- Alberta’s Bill 16 aims to permit third-party operators in online gambling by 2025.
- The province is looking to capture grey market bets to boost revenue similar to Ontario.
- Regulations will include safeguards like player monitoring and self-exclusion to ensure responsible gambling.
Alberta stands on the cusp of a transformative change in its online gambling landscape. With the introduction of Bill 16, the province is set to broaden the horizons of sports betting, iGaming, and crypto gambling, allowing third-party operators by the end of this year.
Taking cues from Ontario, Alberta’s new legislation aims to gain control of the grey market and enhance responsible gambling measures through comprehensive regulations.
Bill 16: A New Era for Alberta’s Gambling Sector
In May, Alberta’s government introduced Bill 16, or the Red Tape Reduction Statutes Amendment Act, marking a significant turning point in the province’s online gambling policies.
The bill secured Royal Assent soon after, granting the government authority to oversee and regulate online gaming operations in collaboration with Alberta Gaming, Liquor and Cannabis (AGLC). This move opens the market to licensed, private operators, effectively ending the provincial government’s previous monopoly on legal online gambling.
Currently, the only legally sanctioned option in Alberta is PlayAlberta, an AGLC-managed platform offering casino games and sports betting. However, many Albertans continue to use unregulated offshore sites like Bet365 and Bodog, contributing to the grey market.
Ontario’s similar initiative in 2022 led to a remarkable $1.48 billion in gaming revenue within just the first year. Alberta aims to replicate this success by diverting bets from unregulated markets and enhancing provincial revenues.
The provincial government is also consulting with industry stakeholders to define the most effective strategies for enhancing market competition while addressing PlayAlberta’s limitations.
No official launch date has been set; however, Minister Dale Nally of Service Alberta and Red Tape Reduction has stressed the government’s commitment to prompt action once the strategy is finalized.
Responsible Gambling: A Core Focus of the Expansion
While the legalization of sports betting presents lucrative financial prospects, Alberta is vigilant about the challenges posed by an expanded gambling market, particularly regarding problem gambling and addiction risks.
David Hodgins, a clinical psychology professor at the University of Calgary and research director at the Alberta Gaming Research Institute, has raised concerns about the social consequences of introducing multiple operators. He underscores the necessity of effective safeguards to mitigate potential damage.
To foster responsible gambling practices, Alberta is considering self-exclusion programs which would enable individuals to voluntarily ban themselves from all provincial gambling platforms. Ontario is already in a similar process, and Alberta aims to align with these practices.
Minister Nally has expressed interest in implementing provincewide self-exclusion tools alongside monitoring strategies to identify sudden changes in betting behaviors as a means to address problem gambling.
Alberta is also examining how to structure revenue shares between the government and private operators. Ontario currently retains 20% of revenue from regulated gambling websites—an arrangement Alberta is closely observing. The goal is to strike a balance that both attracts operators to the market and generates significant provincial revenue.
As Alberta approaches the establishment of an open, regulated online gambling environment, it seeks to enjoy the advantages seen in Ontario, all while prioritizing safety and responsible gambling practices.
With consultations nearing completion and regulatory frameworks under refinement, the province could usher in a new chapter for sports betting and iGaming as early as late 2024 or early 2025.