Alberta’s Delayed iGaming Launch: What It Means for Players and Operators
Posted on: October 20, 2024
Last updated on: October 20, 2024
In a much-anticipated move that could reshape the gambling landscape in Alberta, the government has confirmed that the launch of an expanded iGaming market within the province has been postponed until 2025. This decision comes amidst ongoing discussions aimed at refining the regulatory framework to ensure a safe and competitive environment for both players and operators alike.
Image/AGLC: The Alberta government has confirmed that the launch of a new Ontario-style, competitive igaming market won’t happen until 2025.
The Need for Regulatory Refinement
Brandon Aboultaif, a spokesman for Alberta’s Minister of Service Alberta and Red Tape Reduction, expressed the government’s commitment to developing a sound iGaming strategy. “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,” he stated.
This approach underscores the necessity of ongoing consultations with industry stakeholders. Aboultaif highlighted that further engagements would allow for more input on the model while also aligning with the province’s objectives of reducing regulatory burdens.
Current Landscape of iGaming in Alberta
At present, the only platform available for legal online gambling in Alberta is the Play Alberta platform, operated by the Alberta Gaming, Liquor and Cannabis Commission (AGLC). Launched in late 2020, Play Alberta has already amassed over 313,000 registered player accounts, generating an estimated $5.36 billion in total wagers for the 2023-24 period. Notably, Play Alberta currently dominates over 45% of the province’s overall iGaming market, according to estimates by H2 Gambling Capital.
Yet beneath this success lies a persistent concern: Alberta’s grey market. Despite the Play Alberta platform, illegal iGaming activities remain rampant, posing challenges to both player safety and regulatory efficacy.
Internal Challenges and Cabinet Decisions
Prior to the announcement from Aboultaif, there were hints from industry insiders that the launch could occur as soon as Christmas 2024. However, it appears that proposals for a new regulatory regime faced significant pushback in Premier Danielle Smith’s cabinet, culminating in the plan being shot down not once but twice.
An anonymous source indicated that “things have gone pear-shaped in Alberta,” emphasizing the unexpected complications arising during the development of the iGaming framework.
Taxation Considerations
A key factor in the delay seems to be the proposed tax rates for gambling operators in Alberta. Discussions around a substantial 25% tax on revenues would place Alberta’s rates above those of Ontario, which currently sits at 20%. Many within the industry warn that adopting a higher tax rate could deter operators and stifle the channelization of players into the regulated market.
In Ontario, high rates of channelization—up to 86.4% according to a February 2024 Ipsos study—have been attributed to the province’s structured approach to taxation and regulation. If Alberta hopes to mimic Ontario’s success, it must consider the long-term implications of a heavier tax burden on its emerging market.
Looking Forward
As the Alberta government moves forward with its expanded iGaming strategy, many industry stakeholders are anxiously awaiting developments. While formal updates are promised as plans progress, the postponed timeline suggests a deeper reevaluation of how online gambling will function in a province that has historically maintained a cautious stance toward gaming.
In conclusion, Alberta’s journey toward a competitive iGaming market is far from straightforward. With a commitment to regulatory refinement and stakeholder engagement, the province is taking a cautious yet potentially rewarding approach that prioritizes player safety and market integrity. As the landscape evolves, players and operators alike will be watching closely to see how Alberta navigates the complexities of iGaming in the years ahead.
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