In Alberta, they’ve passed a bill named the Red Tape Reduction Statuettes Act. This will now allow the provincial government to manage gaming activities separately from its regulatory body, the Alberta Gaming, Liquor, and Cannabis (AGLC). Now, Alberta is in a position to grow their gaming market and make it a competitive industry. The bill is part of Alberta’s ongoing review of the Gaming, Liquor, and Cannabis Act. Lawmakers want to ensure that this expansion is beneficial for all Albertans across the province.
Alberta plans to follow the path that Ontario has set for iGaming in Canada
With the new framework coming in Alberta, they want to shift the offshore market share toward licensed local operators. Currently, 55% of the market share is held by offshore sportsbooks. Minister Dale Nally said last month at the Canadian Gaming Summit that Alberta is looking to follow the framework that Ontario has set. This means that multiple licensed operators, both local and offshore, will be allowed to offer online gaming services. Private gaming operators can join the market and rival the lottery competition.
Offshore casinos will need to adapt quickly if they want to survive in Alberta. Dale Nally noted there will be competition between local and offshore markets. However, their goal is to shift the market towards regulated operators. This will ensure a more safe and responsible gaming market in Alberta. Gaming markets in Ontario took a similar approach when they first expanded their regulated market.
What challenges is Alberta expected to face trying to make the transition to a regulated market?
When Ontario first expanded its regulated market, it faced several challenges along the way. Alberta is expected to face similar challenges after following Ontario’s regulatory framework. First off is the grey market. With 55% of the market in Alberta coming from offshore markets, getting these players to switch to regulated markets will be tough. While these players have been using offshore markets, Alberta has been missing out on significant tax revenue. Additionally, Alberta needs to set a firm timeline for launching their regulated market.
It’s a time-consuming process and it took Ontario nearly a decade to establish their regulatory framework. Ontario’s iGaming market was the first of its kind in Canada and they took their time to make sure everything was set in place before they launched in April 2022. Alberta should take less time with their regulatory framework because they can use Ontario’s as a reference.
