ASome gambling commissions (who ensure gambling sites are operating legally) have rules stating that gambling sites cannot accept players from a specific country unless they're licensed to operate there.
Take PokerStars, for example. They operated in Australia using a loophole in the Interactive Gambling Act 2001. However, Australia passed a new law and the ACMA threatened to tattle on PokerStars' to gambling commissions.
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One of those commissions was the New Jersey's Division of Gaming Enforcement. They threatened to pull PokerStars' New Jersey license if they didn't cease operations in Australia.
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That'd have severe financial repercussions, so PokerStars stopped operating in Australia. Long story short, it's the same idea for gambling sites in Canada.