Online Gambling Ads in Canada: Rising Threat of Fraudulent Practices

As online casino advertising becomes a regular part of browsing, Canadians are increasingly being exposed to fraudulent ads that deceive and compromise their personal and financial security. These misleading ads often use the branding of legitimate casino brands to direct consumers to fake websites, putting them at risk of identity theft or financial loss. This problem, which has recently drawn attention from law enforcement, regulators, and affected gambling companies, is not unique to Canada, but is a growing global concern.

Fraudulent online casino ads typically use the names and branding of reputable gaming companies to mislead users. These deceptive ads often lead to fake websites designed to steal personal information. For example, in Ontario, the trusted Casino Rama’s name was used to promote a gambling site based in Curaçao, operating outside Canada’s regulatory framework. Similarly, the British Columbia Lottery Corporation (BCLC) issued public warnings about scams using its logo to falsely promise exclusive bonuses to those who clicked on the advertisements.

According to Paul Burns, CEO of the Canadian Gaming Association (CGA), nearly every casino brand in Canada has had its name misused in fraudulent campaigns. The frequency and sophistication of these scams have grown, making it even more difficult for regulators, operators, and the public to protect themselves.

Chuck Keeling, EVP of External Relations at Great Canadian Entertainment, highlights that the root of the problem is consumer confusion. Many people are unaware of legitimate gaming platforms, making them vulnerable to fraud. Keeling stresses that operators like Great Canadian Entertainment never ask for personal or financial information via direct messages, yet fraudulent sites use these tactics to steal sensitive data.

This issue has been exacerbated by misleading ads, such as those falsely using the branding of “Woodbine Casino,” despite the fact that the venue rebranded to Great Canadian Casino Resort Toronto in 2023. With Ontario’s iGaming regulations requiring all commercial casinos to display the iGaming Ontario logo, not all consumers are aware of these rules.

Fraudulent advertising affects not just consumers but also harms the reputations of legitimate operators whose names are hijacked by scammers. Keeling points out that the greatest victims are the consumers who fall prey to these scams. The widespread nature of the issue has resulted in many complaints from individuals who have lost money to fraudulent casinos. Unfortunately, as Keeling notes, once the scam has been carried out, operators can do little to help.

In addition to fraudulent gambling ads, Canada has seen a sharp rise in digital fraud attempts, with the gambling industry being the most affected. A recent report from TransUnion showed that digital fraud attempts from Canada rose by 11% in the first half of 2024 compared to the same period in 2023, with the gambling sector seeing a 9.6% fraud rate. This surge highlights the increasing threat of fraud in Canada’s gambling industry, putting both consumers and businesses at risk.

The rise in gambling-related fraud is particularly alarming, as it grew by 79.3% compared to the previous year, making it the second-largest increase among Canadian industries. With Canada’s gambling sector facing a higher fraud rate than the global average, industry leaders are calling for stronger measures to protect both consumers and businesses from evolving fraudulent schemes.

To tackle this growing problem, operators are working closely with law enforcement to take both reactive and proactive steps to shut down fraudulent websites. Great Canadian Entertainment, for example, regularly scans media for suspicious ads and collaborates with law enforcement. Local authorities in British Columbia are also investigating social media scams that use casino branding to mislead users.

However, as Keeling points out, without increased involvement from tech companies like Meta and Google, fraudulent ads will continue to spread. While Meta has imposed stricter requirements for gambling advertisers, the industry remains concerned that these efforts may not be sufficient to fully address the issue.

Affordability checks have been a growing discussion in gambling regulation globally. While affordability checks are still unlikely in Canada, the UK’s recent developments raise questions about whether similar measures could be introduced here in the future. The UK Gambling Commission’s pilot program for affordability checks is designed to address problem gambling by monitoring financial thresholds.

In Canada, regulators have focused more on monitoring gambling behaviors and enforcing strict responsible gambling measures, such as requiring operators to track and intervene with players showing signs of harmful behavior. Ontario’s Alcohol and Gaming Commission (AGCO) has been particularly strict, levying significant fines for operators failing to comply with these measures.

However, some concerns remain within the industry. Operators worry that affordability checks could drive players toward unregulated gambling sites, where such restrictions don’t apply. A survey showed that players were already reluctant to provide personal financial documents, and many would prefer unlicensed platforms if affordability checks became standard.

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The need for tighter controls on advertising platforms and the introduction of more rigorous measures like affordability checks is evident. Keeling argues that the online casino industry is locked in an ongoing battle with fraudsters, and only through better regulation, informed consumers, and stricter oversight from tech companies will this issue be adequately addressed.

Source:

, casinoreports.ca, July 23, 2025