Alberta Launches an Open Online Gambling Market Inspired by Ontario’s Model

Online Niche’s Current Structure

For most of 2024, debates in Alberta focused on the potential adoption of an open-market format. The authorities ultimately opted for a model closely resembling Ontario’s approach, which enabled niche operators to reach local audiences starting in 2022. Since then, Ontario’s regulator has certified more than 45 companies.

The decision of Alberta’s government is primarily motivated by the need to reduce the dominance of the unregulated segment, with specialists estimating that shadow portals currently make up around 70% of the Canadian province’s total iGaming turnover.

PlayAlberta remains the sole licensed online operator in the jurisdiction. Managed by the government agency AGLC, it accounts for roughly 23% of Alberta’s total industry volume, according to research conducted by the Canadian Gaming Association.

Dave Nally, the Minister of Service Alberta and Red Tape Reduction, has highlighted the widespread presence of illicit digital products. He stressed that it is the responsibility of the authorities to intervene, supervise the market, and establish a transparent and secure environment. Private operators will be required to comply with strict standards intended to safeguard citizens, particularly young people.

Legislative Framework for Restructuring

The foundation for Alberta’s market transformation was laid in 2024 with the adoption of Bill 48. The legislation provided for the establishment of a new body, the iGaming Corporation (AiGC), which will manage commercial relations with niche brands, while the AGLC will retain supervisory responsibilities.

Under the revised market entry framework, operators and providers will be required to complete a 3-stage registration process, which includes:

• submitting an application for certification to the AGLC;
• undergoing a comprehensive compliance audit;
• inking an agreement with the AiGC.

The revenue distribution mechanism for the online gambling segment is set out in legislation. Under the approved model, 20% of tax proceeds will remain with the state, of which 2% will be allocated to the province’s First Nations and 1% to social responsibility initiatives, including industry research and gambling addiction treatment.

The law places particular emphasis on consumer protection and marketing standards. It mandates the introduction of a centralised self-exclusion system and imposes advertising restrictions. Promotional campaigns targeting minors or high-risk groups, as well as the involvement of current or former athletes in such initiatives, are prohibited in the region.

Open-Market Model: Economic Prospects

According to Mr Nally, new operators may enter Alberta’s gambling sphere in the coming months, with the application process already open.

The bill’s proponents underline the province’s demographic and economic strengths, citing its:

• consistently high GDP per capita;
• predominantly young adult audience;
• leadership in gambling expenditure per Canadian.

Jordan Bender of Citizens JMP Securities forecasts that an open and competitive sphere could generate between $709 million and $734 million annually within a few years of its official launch. Achieving these figures would position Alberta among the 8 largest gaming jurisdictions in North America.