Alberta, Canada to open online gambling market to private operators

Jenny Ortiz September 4, 2024

SiGMA news

Alberta, Canada to open online gambling market to private operators

Alberta, Canada is preparing to open its online gambling market to private operators, following in the footsteps of Ontario. This strategic move aims to transform the province’s current grey market for online gambling into a regulated, billion-dollar revenue stream. Alberta will become the second Canadian province to allow private companies like FanDuel and DraftKings to operate legally, with the government taking a share of their revenues.

Ontario’s success in the online gambling market is evident, with the province generating $2.4 billion in gaming revenue last year. Before regulation, a significant portion of Ontario’s $1 billion annual wagers was funnelled through unregulated sites. However, after implementing a legal framework, 85 percent of bettors transitioned to legal platforms. Alberta hopes to replicate this success, capturing a larger share of the online gambling market and securing a stable revenue source.

Capturing the illicit market

Currently, Alberta’s only regulated online gambling platform is Play Alberta, operated by Alberta Gaming, Liquor and Cannabis (AGLC). However, many gamblers continue to use offshore sites in the unregulated “grey market.” The introduction of Bill 16, the Red Tape Reduction Statutes Amendment Act, allows Alberta to regulate and oversee iGaming activities, paving the way for private operators to enter the market.

The provincial government is in the consultation phase, gathering input on how to structure the expanded online gambling market best. The goal is to create a safer and more responsible gambling environment while recapturing the market share lost to illicit operators. The government is keen to avoid repeating Ontario’s pre-regulation challenges, where unregulated gambling sites dominate the market.

Addressing public concerns and safeguards

While the financial benefits of expanding Alberta’s online gambling market are clear, there are growing concerns about the potential social harms, particularly among vulnerable populations. Experts caution that the expansion could lead to increased gambling addiction, financial hardship, and other negative consequences.

To mitigate these risks, Alberta is exploring strict regulatory measures, including self-exclusion programs and mandatory loss limits for players. These tools are designed to help individuals control their gambling habits and prevent the escalation of problematic behaviours. The government is considering implementing provincewide self-exclusion options and monitoring betting patterns to identify risky behaviours early.

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