Canada Forms CARG Alliance to Combat Illegal Online Gambling

A new chapter in gambling regulation is beginning in Canada. The former Canadian Lottery Coalition (CLC) has officially transitioned into the Canadian Alliance for Regulated Gaming (CARG). This move represents far more than just a name change; it is a strategic repositioning to meet the increasingly complex demands of the digital age. The new alliance serves as a national not-for-profit association and aims to act as the voice for the entire legal and regulated sector in the country. The primary focus is to curb the growth of illegal online offerings, which have increased significantly in recent months.

The founding members consist of publicly owned lottery and gaming organizations. These entities are characterized by returning all their profits to their respective provinces to fund critical public services. However, the market landscape has shifted. New technologies, aggressive advertising strategies, and the rise of so-called prediction markets are putting pressure on regulated operators. Molly Cormier, serving as the Executive Director of CARG, sees this new structure as an opportunity to finally establish a coordinated policy across provincial borders.

Numbers and facts

The urgency of this initiative is highlighted by the current market situation. Previously, provinces often acted in isolation, which provided loopholes for illegal operators. CARG was officially launched on October 5, 2026, in Moncton, New Brunswick. A central aspect of the new alliance is the expansion of its membership. While previously only state-owned lottery corporations were represented, CARG is now open to all organizations operating within the legal and regulated ecosystem. This potentially includes private operators, provided they function under state supervision and contribute to the public good.

A significant focus lies on public education. CARG has already launched a new website at carg-ajcr.ca to provide information regarding its mandate and policy positions. It is clear that topics such as player health and strict consumer protection are at the top of the agenda. The alliance is also responding to international trends, where the regulation of prediction markets is increasingly becoming a focus for courts and supervisory authorities.

Background

The transformation from CLC to CARG reflects the rapid evolution of the Canadian market. Especially since some provinces opened up to private online providers, the need for national coordination has grown. The challenges are diverse: from enforcing advertising restrictions to fighting operators acting from abroad without a Canadian license. Molly Cormier emphasizes that the protection of citizens must remain central.

"Canada's gambling landscape is changing at an unprecedented pace, while illegal and unregulated operators create growing risks for consumers and communities. Canadians must be at the centre of how we respond. By bringing together governments, regulators and industry leaders, we can help ensure the public interest continues to drive the future of gambling policy in Canada." - Molly Cormier, Executive Director of the Canadian Alliance for Regulated Gaming

Why it matters for German players

For German players, the development in Canada is an interesting reflection of the local situation. In Germany, the State Treaty on Gambling 2021 (GlüStV 2021) regulates the market. Similar to CARG in Canada, the Joint Gambling Authority of the States (GGL) in Halle fights against the black market. Anyone wishing to play safely in Germany must strictly adhere to the GGL whitelist. German players are subject to strict protective measures, such as the cross-operator deposit limit of 1,000 euros per month and the stake limit of 1 euro per spin on virtual slot machines. These rules are monitored via the LUGAS system. The Canadian initiative shows that the global trend is moving toward stricter monitoring and cooperation. German users should avoid offers without a German license, as there is no legal protection from domestic authorities.

What it means for GGL-licensed casinos

Casinos with a German license from the GGL can learn from the Canadian alliance that a strong industry voice is essential to build trust with regulatory authorities. For licensed operators, stricter enforcement against illegal markets means a fairer competitive environment. When illegal competitors without stake limits or taxes are pushed out of the market, it strengthens legal business. Operators active in Germany must continue to prove they take player protection seriously to secure their licenses long-term. CARG relies on evidence-based policy, which could also serve as a model for German operators to support regulatory adjustments through scientific data.