Alberta sets stage to regulate private online gambling companies
Offshore websites like Bet365 and Bodog are already available in Alberta on 'grey market’
The Alberta government is preparing to open the province's online gambling market to private companies like Bet365 in a bid to regulate more of the industry and capture revenue currently headed elsewhere.
Up until now, the Alberta Gaming, Liquor and Cannabis Commission (AGLC)-run Play Alberta was the only regulated online gambling website in Alberta.
But players could still gamble on the so-called "grey market" — referring to offshore gambling websites like Bet365 and Bodog, that aren't officially licensed by the province but are still accessible to Alberta residents.
Proposed legislation tabled today, called the iGaming Alberta Act, would create a new Crown corporation, the Alberta iGaming Corporation, to oversee the new market and put the AGLC in charge of regulation.
The goal is to bring more players into a legal system, add consumer protections like self-exclusion tools, and keep gambling revenue in the province rather than lose it to unregulated or offshore sites, according to Service Alberta and Red Tape Reduction Minister Dale Nally.
The province has said it took inspiration from a model already in place in Ontario. Ontario was the first province to allow a regulated sports betting program in 2022, allowing multiple operators to provide gambling services.
"Albertans have said to us, why don't you do the same here? Why don't you put in place safety measures? Why don't you stop the money from leaving the province, and keep some of it in Alberta?" Nally said in an interview.
In addition to the "grey market," there's also the "black market," which Nally said includes those websites with no intention of ever becoming legal that will sometimes continue to market to players even should they indicate they have developed an addiction.
"To be clear, gambling is never safe, but you can make it safer. And that's what we're going to do," Nally said.
The Alberta government had previously passed legislation and held consultations opening the door to the possibility of regulating and overseeing iGaming activities.
Player protection and addiction
In Ontario, online gaming platforms generated $2.2 billion in total gaming revenue in the second year the market was in operation, according to iGaming Ontario's 2023-2024 annual report.
It has also kicked off a debate in that province around whether increased levels of advertising have led to an increase in gambling addictions.
"There has been an explosion of … in our view, unregulated ads, which have led to a huge increase in gambling, sports betting and related addictions," Bruce Kidd, co-chair of the Ban Ads for Gambling campaign, told CBC Toronto earlier this month.
The province says it can set rules for how registered gambling companies advertise in Alberta, like limiting certain types of promotions. But it's a different matter for ads from companies based in other provinces or countries, especially those shown on national TV or online.
"We don't control the advertising, the CRTC does. And so that's part of the challenge that we have, is that iGaming is alive and well," Nally said.
WATCH | Ontario online gambling industry generates billions in revenue:
David Hodgins, a professor of clinical psychology at the University of Calgary and research director with the Alberta Gaming Research Institute, emphasized the need for clear guardrails and policies, particularly around advertising and player protection.
He said any expansion of gambling has the potential for increasing the numbers of people who are affected negatively.
"With an expansion, the devil is in the details. I really think we need to take a very cautious approach in terms of what safeguards we put in place and how we do that," Hodgins said.
"Most importantly, I think that we monitor that what is put in place is really effective in minimizing the harms that are caused by gambling."
Hodgins had previously identified several ways Alberta could implement stronger guardrails around its online gambling landscape. That would include mandatory pre-commitment limits — requiring players to set a maximum amount of money they're willing to spend before they start gambling.
He also called for universal self-exclusion tools that would apply across all gambling platforms. Those tools would allow players to block themselves from all gambling sites and venues at once, not just one.
The province said that should the iGaming Alberta Act pass, a central self-exclusion system would be implemented. That would allow Albertans to restrict their participation across all regulated sites, as well as land-based casinos and horse racing facilities with casino elements.
Other details around additional guardrails and what revenue splits with operators will be set at will be detailed in the coming months, Nally said.
Charities had voiced concern
After Alberta initially outlined its plans last year, local charities and traditional casinos voiced concern about a new landscape dominated by iGaming websites.
"We think the Ontario model will be very damaging to casinos in Alberta and charities will lose out significantly as a result. We think that's going to be a disaster and they need to take the time to get it right," Michael Thompson, executive director of the Alberta Charitable Casino Operators, said in November.
From 2023 to 2024, the province gave $409 million to charities, with $79 million raised by host First Nation charities, according to the AGLC.
"I've heard comments that online gaming is going to cannibalize the charities. The fact is, they already are," Nally said.
"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."
The province has estimated that, at present, its Play Alberta website captures around 45 per cent of the market share. In 2023-2024, $235 million was generated through Play Alberta, an increase of $42 million from the year prior.
Nally said he anticipated that the new arrangement would be operational later this year or early in 2026.
ABOUT THE AUTHOR
With files from Tyler Cheese