By Olivia Molcho
July 1st, 2025
BURLINGTON, ON
As in many other regions, online gambling in Canada has grown increasingly popular, with an estimated 75% of the country’s adults gambling in some form. Online casinos, in particular, have seen incredible growth, which can be partly attributed to the establishment of an online gambling legal framework in some provinces.
Ontario has become a hub of online gambling.
Since the launch of its legal gambling framework, Ontario has become a hub of online gambling activity. However, with offshore casinos still targeting players with enticing deals, many don’t realize they may be playing at a casino that isn’t licensed in the province.
While this may seem like an unimportant oversight, there are significant differences between legally licensed casinos in Ontario and offshore alternatives. These differences can have a material impact on gameplay, your gambling experience, and even your winnings.
So that you won’t get caught unaware, we’ve highlighted these differences and their impacts below.
The Legal Framework Behind Ontario’s iGaming Market
Before looking at these differences, it is important to note that Ontario is the only province within Canada with a fully regulated online gambling and casino market. While others may permit specific types of gambling online, they lack a regulator that oversees all aspects of gambling activity within the province.
The primary governing body within the province is:
- The Alcohol and Gaming Commission of Ontario (AGCO)
- Established in 1998
- The body was initially incorporated to control substances like alcohol
- Also responsible for ensuring that gambling was restricted where necessary and permitted where deemed fit
The turning point for online gambling in the region occurred in 2022 when a subsidiary of the AGCO, iGaming Ontario (iGO), was founded. Despite the AGCO retaining the responsibility of setting regulations and issuing licenses to local operators, the iGO is the body that enters into operating agreements with these operators.
As part of these operating agreements, the iGO manages the relationship between operators and regulators, encourages economic growth in the industry, and ensures continuous compliance with all existing and new gambling laws.
These duties include ensuring proper licensing has been obtained, all relevant background and financial checks conducted, and regular audits of games and security carried out. This ensures operators are transparent with players regarding odds, rules, and other pertinent items and holds operators accountable to provincial authorities.
Despite possibly having a license from alternative governing bodies, offshore operators are not subject to these rigorous standards within Ontario and, therefore, could operate within legal grey areas.
Payout Reliability and Financial Protections
iGO ensures that each operator segregates player funds from the platform’s operational funds.
Among the most significant differences between offshore operators and those licensed within Ontario is the assurance of payouts and protection of your finances. Because the prospect of winning a life-changing amount of money is one of the key attractions of gambling, this is a vital consideration for any player.
Online casinos licensed in Ontario are subject to regulations regarding how they store player funds, perform payouts, and communicate and process withdrawals. iGO enforces each of these regulations, which must be met in order for operators to stay licensed.
One of the most significant methods iGO uses to protect player funds is to ensure that each operator segregates player funds from the platform’s operational funds. This simple act ensures that, should a casino begin facing financial difficulties, your deposited funds are safe and cannot be used by the casino to cover its operational expenses.
More than this:
- iGO actively enforces that all licensed online casinos use trusted and reputable payment gateways that encrypt all transaction data and minimize the risk of data theft.
- Strict financial fairness standards also dictate that operators pay out winnings using these methods in a timely manner, consistently when required, and transparently in all withdrawal terms.
In contrast to the above strict regulation to protect your funds and winnings, offshore casinos may not be subject to similar rules and enforcement. Due to this, many complaints can be found online about operators who withhold payouts or endlessly prolong withdrawals, often with no valid reason given.
Game Fairness and Software Audits
Many question the fairness of the games an online casino offers, most often when they are losing. However, numerous third-party agencies, such as eCORGA, perform extensive independent testing and audits to ensure that casino games are fair.
While offshore casinos may or may not provide proof that their games have been proven fair through external audits, operators within Ontario have no choice in the matter. This is because the AGCO provides a strict mandate regarding game fairness and independent auditing.
This mandate states that only games from software providers vetted and approved by the AGCO may be offered on any licensed casino. As such, only titles developed by reputable companies within the iGaming industry are available to players.
In addition, all Ontario-based operators must provide independent certification for the random number generators (RNGs) used in their games. This step ensures that the core of each game, which decides if you win or lose, is justifiably fair and doesn’t grant the house an unreasonable edge.
Dispute Resolution and Consumer Recourse
Another significant advantage of playing at a licensed Ontario casino is that both iGO and AGCO provide resolution services for players who have exhausted all direct avenues when encountering problems with an operator. This recourse, not available with offshore providers, ensures that there is a governing body to which queries can be escalated when needed.
As part of their process of providing players with an avenue of recourse, the iGO and AGCO have the legal authority to launch investigations into complaints and provide mediation for disputes between players and operators.
Where the player is found to be correct, both bodies also have the authority to impose sanctions on operators, including enforcing payouts or fining operators who breach regulatory requirements.
Responsible Gambling Tools and Support Access
The final key difference between offshore operators and casinos operating legally in Ontario is that those within the province must actively promote responsible gambling. While many offshore operators also do this, there have been cases where international gambling brands have failed to provide adequate support or have taken advantage of at-risk players.
To combat this:
- Ontario casinos are subject to strict rules regarding how they encourage responsible gambling.
- These include the requirement to provide players with the tools to set deposit, loss, and wager limits.
- Enable time-outs and session reminders if they’re playing for too long, and to join a self-exclusion program that will bar them from playing entirely.
In addition to these tools, all online casinos are also required to provide easily accessible, direct links to organizations like ConnexOntario, which provide free counselling for those seeking support for problem gambling.
The AGCO also regulates how online casinos within the province advertise their services to potential players. While the gambling advertising landscape is relatively open at present, worldwide clampdowns on gambling advertising may result in stricter regulations in the future.
Conclusion
With so many offshore operators catering to Canadian players, choosing one based in Ontario might seem unnecessary at first. However, considering the many advantages offered by the province’s regulatory framework, playing at an offshore operator is not recommended.
Accessing only the best and tested titles, ensuring that payments are timely and conducted using trusted providers, getting access to mediation services and routes of recourse, and receiving addiction help when needed are only some of the perks of gambling with a licensed Ontario online casino.
These advantages easily outweigh any perks of using an offshore operator. They are helping the iGaming industry in Ontario flourish while providing local players with protection that cannot be found elsewhere.
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