Alberta’s Ambitious Move Towards iGaming Regulation

• An Alberta minister is aiming to extend an invitation to offshore bookmakers and iGaming companies.
• According to Dale Nally, the Service Alberta Minister, the black market needs to be eliminated.
• His newly proposed legislation is paving the way for Alberta to emulate Ontario’s approach.

Alberta is on the verge of potentially becoming the second province in Canada to fully embrace iGaming. This move could open the floodgates for private operators to enter the market.

The provincial government has introduced Bill 48, known as the iGaming Alberta Act. This legislation intends to dismantle the existing monopoly held by the locally managed PlayAlberta.ca platform, enabling third-party operators to apply for licenses as well.

Alberta Intends to Welcome Established Offshore Gaming Companies

The objective is to provide reputable brands like Bodog and Bet365 with the opportunity to join the regulated market and start contributing through taxes. Service Alberta Minister Dale Nally has put forward the bill, supporting it with various arguments.

Nally contended that the bill would elevate the industry’s standards, aligning them with the best global practices. He cited Ontario as a prime example of successful iGaming regulation. Furthermore, Nally stressed the need to curb and ultimately eradicate black market operations.

To achieve this, the province must differentiate between black and grey market operations. Nally believes that certain brands are eager to enter the market and contribute through taxes if given the opportunity. Bet365, for instance, is expected to be a contender, as the company currently operates offshore but is not required to pay state taxes.

Conversely, black market operators, Nally explained, are those companies that would resist entering the provincial market due to the imposition of stricter regulatory standards. As a result, their influence in the iGaming market needs to be minimized.

Meeting the Growing Demand for Online Gambling with the iGaming Alberta Act

Most notably, Nally highlighted the already prevalent nature of offshore gambling. He warned that even if the iGaming Alberta Act were to be rejected in the current legislative session, it would not halt the overall increase in demand for iGaming.

In the absence of regulated and licensed websites, this demand is being funneled to the same black-market operators that Nally has been cautioning against. At present, PlayAlberta.ca is unable to fulfill the demand for the products sought by locals, many of whom are already participating in offshore gambling.

According to estimates, Albertans wager over C$378 million annually on various offshore gambling sites.

‘By capturing those revenues and repatriating some of those dollars back into Alberta, we will have the resources to support and assist Albertans,’ Nally argued. He remains confident that the future success of an iGaming market rests on a licensee-based model involving private companies that are already accessible to local players.