September 13, 2024

Is Alberta the Next Ontario? How Alberta Online Casino Regulations Could Change Gambling in Canada

By Ijeoma Izuchukwu 

Alberta is ready to set up its Ontario-themed iGaming sector that’ll accommodate Canadian online casinos and sports betting. With Bill 16 receiving the Royal Assent, Alberta residents who couldn’t access the top minimum bet sportsbooks in Canada might be able to do so if things go according to plan.  

In Canada, the online gambling fever was relatively low. However, Ontario kick-started an iGaming revival after it launched its own legal online gambling market on the 4th of April 2022. As seen on an official iGaming Ontario report, a staggering $63 billion wagers were placed from the 1st of April 2023 to the 31st of March 2024. This timeline also witnessed a gaming revenue of $2.4 billion.  

With these astronomical figures recorded in the Ontario online wagering market, it’s no surprise that Alberta wants to join the trend and make massive amounts in wagers and revenue. This motive has led to legislation confirming Alberta’s plans to have an iGaming service similar to Ontario’s. Here’s what the Minister of Service Alberta and Red Tape Reduction, Dale Nally, had to say before the introduction and passing of the bill that sets the province on a path to creating its iGaming market: 

 “Alberta can be a leading hub for iGaming, with a strong emphasis on openness and a free market. We have low corporate taxes, streamlined regulations and high disposable incomes. These conditions will allow us to establish ourselves as a premier destination for the iGaming industry.” 

Below, we’ll take a look at what Bill 16 entails and what the Alberta online casino and sports betting scene will look like once it’s set into motion. Stay tuned. 

Alberta Passed New Bill Aimed at iGaming and Sports Betting

From the looks of things, there’s a legislative foundation that allows for some competition in the online casino and sports betting scene in the Western Canadian province of Alberta. It’s vital to note that before the introduction of Bill 16 (which we’ll be examining shortly) only the Alberta Gaming, Liquor & Cannabis Commission (AGLC) via its unique Play Alberta website was authorized to conduct iGaming activities. 

In May, the Alberta legislature passed Bill 16, tagged the Red Tape Reduction Statuses Amendment Act. Since this legislature received the Royal Assent (the Sovereign’s approval of a bill adopted by the houses of Parliament) shortly after its passage, it has become law. Bill 16 is aimed at conducting and managing the affairs of Alberta iGaming platforms that will open their doors to players within the province.  

This caveat essentially means that Alberta will allow third-party sites that have undergone several tests and are considered legitimate to offer gaming products and services within the Western Canadian province alongside the AGLC-owned PlayAlberta online casino and sportsbook, which the commission runs in place of the government. 

The introduction of Bill 16 paves the way for Alberta to create a new online gambling route, an assignment that Premier Danielle Smith tasked Dale Nally (minister of Service Alberta and Red Tape Reduction) with last year. For context, the former called on the minister to make Alberta a hub for online gambling and sports betting. Premier Danielle had directed Nally to form partnerships with other significant stakeholders to create a strong online gaming strategy. The end goal would revolve around revenue generation and responsible betting. However, Nally asserted that while Alberta’s interest in becoming a leading iGaming hub was high, this vision would be backed by streamlined regulations and low corporate taxes. 

In a press conference held on the 8th of April, 2024, Nally confirmed that Bill 16 would shed light on his ministry’s authority to enact policies associated with the alcohol and gaming markets when it directly impacted government revenues. He also added that the government alongside the AGLC will have the legal backing to direct all iGaming activities within Alberta. 

While Bill 16 is now law, there are steps that still need to be taken. According to Nicky Gocuan, Dale Nally’s press secretary, the government will enter into a meeting with the province’s 47 First Nations, which includes the six that are casino operators to seek their insight on the iGaming project set to commence in Alberta. Here’s what he said: 

“As part of our policy development process, and our move towards a more open regulated online gaming market, Alberta’s government will continue to examine best practices from other jurisdictions, including Ontario. As always, a key priority for the province is to ensure that any expanded iGaming model in Alberta prioritizes the best interests of all Albertans.” 

