Alberta could potentially offer low taxes to regulated sportsbooks in the future, according to the province’s Minister for Service Alberta and Red Tape Reduction Dale Nally.
Alberta currently has the lowest tax rate among provinces in Canada
Nally has been mandated by Premier Danielle Smith to assess the feasibility of opening up Alberta’s regulated online gaming and betting market to commercial operators.
At the Canadian Gaming Summit, Nally confirmed that the province will pursue an Ontario-style open licensed model. Similar to Ontario, the market will not be regulated by the provincial government.
Nally spoke with Canadian Gaming Business about the plans for the province and why Alberta is expected to offer low taxes to regulated sportsbooks.
“Albertans and Alberta businesses currently pay the lowest overall taxes in the country,” Nally said, when asked what he thought would appeal the most to operators.
“Our general corporate income tax rate is eight percent, some 30 percent lower than the next lowest province. We also continue to be a business-friendly province. Our strong focus [is] on Red Tape Reduction and eliminating the unnecessary processes and requirements that impede businesses, innovation, and investment.”
Dale Nally will provide a launch update for the province this fall
Albertans also have more disposable income because of the lower taxes.
“Since 2019, we have successfully eliminated 33 percent of all our regulatory requirements. We continue to have a strong focus on finding more ways to get out of the way of Albertans and Alberta businesses. Our higher incomes in Alberta, lower personal taxes, and no provincial sales tax also mean that Albertans have more disposable income.”
Because of the lower taxes in Alberta, sportsbooks and gamblers are more likely to do business within the province in the future. Plus, sports are ingrained into Albertan culture.
“But sports are also very much a part of our culture. Albertans show it through their support of our professional teams, as well as their respective community foundations,” Nally added.
“The 50/50 draws from the Edmonton Oilers, for example, often generate more than $2 million per game. [The Oilers have] raised millions for local charities and community groups during the regular seasons and playoffs.”
Alberta is slated to launch its regulated online gaming market in early 2025. In terms of timelines, Nally said he expects to have more details to share on the topic this fall.
