After much anticipation, the Alberta Government has introduced a new bill that seeks to establish the province as Canada’s second regulated iGaming market.
Following in the footsteps of Ontario, lawmakers on Wednesday (26 March) introduced Bill 48, the iGaming Alberta Act, which proposes a framework to authorise and regulate sports betting and iGaming sites.
If passed, the new legislation will see the province create the Alberta iGaming Corporation to set rules for online casinos and safeguard users.
Grey market presence fuelling regulatory efforts
Currently, the only authorised option for players in the province is the government-run Play Alberta, a platform offering sports betting and iGaming overseen by the Alberta Gaming, Liquor and Cannabis Commission (AGLC).
However, Dale Nally, Minister of Service Alberta and Red Tape Reduction, told reporters that “we are seeing unregulated actors creep into our marketplace” that often do not implement appropriate player protection measures.
Nally continued: “Our goal is to reduce the size and scope of the illicit market by channeling unregulated operators into a regulated market where they are regulated and where consumers are protected and gambling safety is top of mind.”
Under the iGaming Alberta Act, operators will be required to provide consumer protection safeguards and social responsibility tools. Additionally, players will have access to a centralised self-exclusion system.
Revenue generator
Although Nally was keen to emphasise that player safety was at the heart of the new regulation, he also spoke about the potential economic benefits of a regulated market.
Play Alberta generated $235m in revenue last year, however, Nally estimated that this represents less than half of Alberta’s online gambling market, with the rest going to offshore operators.
“Without a regulated market, we are losing out on revenue being generated by unregulated operators. In fact, it’s going straight out of Alberta and often out of the country. This is revenue that could be reinvested into our province to benefit all Albertans,” said Nally.
“If we can capture those revenues and we can repatriate some of those dollars back into Alberta we’ll have the funds to be able to help and support Albertans.”
Although it is not yet clear how much revenue the province will keep from operators, if Alberta can successfully follow in the footsteps of Ontario, it may well be a lucrative avenue. iGaming Ontario’s annual report revealed that the jurisdiction generated $2.2bn in total gaming revenue during the last fiscal year.
Learning from Ontario
The legislation proposes similar measures to those that were introduced during the establishment of Ontario’s regulated market in April 2022.
Before launch, the Ontario government established iGaming Ontario, a new agency with which operators signed contracts that outlined their responsibilities.
In Alberta, Bill 48 proposes that the Alberta iGaming Corporation will “develop, undertake, organise, conduct and manage online lottery schemes on behalf of the Government of Alberta”.
Operators entering the region will need to register with the AGLC, similarly to how those in Ontario must register with the Alcohol and Gaming Commission of Ontario (AGCO), which also acts as the regulator of iGaming in Ontario.
Ontario is currently home to approximately 50 operators, including bet365, DraftKings and FanDuel, many of which are likely candidates to join the new market.
Bill 48 must now pass the legislature, however, Nally and the governing United Conservative Party hold a majority of seats in the provincial parliament.
Nally was reluctant to place a date on when he expects the Alberta market to be in operation, but suggested it could be as soon as “before the end of the year or even early next year”.
