I have a few questions regarding running a Bitcoin gambling website online.
I am located in Canada. So I'm not sure if it's legal for me run a site like this online from within Canada.
If it is legal for me to host the site else where, where is it possible for me to host it and do I need to get it licensed or it's okay to operate without a license since it's crypto.
You need to register your business. You are making profits here so you need to be legalized even you are operating in crypto. But if you are brave enough to avoid the regulations, then risks it since you are just a small site for now. But when you noticed that there is an increase in players, you need to make things legally.
Second, it's not just about legality but you must also provide your bankroll details via showing your signed address with funds.
I agree. There are people who are running online gambling in restricted countries. They have found ways to pursue it but if you want legality, then try to get a license first and you'll only find out if gambling is restricted in your country or not.