Going live?
As a seasoned crypto investor with a keen interest in the gambling industry, I find Alberta’s foray into regulated online gambling particularly intriguing. Having closely followed the Ontario market’s success and growth, I can see a similar potential in Alberta, given its wealthier population and younger demographic.
The news is confirmed: Alberta will become the second Canadian province to launch a fully regulated, legal gambling market. Initially, it was expected to debut in early 2025, but recent whispers suggest that it might open as soon as Christmas 2024. Once operational, it will rank among North America’s larger markets, and leading international operators have shown interest by expressing their intent to participate and submit license applications.
As a crypto investor, I understand the importance of conducting thorough research before diving into any opportunity. This seems like a mutually beneficial venture for gamblers, online gambling platforms, and even the province itself. The profits for all parties involved are expected to be substantial, and it’s clear that a well-regulated market can drive out unscrupulous operators, thereby safeguarding citizens from potential risks associated with gambling.
Using the Ontarian model
Previously this year, the provincial administration announced its intentions to expand its market, mirroring Ontario’s, where online gambling has been approximated to contribute about CA$ 2.7 billion to their economy. An impartial administrator is set to be appointed for this endeavor, and it is also speculated that First Nations will play a role in the creation of the digital marketplace as well.
Alberta’s Minister for Red Tape Reduction, Dale Nally, claimed,
Our approach is closely aligned with what Ontario has done. We’re using their blueprint for our own roadmap. We might make some minor adjustments, but we’ve been greatly influenced by Ontario’s example. The result will share many similarities. It’s going to be a market that’s open and unrestricted.
Currently, there’s just one officially sanctioned online gambling platform in Alberta – Play Alberta – that provides sports betting, casino-style games with a touch of live dealer action. Despite its more restricted offerings compared to Ontario’s choices, it still offers engaging games. The top picks even let gamblers pay via diverse methods such as fiat money and cryptocurrencies. Run by the Alberta Gaming, Liquor, and Cannabis Authority, it will be intriguing to observe how the province manages the delicate relationship between operators and regulators.
In May, the Red Tape Reduction Statutes Amendment Act (often referred to as Bill 16) was approved, granting the regional government authority to manage and supervise online gaming operations. This move was generally seen as a signal to commercial gaming companies that they could establish their businesses within the province.
Commercial interest
In August, Michael Moskowitz, Chairman and CEO of NorthStar Gaming, stated they find the Alberta market highly appealing. He hinted that their approach to entering this market might mirror Ontario’s. Since expanding North Star Gaming’s customer base and brand beyond Ontario is a priority, they are closely monitoring Alberta’s developments. Additionally, it’s predicted that Betway, PointsBet Canada, and DraftKings will be among the early participants in the Alberta market.
Why is Alberta of interest to gambling majors?
Canadians have a strong affinity for gambling, making the nation an alluring target for online casinos and sports betting platforms. Well-regulated markets are especially enticing because obtaining an official license serves as a symbol of credibility or a badge of trustworthiness for the operator. Given that online casinos manage sensitive personal data, this approval plays a crucial role in building customer trust towards the platform.
Although Alberta doesn’t boast as many residents as Ontario (or British Columbia for that matter), it stands out as one of Canada’s richest provinces when considering wealth per person. Additionally, its population is relatively younger, creating a distinct market compared to Ontario. Currently, Ontario hosts more operators and platforms than nearly any other regulated market globally.
Although Albertans tend to be younger and wealthier, the market may not sustain a wide range of operators due to competitive reasons. Moreover, Play Alberta would likely aim to maintain its market share and income. It’s crucial to strike a balance so as not to jeopardize Play Alberta’s financial significance to the province’s financial resources.
How will it be structured?
At this point, we don’t have a well-established image or understanding of what the market structure might be. Key concerns and calculations about the capacity for multiple players in the market are still up for discussion.
How will it impact First Nations?
What will be the rules around sports betting and advertising?
What will the tax rate be?
How will the regulated market deal with the grey market?
Weaning people away from offshore sites
As reported by AGLC, Play Alberta has attracted roughly 45% of the province’s gamblers so far, with many iGamers still choosing offshore sites. The aim for other markets and what the Albertan regulator aspires to achieve is to transfer players from unlicensed operators to those who are legally allowed to operate. In essence, their goal is to bring all players under the umbrella of licensed operators. Currently, Play Alberta generates $1.5 billion in gambling revenue for the government, which supports various programs and services. The provincial government aims to double this amount by capturing the entire market potential.
Opportunity cost
While the opportunity for increased revenues is attractive to the province’s government, gambling revenues are not free money.
Regulation incurs costs in terms of negotiating the agreements, establishing the gaming authority, and establishing the structures to collect fees and revenues. If the regulator promises to offer consumers and operators enhanced protection from rogue operators, they need suitable staff to support both the gambling sites and their customers. They must also have easily accessible, safe gambling tools and services in place. In Ontario, the platforms were tasked with setting up their own self-exclusion programmes, but the general consensus is that a single programme would be more beneficial.
Full steam ahead?
Despite everyone’s enthusiasm, it appears increasingly doubtful that the market will become functional by the end of this year, let alone by early 2025. This skepticism comes from a trusted source within the industry.
The situation in Alberta has taken a turn for the worse. A plan was presented to the cabinet, but it was rejected on two occasions. It seems like things aren’t going as planned.
Regardless of whether it’s a gradual shift or rapid progression, both governments and industries seem to be holding their strategies closely, and people are eagerly waiting for any new developments.
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2024-10-24 20:38