• Alberta’s Bill 16 will allow third-party operators in online gambling by 2025
• The province aims to capture grey market bets and boost revenue like Ontario
• Safeguards like self-exclusion and player monitoring will promote responsible gambling

Alberta is on the brink of a significant shift in its online gambling landscape. With the passage of Bill 16, the province aims to open up sports betting, iGaming, and crypto casinos to third-party operators by the end of this year. 

Alberta’s move follows Ontario’s example and is designed to capture the grey market while promoting responsible gambling through updated regulations and safeguards.

Bill 16 a game-changer for Alberta’s gambling industry

In May, the Alberta government passed Bill 16, also known as the Red Tape Reduction Statutes Amendment Act, marking a monumental shift in the province’s approach to online gambling. 

The bill, which received Royal Assent shortly after, allows the provincial government to oversee and regulate online gaming alongside Alberta Gaming, Liquor and Cannabis (AGLC). This opens the door for private, licensed operators to enter the Alberta market, replacing the government’s previous monopoly on legal online gambling.

Currently, the only legal option in Alberta is PlayAlberta, a platform managed by AGLC that offers casino games and sports betting. However, offshore “grey market” sites like Bet365 and Bodog continue to attract many Albertans, contributing to an unregulated market. 

Ontario implemented a similar model in 2022, which generated $1.48 billion in total gaming revenue during its first year and Alberta’s government hopes to replicate this success by drawing bets away from illicit markets and boosting its own revenues.

Alberta’s expansion plans aim to address the limitations of PlayAlberta and enhance competition. The provincial government is currently in the process of consultations with industry stakeholders to determine the best path forward. 

Though a specific launch date has yet to be set, Service Alberta and Red Tape Reduction Minister Dale Nally has emphasized that the government intends to act quickly once a final strategy is determined.

Regulated expansion with a focus on safety

While opening the Canadian sports betting market offers lucrative revenue opportunities, the move is not without its challenges. Alberta is mindful of the potential risks associated with an expanded gambling market, particularly in terms of problem gambling and addiction. 

David Hodgins, a professor of clinical psychology at the University of Calgary and research director with the Alberta Gaming Research Institute, expressed concerns about the social impacts of having multiple operators in the province. He emphasized the importance of implementing strong safeguards to minimize harm.

To promote responsible gambling, Alberta is looking to adopt measures like self-exclusion programs that would allow individuals to ban themselves from all gambling sites within the province. Ontario is working toward such a system, and Alberta is keen to follow suit. 

Minister Nally confirmed that he is interested in provincewide self-exclusion tools, as well as monitoring player behaviour to detect sudden shifts in betting patterns—another strategy aimed at curbing problem gambling.

Revenue splits between the government and private operators are also being reviewed. Ontario takes 20% of revenues from regulated gambling websites, a model Alberta is studying closely. A balance must be struck to ensure the tax rate is appealing enough to encourage operators to join Alberta’s market, while also generating significant revenue for the province.

As Alberta moves closer to an open, regulated online gambling market, it seeks to capture the benefits seen in Ontario while ensuring safety and responsible gaming practices.

With consultations nearing completion, and regulatory frameworks being refined, the province could see a new era of sports betting and iGaming by the end of 2024 or early 2025.