Legislation has been sponsored to allow multiple online casino gaming platform providers in Alberta, and there appears to be enough support to end Play Alberta’s iGaming monopoly in the Canadian province.
Expanding Market
Competition in any industry leads to a better product for the consumer, and the lawmakers in Alberta, Canada, appear to be warming to that idea. Play Alberta is the province’s sole iGaming and mobile sports betting platform provider, regulated by the Alberta Gaming, Liquor and Cannabis (AGLC), but a new bill could change that.
The iGaming Alberta Act, formally known as Bill 48, would amend the Gaming, Liquor, and Cannabis Act and allow multiple third-party operators to participate in a regulated market. As of this moment, companies like bet365 operate in a murky grey market in Alberta, unregulated by the province.
Push for a Vote on Market Expansion
Red Tape Reduction Minister Dale Nally has brought the bill to the fore and is actively seeking a vote to determine if indeed Alberta’s digital gaming market will expand to outside concerns.
“We know that unregulated sites may not provide protections for their players in terms of social responsibility or consumer protection, and we want to change that,” Nally said during a news conference last week.
“This is not about bringing online gambling to the province of Alberta; it’s already here,” he said.
Nally added that he has spoken to third-party platform providers that want to be regulated and operate freely in Alberta.
“We’ve met with them, and they’ve told us, ‘If you create a legal, regulated space, then we will join it.’ So, we know that there are responsible operators who want to be part of a safer, more responsible gambling ecosystem.”
Keeping the Money in Alberta
As Nally said, iGaming is already in Alberta, but estimates suggest that only 45% of the market is being captured by Play Alberta. Therefore, more than half of the online betting activity in the
province is being siphoned by unregulated sites, and no tax money is derived from those operators.
Bill 48 would bring many of those third-party gaming providers into the fold and create a new agency called the Alberta iGaming Corporation Act. The online gaming companies would sign contracts with that agency, but the industry would remain governed by the Alberta Gaming, Liquor, and Cannabis Commission.
“Let’s be clear: red tape is by definition regulatory requirements that are unnecessary or redundant,” Nally said. “With iGaming, as with the liquor and cannabis sectors, if we’re going to open a private marketplace, we need regulatory oversight to make sure that all those operators are acting responsibly, and perhaps more importantly, all Albertans are protected.”
Safeguards for Problem Gamblers
The bill would also construct guardrails for problem gamblers like a “centralized self-exclusion system.” This would allow an easy and effective way for those worried about falling prey to addictive gambling to check one box and exclude themselves from every site operating in the province.
The specifics of the revised sports betting bill have not been disclosed, but projections are that opening the market up to multiple operators would bring in as much as $700 million in revenue, with a portion of that money being earmarked to the government in the form of taxes.
Many industry insiders believe the policies and protocols will be similar to Ontario. A 20% tax on revenues is expected, but whether companies can use professional athletes to endorse their brands is uncertain. Ontario prohibits the use of athletic endorsements.
Nally has warned that if the bill does not pass, it will not stop the grey market from continuing to evolve and cannibalize Alberta’s regulated market.
