Alberta Follows Ontario’s Lead with Online Gambling Expansion

07/09/2024 | Categories: News | Published by: Heather | Last updated: 07/09/2024

Alberta is preparing to expand its online gambling market by allowing private operators to legally offer services, moving beyond its current single regulated platform, Play Alberta. This change follows the approval of Bill 16 in May, which grants the provincial government authority to regulate iGaming activities involving private companies.

The move is aimed at bringing Alberta’s online gambling model closer to Ontario’s, which generated $1.48 billion in its first year after allowing multiple operators. Currently, Play Alberta holds about half of the province’s online gambling market, while offshore websites like Stake attract Bitcoin players.

Service Alberta and Red Tape Reduction Minister Dale Nally stated that the primary goal is to eliminate the illicit gambling 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 explained.

No Set Official Launch Date

Although consultations on the new framework have taken place, the official launch date has not been set. Nally emphasized the importance of prioritizing safety and responsibility in the upcoming system. “Gambling inherently will never be safe. But the question is, is there a safer way to do it?” he remarked.

Operators have raised concerns about sharing player information with Alberta Gaming, Liquor and Cannabis (AGLC), which currently manages Play Alberta. Nally acknowledged these concerns but noted that the government’s role is to manage gaming operations responsibly.

Risk of Problem Gambling

Experts, such as University of Calgary clinical psychology professor David Hodgins, have voiced worries about potential harms tied to increased access to online gambling. Hodgins urged the government to implement strong safeguards, emphasizing that the focus should be on minimizing risks.

Alberta is considering various measures, including provincewide self-exclusion tools and mandatory limits on gambling to reduce addiction risks. The province is still working out revenue-sharing arrangements with private operators, aiming to balance operator participation with maximizing public revenue. For reference, Ontario’s government takes 20% of regulated gambling revenues.

A 2023 survey by the AGLC found that 72% of Albertans aged 18 and older participated in gambling, a slight increase from 70% in 2022.

Canada’s Online Gambling Laws

Canada’s online gambling laws are varied, as each province has its own approach to regulating the industry. The federal government has given provinces the authority to oversee gambling within their jurisdictions, resulting in varied regulations.

In Alberta, the recent shift to allow private operators mirrors developments in other provinces like Ontario, where multiple private companies are regulated. Ontario’s iGaming market, for instance, operates under a competitive model that includes both public and private entities, setting a precedent for other provinces considering similar expansions.

However, not all provinces are as open. British Columbia and Quebec, for example, continue to operate primarily through government-run platforms, though discussions about allowing private operators are ongoing.

Federal laws still prohibit unlicensed online gambling operators, but many offshore websites operate in a grey area, accepting Canadian players despite lacking a domestic license. These platforms exist alongside provincial offerings, complicating regulatory enforcement and efforts to keep gambling safe and fair for Canadians.

Provincial regulators like AGLC in Alberta or AGCO in Ontario are tasked with ensuring that gambling sites meet strict safety and responsibility standards, including measures for self-exclusion, problem gambling resources, and revenue-sharing agreements with the government.

Crypto Gambling in Canada

Crypto gambling in Canada is gaining traction as more players turn to digital currencies like Bitcoin and Ethereum for online gaming. While provincial authorities regulate traditional online casinos, crypto-based gambling operates in a more ambiguous legal environment.

Many Canadian players use offshore crypto casinos, which accept digital currency transactions but fall outside provincial regulation. These platforms offer an appealing mix of anonymity, faster payouts, and often lower transaction fees compared to traditional methods.

Although provinces like Ontario and Alberta have taken steps to regulate online gambling, crypto-specific regulations remain unclear, allowing international platforms to dominate the market.

The growth of cryptocurrency in gambling is part of a bigger trend in digital money and blockchain technology. Canadian players like using blockchain casinos, because they offer more transparency and security, and smart contracts, help make the games fair. However, without clear regulations, there are risks, such as problems with protecting players and promoting responsible gambling.

As crypto gambling becomes more popular in Canada, provincial governments might need to create new rules to keep players safe while still allowing for innovation.

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