Alberta’s move toward a regulated online gambling market has prompted concern among several First Nations leaders who say the province has not done enough to address the possible impact on Indigenous-owned casinos and the community programs they support.

The province’s new iGaming framework is scheduled to launch on July 13, following passage of the iGaming Alberta Act last year. Under the new model, private online gambling operators will be permitted to legally offer sports betting and casino gaming in Alberta through a regulated market overseen by the Alberta Gaming, Liquor and Cannabis Commission (AGLC).

Provincial officials say the changes are intended to bring more online gambling activity into a legal framework. According to the government, an estimated 65 per cent of online gambling in Alberta currently occurs through unregulated sites.

Service Alberta Minister Dale Nally said the province plans to allocate two per cent of gross iGaming revenue to First Nations groups as part of the transition.

“This is part of economic reconciliation,” Nally said in an interview with CBC News. Gross revenue refers to bets placed minus winnings paid out and eligible deductions.

Several First Nations leaders, however, question whether the revenue-sharing arrangement will offset potential declines in casino income. Revenue generated by Host First Nation casinos currently supports community initiatives including housing, education, health care, seniors services, charitable causes, and religious programs.

Trevor Mercredi, grand chief of Treaty 8 First Nations, said many communities remain uncertain about the long-term effects of expanded online gambling. “To say that this is being looked at is something positive, it’s hard for us to see the positive in this right now,” Mercredi said.

Casino Operators Prepare for Digital Expansion

Alongside major gambling brands preparing to enter Alberta’s regulated market, some Indigenous-linked casino operators are also positioning themselves to participate online.

A registration list published by the AGLC showed 28 licensed operators as of May 15. The list includes major sportsbooks such as DraftKings and FanDuel, along with smaller entities connected to First Nations gaming operations.

Pure Casino Entertainment Limited Partnership, which operates under Indigenous Gaming Partners (IGP), has registered as an iGaming operator. IGP is backed by five First Nations and casino management company Sonco Gaming Inc. The group operates Pure Casino locations in Edmonton, Calgary, Yellowhead, and Lethbridge.

In March, IGP also announced an agreement to acquire Alberta casino owner Gamehost Inc., a move expected to expand its holdings to seven casinos across the province.

Another registered operator, River Cree iGaming Limited, appears tied to the River Cree Resort and Casino operated by the Enoch Cree Nation near Edmonton.

Industry observers say Indigenous casino operators may attempt to connect their physical casino businesses with online gambling offerings once the market launches.

Alberta’s approach follows Ontario’s competitive iGaming model, which began in 2022 and now includes more than 40 regulated operators. Several Indigenous-linked operators have already entered Ontario’s market or are preparing to do so.

The Connecticut-based Mohegan Tribe operates PlayFallsview in Ontario alongside its physical casino properties there. According to company financial filings, the tribe reported year-over-year increases in gross gaming revenue, deposits, monthly active users, and betting handle for its Ontario digital operations during the quarter ending March 31.

At the same time, some Alberta First Nations leaders continue to warn that more online gambling could reduce traffic at physical casinos located on reserve lands.

Leaders Seek More Consultation Before Launch

Alberta currently has six Host First Nation casinos operating on reserve land through the Stoney Nakoda First Nation, Alexis Nakota Sioux Nation, Tsuut’ina First Nation, Cold Lake First Nation, Enoch Cree Nation, and Louis Bull Tribe.

Economics professor Laurel Wheeler of the University of Alberta said even modest reductions in casino revenue could affect employment and local services in Indigenous communities.

“When you have a positive economic shock within a community, that can lead to higher wages initially and those higher wages can attract more people back to their home community, which can also be good for cultural preservation,” Wheeler said. “All of the different markets are interconnected and they’re all affected.”

Nally has argued that regulated online gambling may not necessarily reduce casino revenue because online betting already exists through offshore operators. “If they’re going to be cannibalized in the future, then they’re being cannibalized currently,” he said.

The minister also said the province does not intend to increase the two per cent revenue-sharing allocation if First Nations groups later determine it falls short. “The black market … is alive and well, and so, for that reason, we’re not committing to replace future dollars,” Nally said.

According to the Alberta government, consultations on the legislation included invitations to all First Nations in the province as well as land-based casino operators during the summer of 2024.

Mercredi said consultation efforts have not gone far enough and expressed concern about how the revenue-sharing funds will eventually be distributed.

“Two per cent is the number that they’re willing to share, but not share the rest of the details. It’s very concerning at this point in time because it has the potential to impact the nations,” he said. “There’s a lot of issues here, and we’d really like the province to come to the table and talk to the chiefs … so we can be a part of this process.”

Ontario Dispute Shapes Alberta Concerns

Developments in Ontario have added to concerns among Alberta First Nations leaders. Ontario initially excluded online gambling from its First Nations revenue-sharing model before later extending a 1.7 per cent allocation during the 2024-25 fiscal year.

The Mississaugas of Scugog Island First Nation (MSIFN) has since launched legal action against Ontario over revenue-sharing disputes and consultation concerns connected to iGaming expansion.

Chief Kelly LaRocca said Ontario moved forward with online gambling without fully addressing First Nations concerns. “Ontario … failed to consult and sort out iGaming arrangements with First Nations, including MSIFN, before initiating iGaming and before First Nations were impacted,” she said.

LaRocca also pointed to declining casino revenue following the opening of competing gambling operations. “The revenue that Pickering and iGaming generate for the Province of Ontario comes at the direct expense of MSIFN and economic reconciliation,” she said.

As Alberta’s July launch date approaches, First Nations leaders say discussions around consultation, economic impact, and revenue-sharing are likely to continue. “The province needs to take this seriously,” Mercredi said. “This has the potential to impact our nations.”