From the Bill 16 framework, it’s clear that there’s a legislative desire to actualize Ontario’s iGaming market in Alberta. For context, Ontario opened its online gambling sector to third-party wagering operators in April 2022. This market is operated and managed by the Alcohol and Gaming Commission of Ontario (AGCO) and iGaming Ontario (iGO). Additionally, there’s no limit to how many iGaming operators are permitted to compete within the province. As of Q1 2024, the official iGaming Ontario website stated that there were 49 operators and 72 gambling platforms available to residents within the province. 

Revenue-wise, Ontario online gambling sites generated a huge sum of $2.4 billion in revenue besides the wagering total of $63 billion, from the 1st of April 2023 to the 31st of March 2024. These figures represent a year-on-year increase of 71.4% (revenue) and 78% (bets).  

With the Ontario iGaming sector growth, it’s no surprise that Alberta wants to join the parade and enjoy similar dividends. Bill 16 comes after the province dedicated $1 million from its budget to review the Alberta Gaming, Liquor, and Cannabis Act, alongside all related regulations. As such, there’s a chance that we’ll see a distinct agency (just like iGaming Ontario) oversee online gaming-related activities within Alberta that’ll work alongside the AGLC as early as 2025. 

The managing director of Rush Street Interactive, Bruce Caughill, confirmed that Alberta is utilizing Ontario’s iGaming template during the SBC Summit North American Conference that was held in New Jersey. Here’s what he said: 

“There seems to be every indication that they’re simply going to white label the Ontario licensing regime. That’s sort of hope that you can transition right into the model if you’re already in Ontario.” 

That said, the Canadian Gaming Association President, Paul Burns, said during the Summit that Alberta has a stake in the highest per-capita gambling expenditure in Canada for years. Thus, iGaming companies looking to operate within the province and compete with the AGLC’s online casino and sportsbook offering – PlayAlberta – would need to have comprehensive offerings. Only time will tell if this line of thought becomes reality. 

What the Alberta Online Gambling Market Will Look Like

We aren’t fortune tellers to know how the online gambling market in Alberta will look like with the passing of Bill 16. As it stands, all we know is that rather than the Alberta Gaming, Liquor, & Cannabis Commission (AGLC) being the province’s sole iGaming operator via its PlayAlberta website, competition will be encouraged between the commission and other third-party platforms. Additionally, since $1 million was devoted to reviewing the AGLC Act and employing fitting strategies, there’s a chance that Alberta will have its distinct iGaming board like Ontario that’ll work alongside the AGLC itself.  

Since Bill 16 was created using the Ontario iGaming market blueprint, it’s likely that Alberta’s online gambling principles will mirror that of Ontario. If so, only casino platforms regulated and licensed by the Alberta iGaming Authority will be allowed to carry out online wagering-related activities within the province. Furthermore, these sites will be available exclusively for players within the province’s borders.  

Thus, we expect Alberta wagering destinations to ensure that players activate their GPS when signing up on their sites to prevent people outside the Western Canadian province from having illegitimate access to the platform. Online Casinos and sports betting sites that disobey this rule will face penalties, with the most severe being permanent license suspension. 

With the latest iGaming legislation in Alberta, emphasis will most likely be placed on betting and casino applications. Like in Ontario, this application would be distinct and tailored to suit the needs of Alberta iGamers. We’ve seen this play out multiple times. Some iGaming operators offer generic iOS and Android apps for other jurisdictions but have unique dedicated applications for their Ontario players.  

So, will Alberta become the second legal sports betting and casino market in Canada? Although there’s a Bill that has been passed, it’s more of a “wait and see” situation. However, if the iGaming legislation kicks off in this province, Alberta players will have a variety of third-party platforms to choose from besides PlayAlberta. Additionally, the province’s government will make huge revenues when multiple operators join its latest online gambling space. 

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