada doesn’t tax internet gambling gains, he was entitled to spend the whole sum.

Things are different in the US. Taxation is compulsory regard of how much you win. Yet you may always claim deductions if online gambling is your way of life. Yet, the 25% ordinary tax most Americans pay after winning is too much for many gamers.

It’s a quarter of your profits taken away by the taxman. And depending on your gambling monthly income, it can be the difference between being a profitable or indebted casino player.