The Alberta government is advancing plans to regulate online gambling by opening the market to private operators, an effort that officials say will enhance player protection and reclaim revenue that is currently being lost to offshore companies.

A new bill, the iGaming Alberta Act, was introduced by Service Alberta Minister Dale Nally, proposing the creation of a Crown corporation called the Alberta iGaming Corporation. This entity will oversee regulations, ensure player safety, and manage private-sector involvement in online gambling within the province. The Alberta Gaming, Liquor and Cannabis Commission (AGLC), which currently operates the government-run Play Alberta website, will continue to act as the industry regulator.

Addressing the “Grey Market” and Retaining Revenue

Currently, Play Alberta is the only regulated online gambling platform available in the province, but offshore websites, such as Bet365 and Bodog, remain accessible to Albertans. These unregulated platforms dominate the market, leading to significant revenue losses for the province. Nally emphasized that while online gambling is already widespread, regulation will help ensure that companies operate under Alberta’s laws and contribute financially to the province.

“The reality is that online gambling is alive and well in this province,” Nally stated. “Let’s suppose this legislation doesn’t pass; that won’t stop online gambling from continuing to grow.”

The financial impact of unregulated online gambling is substantial. AGLC data indicates that in the 2023-2024 fiscal year, Play Alberta processed $5.3 billion in wagers, a 21% increase from the previous year, generating $235 million in government revenue. Despite this growth, the province estimates that Play Alberta accounts for less than half of the total online gambling market. With regulation, Alberta aims to recapture these lost revenues and reinvest them into local initiatives.

Learning from Ontario’s Model

Alberta’s initiative draws inspiration from Ontario, which became the first province to regulate private online gambling operators in 2022. Since launching its competitive market, Ontario has seen more than 40 operators register under provincial oversight, generating over $35 billion in wagers during its first year.

Nally pointed to Ontario’s success, suggesting that many operators would be willing to comply with Alberta’s regulations. “It’s a simple case of ‘If you build it, they will come,’ and we know this because they told us that,” he said, according to The Canadian Press.

While the legislation seeks to bring operators into a legal framework, Nally acknowledged that some “black market” entities, which have no intention of complying with regulations, may continue to operate outside the law.

Safeguarding Players and Addressing Addiction Concerns

A critical component of Alberta’s plan is ensuring player protection through new safeguards. One measure already confirmed is a self-exclusion program, allowing problem gamblers to voluntarily ban themselves from both online and physical casinos. Similar programs are currently in place in other jurisdictions, including Ontario.

David Hodgins, a clinical psychology professor at the University of Calgary and research director at the Alberta Gaming Research Institute, underscored the importance of stringent safeguards. “The abundance of caution kind of approach, I think, is warranted,” he said, adding that gambling can lead to severe financial and social consequences for a significant minority of players.

Hodgins advocated for additional safeguards, such as mandatory spending limits and tracking gaming behaviors to identify problematic patterns. He stressed the need for continuous monitoring and adaptation of regulations to minimize gambling-related harm. “For a product like this that’s potentially harmful, we really should be doing close monitoring of what the impact is,” he said.

Balancing Economic Benefits and Charitable Concerns

The proposed changes have sparked concerns among local charities and traditional casinos, which fear losing revenue to iGaming operators. In 2023-2024, Alberta distributed $409 million to charities, with $79 million coming from First Nation charity initiatives. Some groups worry that allowing private operators could divert funds away from these important causes.

Michael Thompson, executive director of the Alberta Charitable Casino Operators, voiced his concerns last year, warning that the Ontario model could significantly impact Alberta charities. “We think that’s going to be a disaster, and they need to take the time to get it right,” he said.

Nally countered these concerns by highlighting that unregulated online gambling is already drawing revenue away from charities. “That money is leaving the province. We’re saying, since it’s happening, let’s have it happen in a safer format than it currently is. And let’s keep some of the revenues to stay in the province,” he explained.

The timeline for implementation remains uncertain, though Nally suggested the new system could be operational by late 2025 or early 2026. With a majority in the provincial legislature, the governing United Conservative Party is expected to pass the bill with relative ease.