Alberta, Canada, is preparing to follow Ontario's lead by opening its online gambling market to private operators. This strategic move aims to transform the province's current online gambling grey market into a regulated source of billions of dollars in revenue. Alberta will become the second Canadian province to allow private companies like FanDuel and DraftKings to operate legally, with the government taking a share of the revenue.
Ontario's success in the online gambling market is evident, with last year's gambling revenue totaling $2.4 billion. Before regulation, a significant portion of Ontario's annual $1 billion in bets was placed through unregulated websites. However, after implementing a legal framework, 85% of gamblers shifted to legal platforms. Alberta hopes to replicate this success, capture a larger share of the online gambling market, and ensure a stable source of income.
Targeting the Illegal Market
Currently, the only regulated online gambling platform in Alberta is Play Alberta, operated by the Alberta Gaming, Liquor and Cannabis Commission (AGLC). However, many gamblers still use offshore websites in the unregulated "grey market." The introduction of Bill 16 (the Red Tape Reduction Statutes Amendment Act) has enabled Alberta to regulate and oversee iGaming activities, paving the way for private operators to enter the market.
The provincial government is currently in the consultation phase, gathering opinions on how best to construct an expanded online gambling market. The goal is to create a safer, more responsible gambling environment while reclaiming market share taken by illegal operators. The government is keen to avoid repeating the challenges faced by Ontario before regulation, where unregulated gambling sites dominated the market.
Addressing Public Concerns and Safeguards
While the economic benefits of expanding Alberta's online gambling market are clear, there is growing concern about its potential social harms, especially to vulnerable groups. Experts warn that expansion could lead to increased gambling addiction, financial difficulties, and other negative consequences.
To mitigate these risks, Alberta is exploring strict regulatory measures, including self-exclusion programs and mandatory player loss limits. These tools are designed to help individuals control their gambling habits and prevent problem behaviors from escalating. The government is considering implementing a province-wide self-exclusion scheme and monitoring betting patterns to detect risky behaviors early.
