I am looking for advice relating to sports betting laws and regulations in Canada and selling sports betting tips to

Expert's Assistant chat

Customer: Hi there, I am looking for advice relating to sports betting laws and regulations in Canada and selling sports betting tips to people outside of Canada.
JA: Hi. Have you talked to a Canadian lawyer about this?
Customer: Yes, they didn't know the answer.
JA: What steps have you taken so far?
Customer: Reached out to a couple of lawyers who have said they can't help me.
JA: Is there anything else the Lawyer should know before I connect you? Rest assured that they'll be able to help you.
Customer: I am Canadian, I am open to incorporating in any country. From my understanding Criminal Code 202.1.e-j says this type of business is not legal, but does this mean legal to sell to Canadians or can I operate it and sell it to people outside of Canada?

Answered by ToLawyer in 7 mins 1 year ago

ToLawyer

10+ years of experience

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Expert in: Family Law, Legal, Estate Law, Real Estate Law, Criminal Law, Employment Law, Business Law, Consumer Protection Law, Bankruptcy Law, Traffic Law, Personal Injury Law.

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ToLawyer

7688 Satisfied customers

10+ years of experience

ToLawyer

10+ years of experience

7688 Satisfied customers

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ToLawyer, Expert

Welcome and thank you for choosing Just Answer! My name is***** am a lawyer in Canada and would be happy to assist you. I am sorry to hear about your legal troubles.

Please note that while I am a lawyer, I am unable to provide you with legal advice on this website and I can provide you with legal information only. We always recommend seeking professional representation with a licenced lawyer or paralegal in your province.

Finally, please be advised that I am working from my computer and may not always be available immediately. Rest assured, I will get to your response as fast as I am able.

Customer

Hi Jimmie!

Customer

Let me know when you've had a chance to read my question, or if I should repeat it here

ToLawyer, Expert

Yes I have. Let me take a look here.

ToLawyer, Expert

You cannot operate this type of business within Canada nor can you sell to people within Canada if you are outside of Canada.

ToLawyer, Expert

Both of those will bring your actions within the jurisdiction of the Canadian criminal code.

Customer

Thank you for the information. So even operating it within Canada but not selling to Canadian customers is not legal?

Customer

what defines operating within Canada? It is all a web-app, so is it dependant on where the servers are located? Or where I incorporate?

ToLawyer, Expert

There is no direct answer to this and it is on a spectrum - how is the money flowing in, where are the directors of the corporation, where is the management of the website done, where are the servers, where is the incorporation, what currency is being used etc.

ToLawyer, Expert

It is not legal to operate it within Canada, that is a clear violation of 202(1)(e)

Customer

Okay I see, so if I incorporate in the US, get a PO box and open a bank account there, servers hosted in the US as well, would this be enough to constitute being operated there?

Customer

Or so long as I am leading the company and reside in Canada does that make it a Canadian operation?

ToLawyer, Expert

Again, there is no black and white answer to this. If you manage the company within Canada, then it is likely a Canadian operation.

ToLawyer, Expert

Does that answer your question?

Customer

Well kind of, I'm looking to see how I would go about operating outside of Canada then? Do I need to physically be outside of Canada?

ToLawyer, Expert

Probably. It needs to be managed and operated outside of Canada and cannot be sold to Canadian citizens.

Customer

yeah the second part makes perfect sense, do you know what kind of lawyer would be able to help me best with legal advice for this type of problem?

Customer

setting up the business structure?

ToLawyer, Expert

You likely need a corporate lawyer that specializes in gambling laws.

Customer

okay perfect, ive just always heard of people launching off-shore companies and i thought that may have been a solution here, but i really dont understand how these structures work

Customer

it might just not be possible for me to do this right?

ToLawyer, Expert

It is unlikely that you will be able to do this.

Customer

okay sounds good thank you for the help!

ToLawyer, Expert

No problem.

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