CasinoCanada’s latest research argues that social casino games and some event-based products are testing the limits of a Canadian gambling regime designed around casinos and sportsbooks. But its broad conclusion that the fastest-growing formats sit outside gambling law does not apply straightforwardly to paid fantasy sports, which are regulated as wagering in Ontario and Alberta.
The analysis, reported by iGamingBusiness, frames the distinction around three elements it says are required for gambling under Section 206 of the Criminal Code: prize, chance and consideration. Removing one puts an activity outside that definition, according to the research. It also says Canadian courts have rejected a “predominance” test, meaning an activity can qualify as gambling where chance is present even if skill is an important component.
Ontario’s Alcohol and Gaming Commission treats paid fantasy contests as sports betting and requires operators serving Ontario players to be licensed. Its rules define the products as pay-to-play contests involving virtual teams made up of real athletes, and require Ontario-only player pools. The ring-fenced model led several large daily-fantasy providers to leave the paid-contest market when Ontario opened its regulated iGaming market in April 2022. FanDuel and DraftKings became licensed sports-wagering operators but stopped offering daily fantasy in the province.
Alberta began permitting paid fantasy contests as iGaming on July 13. Its compliance guidance says fantasy sports involve wagering and elements of chance despite their skill component, and its approach closely follows Ontario’s. A separate legal analysis notes that no Canadian court has settled whether athlete performance supplies the kind of chance required by the Criminal Code, while only Ontario and Alberta have written rules specifically addressing fantasy sports.
Social casino games present the clearer example in CasinoCanada’s account. These games use virtual credits rather than money or another item of monetary value, and the research describes them as legal and unregulated nationally. Research And Markets valued the social-casino sector at $10.08 billion in 2026, while research by Kim and colleagues found that 62% of online gamblers began with social casino games.
CasinoCanada also classifies prediction markets as financial derivatives under securities law. As reported in August, however, Canadian securities regulators said sports and entertainment event contracts should not be regulated under securities or derivatives law, leaving an important qualification to that claim. A July survey by The Logic found that almost 58% of respondents opposed legalising prediction markets.
The research cited a November 2025 report by Greo Evidence Insights, the Canadian Centre on Substance Use and Addiction and Mental Health Research Canada, which found that about one in three Canadians aged 18 to 29 had gambled online in the preceding year. Eugene Ravdin, quoted in the analysis, said Ontario and Alberta’s frameworks address the licensing and taxation of casino-style operators but do not resolve how fantasy contests, free-to-play slots apps and event contracts should be handled.
The Supreme Court of Canada is scheduled to hear arguments on Oct. 7 in a case concerning whether Ontario can allow players to join pools with people outside Canada while managing its side of the scheme.
