Posted on: October 20, 2024, 09:24h.
Last updated on: October 20, 2024, 09:24h.
A spokesman from the Alberta government has now confirmed what’s been reported – the launch of an expanded igaming market in the province has been pushed back to sometime in 2025.
More Time Needed to Refine Regulatory Regime
“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,” said Brandon Aboultaif, spokesman for Dale Nally, Minister of Service Alberta and Red Tape Reduction.
“We want to get our iGaming strategy right to ensure fairness and transparency to everyone. Industry stakeholders have told us that we need to continue our conversations so they can provide more input on the model. We are doing just that. Further engagements will also bring opportunities that align with our red tape reduction priorities.
“While we aim to put the strategy forward in 2025, we will continue to provide updates as this work unfolds.”
Big Grey Market Presence
Nally is heading up the due diligence to implement an Ontario-style, open, competitive igaming market in Alberta. Currently the Alberta Gaming, Liquor and Cannabis’ Play Alberta platform is the only place players can do to gamble legally in the province.
According to AGLC, with over 313,000 registered player accounts, Play Alberta, which launched in late 2020, has generated a projected $5.36 billion in total bets for 2023-24, and the site has captured over 45 per cent of Alberta’s overall igaming market (according to H2 Gambling Capital estimates, which the AGLC goes off of).
Alberta still has an active market of illegal igaming sites.
Proposal Shot Down Twice in Cabinet
Before Aboultaif’s comments to Casino.org, an operator source told us it was his impression that there was a possibility the market would go live before Christmas. Other sources on the operator side said a launch date was likely early 2025. Other industry sources told us that Fall 2025 was likely.
Industry reports then indicated a presentation to Premier Danielle Smith’s cabinet about a new igaming regulatory regime was met with concerns and was shot down twice.
One industry source said, “things have gone pear-shaped in Alberta. It’s gone sideways.”
Tax Rate an Issue
The talk about speed in going live had a lot to do with a proposal to whitelist or give approval to any operator who was already registered in Ontario and wanted to do business in Alberta as well. There was also debate about a proposed 25% tax rate on gambling sites’ revenues. The province takes 20% on revenues (wagers minus payouts) in Ontario.
Many in the industry think a tax rate higher than Ontario’s will negatively impact channelization. In Ontario, people will tell you that channelization has been very successful – 86.4%, according to an Ipsos study in February 2024.
