Alberta's Push Toward a New Regulated iGaming Market in Canada

Last week, the Hon. Dale Nally, Minister of Service and Red Tape Reduction for Alberta, spoke to CDC Gaming Reports about the province’s progress toward a new open and regulated iGaming market. Although he refrained from committing to a specific launch date, Nally expressed optimism, saying, “I can tell you that I think people are going to be surprised by how fast we get this done…and roll this out.”

This statement has undoubtedly captured the attention of industry professionals across Canada and beyond, as Ontario in establishing a regulated, competitive commercial gaming market. As Alberta makes strides toward this significant development, many are curious about which province might follow suit.

Growing Enthusiasm for Alberta’s Gaming Market

Paul Burns, President and CEO of the Canadian Gaming Association, shared his insights with CDC Gaming Reports on August 2, saying, “The enthusiasm and interest there have been fantastic. The minister has obviously met with industry stakeholders quite a bit, spending time with AGCO and iGaming Ontario. We’re a resource as well. They’ve gleaned a lot from the Ontario experience. That’s helping them with the speed. He’s made it a priority.”

The burning question on everyone’s mind is what Alberta’s gaming market will ultimately look like. Factors such as tax rates, the impact on First Nations communities, sports-betting advertising, and strategies for addressing the gray market will play crucial roles in shaping the market. With Ontario’s gaming market setting a 20% tax rate as a benchmark, industry players are keen to see how Alberta will approach these issues.

While Alberta and Ontario share some similarities, they also have distinct differences, as Nally pointed out. “We have a younger population. That’s because of our energy industry, which tends to attract younger people to the province. We also have higher incomes and a low cost of living with low taxes. All of that means that we have higher disposable incomes in Alberta than we do in the rest of the provinces. And it’s a demographic that loves their sports.”

Burns echoes this sentiment, acknowledging that Alberta may adopt regulatory standards akin to Ontario’s. “It will look a lot like Ontario on some level. We’ve encouraged them to look at Ontario in of regulatory standards. That makes it easier for companies to evaluate the marketplace. It doesn’t mean everyone is going to go. The market may not be for everybody, given its size. But you want people to be interested. It’s a good gaming market, we know that.”

Retail Sportsbooks: A New Frontier in Alberta

Alberta’s potential expansion into retail sportsbooks is another area of interest. While Ontario’s rollout of retail sportsbooks has been described as slow, with the Ontario Lottery and Gaming Corporation (OLG) announcing in October 2022 that casinos would launch retail sportsbooks, progress in this area has been gradual. For instance, Caesars opened a retail sportsbook at the Windsor casino in January 2023, marking the first full-service brick-and-mortar sportsbook. Other Ontario casinos, including those operated by Great Canadian Entertainment, have introduced sports-betting kiosks and lounges. The slow rollout has left land-based casinos eager to offer a product that competes with their U.S. counterparts.

In Alberta, there are 29 licensed land-based gaming casinos. While the retail sports betting landscape is not as developed as in Ontario, the interest from the casino sector is evident. Burns notes, “There isn’t a lot of retail sports betting going on. The casino sportsbook product has been slow. The casino sector has been interested. I suspect it can (happen faster in Alberta).”

Burns further emphasizes the importance of allowing casino operators to form partnerships with branded sportsbooks, stating, “The minister realizes you don’t want to put artificial barriers in place … prevent casino operators from forming partnerships with branded sportsbooks. Mohegan has a great partnership with FanDuel in Connecticut. OLG prevented that, for reasons I don’t understand. Why wouldn’t you give your partners all the tools they can to compete? Sports betting is a low-margin business, a volume business. For casinos, it’s an important amenity for driving people into the building. When people gamble on table games and slot machines, that’s where they make their money. So they’re making money off those visitations, not the sportsbook itself. I think Minister Nally understands that. He’s trying to figure out a regime where everyone can benefit. That’s encouraging.”

As Alberta continues to work toward launching its regulated iGaming market, industry stakeholders and enthusiasts are eagerly anticipating the opportunities and challenges that lie ahead. The province’s unique demographic and economic factors, coupled with insights gained from Ontario’s experience, position Alberta as a potential trailblazer in the evolving Canadian gaming landscape.

Source:

Canadian Gaming Association president: Will retail sportsbooks get more of a boost in Alberta?, cdcgaming.com, August 6, 2024.