Alberta’s authorities have launched a new legal framework to regulate the commercial online gambling sector. The initiative aims to attract private operators and reduce the share of the shadow segment.
Current Structure of the Digital Vertical
An open-market format was discussed in the Canadian province throughout most of 2024. As a result, the government adopted a model largely similar to Ontario’s approach. The latter allowed its niche brands to reach local audiences in 2022. Since then, the regulator has licensed over 45 enterprises.
The decision of Alberta’s authorities is driven by the need to reduce the scale of the shadow sector. Experts estimate that illegal platforms currently account for approximately 70% of the jurisdiction’s total internet gambling turnover.
PlayAlberta is still the only certified digital company in the region. It is operated by the government agency AGLC and accounts for about 23% of the province’s total industry volume, according to the Canadian Gaming Association’s study.
The Minister of Service Alberta and Red Tape Reduction emphasised the widespread availability of unregulated web products. In Dave Nally's opinion, it is the authorities' responsibility to intervene, oversee the market, and create an open and safe environment. Private brands will be required to adhere to high standards designed to protect residents, especially youth.
Legislative Framework for Restructuring
The basis for transformation was established in 2024 with the passage of Bill 48. The document provided for the creation of a new agency, the iGaming Corporation (AiGC). This body will be responsible for managing commercial relationships with niche entrepreneurs, while all oversight functions will remain with the AGLC.
Under the revised market entry system, operators and suppliers will undergo a 3-step registration, which includes:
- applying for certification to the AGLC;
- passing a thorough compliance audit;
- signing an agreement with the AiGC.
The mechanism for distributing revenue from the web vertical is also enshrined in law. According to the approved model, 20% of tax revenues will be retained by the state. From this amount, 2% will be donated to the region’s First Nations, and 1% to social responsibility programs, including industry research and ludomania treatment.
The legislation places special emphasis on customer protection measures and marketing rules. Specifically, it provides for the implementation of a centralised user self-exclusion system and introduces ad restrictions. Targeted promotional campaigns aimed at minors and high-risk individuals, as well as the participation of current or former athletes in such initiatives, are prohibited in the province.
Economic Prospects for an Open Model
According to Mr Nally, new operators could enter the market in the coming months. The procedure for sending applications is already available.
The bill’s supporters emphasise Alberta’s demographic and economic attractiveness, highlighting its:
- consistently high GDP per capita;
- predominantly young adult audience;
- leadership in gambling spending per Canadian.
According to Jordan Bender of Citizens JMP Securities, an open and competitive industry could generate between $709 million and $734 million annually within a few years of its official launch. If these figures are achieved, the province will become one of North America’s 8 largest gaming jurisdictions.
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