Alberta is gearing up to emulate Ontario’s successful venture into the commercial online gambling sector with the aim of boosting the province’s economy. The forthcoming shift indicates Alberta’s readiness to diversify its revenue streams beyond the current Play Alberta monopoly, run by Alberta Gaming Liquor and Cannabis (AGLC). This move aligns with the broader plans unveiled by Dale Nally, Alberta’s Minister of Service and Red Tape Reduction, during a recent conference held in Toronto.
Alberta’s venture into commercial online gambling is heavily influenced by the model established in Ontario in 2022. Ontario’s foray has been notably lucrative, contributing CA$2.7 billion (US$1.97 billion) to the province’s GDP, according to data released this week. The sector has also been instrumental in sustaining approximately 15,000 full-time equivalent jobs, a statistic that underscores its considerable socio-economic impact.
Nally confirmed the province’s intentions to expand online gambling during his address to the conference audience. His announcement comes on the heels of Alberta passing Bill 16, a legislative measure aimed at streamlining the expansion of the provincial gambling sector. Without providing an exact timeline, Nally emphasized that Alberta’s online gambling market would not remain confined to Play Alberta, offering hopeful prospects for future growth and competition.
“We’re following their model as they built the roadmap. We’ll massage it a little bit, but it’s been inspired by the experience in Ontario. It’s going to be an open and free market,” Nally explained. This statement reflects Alberta’s approach to modify and adapt Ontario’s framework to better fit its specific needs, all while keeping the core elements intact.
The inception of a new independent administrative body to oversee the burgeoning commercial market was among the significant points highlighted. Alberta plans to establish an entity akin to iGaming Ontario, which operates independently of the Alcohol and Gaming Commission of Ontario (AGCO). This step is aimed at ensuring a regulated and smoothly running online gambling environment.
Moreover, Nally specified that Alberta’s indigenous First Nations, who have historical ties and stakes in the land-based casino market, will be included in the digital expansion.
. This inclusion underscores the government’s commitment to integrating diverse stakeholders into the online gambling frontier.
Bill 16, recently passed by Alberta’s legislature, lays the groundwork for such an expansion. The legislation is aligned with Premier Danielle Smith’s directives to explore new avenues in online gaming and sports betting. Bill 16 acknowledges the provincial government’s authority to conduct and manage gaming through AGLC, thereby simplifying regulatory processes.
PlayAlberta, powered by NeoPollard Interactive, has been a crucial player since its launch in October 2020. The platform experienced notable advancements when AGLC entered into a long-term partnership with NeoPollard’s BtoBet in early 2022, aimed at enhancing the website’s sportsbook. This partnership has already started bearing fruit, contributing significantly to Alberta’s financial health. In the fiscal year 2022-23, all provincial gaming activities collectively generated CA$1.5 billion in net gaming income for Alberta’s general revenue fund.
June 2023 saw the publication of a report by Deloitte, which highlighted the success of Ontario’s online gambling market. Remarkably, the market met or nearly met many of Deloitte’s five-year projections within its second year of operations (April 2023 to April 2024). This report provided valuable insights and validation for other provinces, like Alberta, eyeing similar ventures.
By adopting Ontario’s proven model, Alberta aims to harness the economic potential that a well-regulated online gambling market can offer. This move reflects a calculated attempt to balance the province’s fiscal strategy while providing a new form of entertainment to its residents. It also aligns with the provincial commitment to reduce red tape and foster a more open and competitive market environment.
Nally’s statements at the Toronto conference mark a significant turning point for Alberta’s economic and regulatory landscape. The province’s decision to embrace commercial online gambling suggests a forward-thinking approach to economic diversification and modernization. While the exact timeline for these sweeping changes remains unclear, Alberta’s commitment to following Ontario’s successful example signals promising days ahead for the province’s gambling industry.
