Alberta wagers allowing more online gambling operators will capture illicit market

Alberta will soon expand its online gambling landscape to allow multiple players to operate legally, moving closer to a model used in Ontario. 

At present, the only regulated and legal online gambling website in the province is Play Alberta. It includes casino-style games, live dealer table games as well as sports betting, and is operated by Alberta Gaming, Liquor and Cannabis (AGLC).

But in May, the provincial government passed Bill 16, the Red Tape Reduction Statutes Amendment Act. It allows for the provincial government to regulate and oversee iGaming activities, meaning it could green-light online gambling websites operated by private companies.

Since then, the province has been holding consultations regarding what its strategy could look like. It has just wrapped up an initial phase of those consultations.

There's no date yet for when Alberta will open its market. But it's just a matter of time, and will move ahead once a decision has been made around its eventual setup, said Service Alberta and Red Tape Reduction Minister Dale Nally.

"I don't have a date yet, only because I haven't taken anything in front of my cabinet colleagues," Nally told CBC News.

"Here's what I'll tell you. If there's a safer way to do this, and if there's a more responsible way to do it, and in a manner that allows us to capture a few dollars in the process, we're going to do this quickly."

Play Alberta may be the only regulated online gambling website in Alberta, but that doesn't mean players are sticking to the AGLC-run option. Players are able to place bets with offshore gambling websites such as Bet365 and Bodog in the so-called "grey market."

With an eye on bringing grey market bets back within provincial boundaries, Ontario became the first province in Canada to move ahead with a regulated sports betting program in 2022, allowing multiple operators to provide gambling services. 

After the first year of that arrangement, the province brought in total gaming revenues of $1.48 billion, according to a 2023 report from Ontario iGaming. As of March 31 of this year, there were 47 operators in Ontario offering 77 gambling websites, according to Ontario iGaming.

The challenge with the system as it exists today in Alberta, in Nally's view, is that AGLC captures around half of the market share.

"The goal here is to get rid of the illicit market … the best way to get rid of an illicit gambling market is to have a healthy, regulated market for both operators and players to come to," Nally said.

He added that gambling "inherently will never be safe."

"But the question is, is there a safer way to do it? Is there a more responsible way?"