Alberta’s iGaming Market: A Shift in Launch Timeline and Regulatory Focus

Posted on: October 20, 2024, 09:24h.
Last updated on: October 20, 2024, 09:24h.

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As the digital gaming landscape continues to evolve, Alberta’s government has made a critical announcement regarding the expansion of its iGaming market. A spokesperson confirmed that the much-anticipated launch is now postponed until 2025. This decision reflects the province’s commitment to establishing a robust regulatory framework that balances industry growth with the protection of its citizens.

More Time Needed to Refine Regulatory Regime

Brandon Aboultaif, a spokesman for Dale Nally, Minister of Service Alberta and Red Tape Reduction, emphasized the importance of a thoughtful approach to the iGaming strategy. He stated, “As the gaming industry continues to evolve globally and in Alberta, we want to ensure a conducive business environment, while protecting the health and safety of Albertans, particularly our youth.”

The government aims to incorporate feedback from industry stakeholders to build a strategy that promotes fairness and transparency across the board. "Further engagements will also bring opportunities that align with our red tape reduction priorities," Aboultaif added. The province plans to keep the public informed as developments unfold toward the 2025 target.

Big Grey Market Presence

Alberta currently operates under the Play Alberta platform, which is the sole legal option for online gambling in the province. Launched in late 2020, Play Alberta has around 313,000 registered player accounts, generating an impressive projected $5.36 billion in total bets for the 2023-24 fiscal year. According to estimates from H2 Gambling Capital, this platform holds over 45 percent of Alberta’s overall iGaming market.

Despite these successes, Alberta is grappling with a significant grey market presence, where unregulated iGaming sites attract a portion of gambling activity. This reality intensifies the urgency of establishing a competitive and safe legal framework.

Proposal Shot Down Twice in Cabinet

Speculation about the timing of the iGaming market launch shifted dramatically following Aboultaif’s remarks. Earlier reports suggested that there was a possibility of an introduction before the Christmas season, while other sources speculated on a timeline stretching into early or even fall 2025. However, presentations made to Premier Danielle Smith’s cabinet regarding a proposed new regulation faced skepticism, resulting in the proposal being shot down twice.

As one industry insider noted, “Things have gone pear-shaped in Alberta. It’s gone sideways.” This statement reflects the growing frustrations within the sector as individuals and organizations are left uncertain regarding future developments.

Tax Rate an Issue

Central to the discussions surrounding Alberta’s iGaming framework is the proposed tax rate on gambling revenues. The government is contemplating a 25 percent tax rate for gambling operators wishing to establish a presence in the province. This proposal has raised alarm bells within the industry, particularly since Ontario—often seen as a benchmark for iGaming regulation—currently imposes a 20 percent tax.

Industry experts are concerned that a tax rate exceeding Ontario’s could negatively impact player engagement and overall market viability. The province of Ontario has reported significant success in channelization, with over 86 percent of players using licensed operators, as pointed out in a recent Ipsos study.

Moving Forward: What Lies Ahead

As Alberta navigates the complex waters of regulatory development for its iGaming market, the focus remains on ensuring a safe and equitable environment for both operators and players. The postponed timeline allows for the necessary adjustments to the regulatory framework, albeit with a growing urgency to address the grey market and the needs of stakeholders.

With insights from industry experts, player preferences, and external market pressures shaping the discussion, Alberta’s government finds itself at a critical juncture. The decisions made in the coming months will undoubtedly influence the future landscape of online gambling in the province, making this an exciting yet tense time for businesses and consumers alike.

As we approach 2025, stakeholders are encouraged to remain engaged with the process as Alberta charts its course toward a balanced and prosperous iGaming future.