By examining Ontario’s strategies, Alberta can gain insights into market demand, revenue generation, and the importance of responsible gambling initiatives. By Damian Martinez, journalist at G&M News.
The Canadian province of Alberta stands on the brink of a significant shift in its gambling industry. With the anticipated regulation of online casinos and sports betting estimated for 2025, the region is preparing to develop a fast-growing market with substantial economic promises. The transformation is expected to unlock new revenue streams and create jobs across the sector, aligning Alberta with Ontario, which has already embraced digital gambling. This introduction of a regulated online betting landscape comes amid rising demand for accessible gaming options and a shift in consumer preferences toward online entertainment.
Ontario’s success in regulating online gambling, launched in April 2022, has set a promising precedent. The Canadian province’s online gaming market generated remarkable revenues in its first year, proving that a well-regulated environment can achieve both economic achievement and player protection. By examining Ontario’s strategies, Alberta can gain insights into market demand, revenue generation, and the importance of responsible gambling initiatives. As Alberta considers this move, the potential financial benefits appear substantial, but so do the responsibilities tied to managing a safe and fair betting environment.
Alberta’s regulated online gambling market could quickly become a driving force in the province’s economy, generating significant tax revenue and job growth across various sectors. Early projections estimate that Alberta could bring in hundreds of millions of dollars in annual revenue, with potential growth similar to that seen in Ontario. This transformative opportunity promises to enhance Alberta’s economy while providing a safer, regulated alternative to the currently unregulated options that some Albertans now turn to for online betting.
LEARNING FROM ONTARIO’S EXPERIENCE
Positive numbers obtained after launching its regulated online betting sector in April 2022, Ontario serves as an insightful model for Alberta. In Ontario, the market surpassed expectations, with online casino and sports betting revenue reaching CAD 1.5 billion (USD 1.066 billion) within the first year of operation.
Moreover, Ontario’s strategic licensing system and partnerships with key players, such as BetMGM and FanDuel, enabled rapid growth and increased consumer protection. Alberta’s online betting segment could leverage a similar structure, capitalizing on lessons learned from Ontario to optimize economic and social outcomes.
MARKET POTENTIAL AND REVENUE PROJECTIONS
Early market research suggests that Alberta’s online gambling industry could generate an annual revenue of around CAD 700 million to CAD 1 billion (USD 498 million to USD 711 million) within the first few years. These projections stem from several key factors.
a) Population and Demand: With over 4.4 million residents, Alberta is Canada’s fourth most populous province, representing a sizable customer base for online gambling.
b) Tourism and Cross-Provincial Appeal: Alberta’s appeal as a tourist destination, particularly among other Canadian residents, may also bolster its gambling sector by attracting users who already participate in regulated markets, like Ontario.
c) Evolving Consumer Habits: Canadians are increasingly embracing digital services with a notable shift toward online entertainment. The legalization of sports betting has also fueled demand, with sports enthusiasts likely to engage in regulated online betting options.
ECONOMIC IMPACT: JOB CREATION AND TAX COLLECTION
Beyond market size, Alberta’s online betting sector could bring widespread economic benefits. Increased tax revenue would support essential public services and infrastructure. If Alberta’s gambling sector follows Ontario’s trajectory, it could create thousands of direct and indirect jobs, spanning technology, compliance, marketing, and customer support roles.
For instance, Ontario’s online gambling launch resulted in over 5,000 jobs and millions in annual tax revenue, with funds earmarked for healthcare, education, and responsible gambling initiatives. Alberta’s regulatory model could follow suit, balancing economic growth with social responsibility. Experts also predict that a regulated environment will curb the influence of offshore, unregulated platforms, redirecting funds into Alberta’s economy.
HOW MANY OPERATORS COULD ENTER THE MARKET?
In Alberta’s upcoming regulated online gambling market, we could expect around 20 to 30 online casino operators to enter initially, based on Ontario’s experience. Ontario saw about 25 operators join within the first year, including major names like BetMGM, FanDuel, and DraftKings. This entry was driven by both the population size and the province’s regulatory flexibility, allowing multiple operators to apply for licenses under well-defined standards.
Given Alberta’s population and demand potential, a similar number of operators could be anticipated. Alberta’s regulatory framework, if it mirrors Ontario’s approach, would likely encourage a competitive market structure with multiple operators offering diverse gaming options. This setup would not only enhance consumers choice, but also attract both established international brands and emerging companies interested in expanding within Canada.
In addition to these global operators, Ontario’s market has also seen local Canadian brands, such as NorthStar Bets, gain traction. NorthStar Bets is a homegrown operator that has differentiated itself through its focus on Canadian sports and a localized customer experience. Similarly, PointsBet and BetRivers have also successfully entered Ontario, building on their existing reputation and compliance expertise in North America. These operators, among others, have demonstrated that Ontario’s open, competitive licensing structure can attract a mix of both established giants and new entrants, offering Alberta a model for building a balanced, diverse online gambling landscape.
