Notwithstanding what the Queen's Counsel had to say about section 207 as cited above, you will find that section 207 of the Canadian Criminal Code deals with lotteries and:
"207(4) Definition of "lottery scheme"
(4) In this section, "lottery scheme" means a game or any proposal,
scheme, plan, means, device, contrivance or operation described in any
of paragraphs 206(1)(a) to (g), whether or not it involves betting,
pool selling or a pool system of betting other than
(a) a dice game, three-card monte, punch board or coin table;
(b) bookmaking, pool selling or the making or recording of bets,
including bets made through the agency of a pool or pari-mutuel
system, on any race or fight, or on a single sport event or athletic
contest; or
(c) for the purposes of paragraphs (1)(b) to (f), a game or proposal,
scheme, plan, means, device, contrivance or operation described in any of paragraphs 206(1)(a) to (g) that is operated on or through a
computer, video device or slot machine, within the meaning of
subsection 198(3)."
So bookmaking is "other than" a lottery and it would appear is not covered by section 207. I find no other reference to bookmaking in the Federal Criminal Code.
Now it is quite possible the QC was rendering an "opinion".
Now lotteries are carefully defined as to when they are legal. It appears bookmaking is not so defined but neither does it appear to be prohibited.
Books on Indian reservations take bets from Canadians and also host a large online casino business that the Federal Government have chosen to ignore.
Books off Indian reservations do not take bets from Canadians, probably mostly to protect themselves.