Alberta as second regulated Igaming market in Canada

Alberta Will Become the Second Canadian Province to Regulate A Private Sector iGaming Market

There has been significant speculation about the timing of the launch of Alberta's private sector iGaming market. Initially, it was hoped that the market would be live at the backend of 2024 and then early 2025. However, as we now move into the second half of the year, the news is that the launch will occur, but it now appears unlikely to happen before 2026.

Alberta is Canada's fourth-largest province by population, and its residents have a higher-than-average disposable income. Like a huge percentage of Canadians, they are keen gamblers. A recent Ipsos poll found that 33% of the adult population had been involved in some form of online gambling for real money within the last three months. Interestingly, while the only regulated gambling portal in the province is PlayAlberta, the pollsters found that only one in ten Albertans gamble online exclusively using the government-run site. Twelve percent were found to use a combination of regulated and unregulated sites, and over three-quarters of online gamblers play on unregulated offshore sites.

iGamers confused about regulation

People polled were confused about regulations, and the majority believed that the sites they were playing on were regulated. Therefore, it is unsurprising that lawmakers are keen to create a level playing field and bring people across from unregulated to regulated sites. The commercial partners are also enthusiastic, as the province promises healthy returns for licensed operators.

However, progress is moving relatively slowly because numerous obstacles must be overcome. The irony is that the government department championing the changes has red-tape reduction in its name. However, it seems to be getting caught up in its own red tape. The government is keen to ensure that launching the market does not harm existing land-based operators and does not cannibalize the existing PlayAlberta market.

Finalizing the details

Dale Nally, Minister of Service Alberta & Red Tape Reduction, recently announced that the government aims to finalize advertising and tax rates decisions by this autumn, saying:

"In terms of timeframes, I cannot give you a month, but I can tell you early next year we are going to be cutting the ribbon on iGaming Alberta. We are very excited to be able to offer that, and we are going to have more to share with you in the near future."

Casino.org's Jemma McColgan believes it's an exciting time to be an online casino player in Alberta, as she explained to us,

"There is going to be even more choice for players to find safe and fun sites to gamble on. Albertans have been gambling online for over two decades, and commercial operators will now be able to fully invest in this market, bringing new, exciting, and innovative gaming to the province. Our expert team will be looking out for all the developments and rating and ranking the sites to our usual high standards."

Open competition

The passing of the iGaming Alberta Act authorizes private sector online casinos and sportsbooks to compete against each other and Play Alberta for customers. They will need to adhere to a strict regulatory framework to be eligible for a license. Significant interest is expected, particularly as the existing offshore market operations account for such a high portion of existing gambling activity. The challenge for iGaming Alberta will be to persuade people to transfer from one sector to the other

The move is anticipated to attract significant attention, considering that the province's existing grey and black-market operations account for a substantial portion of online gambling activity. Ontario has achieved a very high level of success, with over 70% of iGamers in the province now playing on regulated sites. The advantage for the players is additional levels of security; the advantage for the state is lucrative revenue. It is generally accepted that the move will not create new gamblers, but will create a better environment for all involved.

Critical for some

Meanwhile, some online operators are 'betting the house' on this new market. Australian online gambling operator PointsBet says it is a 'critical' market for them. After they withdrew from the US market last year, Ontario is currently the only market outside of Australia where PointsBet offers sports betting and online casino. Their Canada CEO, Scott Vanderwel, told reporters,

"We see Alberta as not just another market, but as a critical region that can help shape our future. Alberta is a key part of our growth strategy in Canada. We plan to offer a full casino product from day one".

Nally adds: "Alberta represents a potentially lucrative market," referencing the millions of dollars bet on 50/50 contests during Edmonton Oilers' ice hockey playoff games.

Avoiding the pitfalls

Alberta will become the second Canadian province with a regulated private sector iGaming market, and will be hoping to follow in Ontario's success. Ontario established iGaming Ontario to bring about its market launch; Alberta has similar plans for the Alberta iGaming Corporation. Ontario had the relative luxury of moving from unregulated to regulated in one fell swoop. Alberta, like British Columbia, has the added complication of a province-run competitor. However, it also has the advantage of trying to learn from any mistakes that Ontario made.

One of the battles that iGamingOntario faced was legal challenges from the Mohawk Council of Kahnawà:ke (MCK), which argued that iGaming Ontario's (iGO) structure, which involves private operators, did not meet the Criminal Code's stipulation regarding provincial governance of online gaming. While the case was dismissed in the Ontario Superior Court, Alberta is keen to avoid similar challenges.

Therefore, extensive consultations have been conducted with stakeholders, including potential iGaming operators, First Nation tribes, and retail casino companies. There is also dialogue to address advertising and marketing rules, including whether athletes and celebrities will be allowed to appear in iGaming marketing materials. With Canadian rapper Drake being one of the gambling industry's major advocates, the yet-to-be-announced rules will significantly impact how commercial operators work with influencers and other interested parties.

Let the games begin

Albertans are just itching for the red tape to be cut and the virtual casino doors to be flung open.