By David Boles, Local Journalism Initiative Reporter, St. Albert Gazette
Alberta’s regulated online gambling market is now live, opening the door to a new industry that analysts say could generate significant revenue while raising questions about consumer protections and gambling addiction.
The market officially launched July 13 after legislation passed by the Alberta government earlier this year. While nearly 50 operators have registered ,Service Alberta and Red Tape Reduction Minister Dale Nally said, fewer than half were ready to begin offering services when the market opened.
Industry analysts say Alberta’s model closely mirrors Ontario’s — the only other Canadian province with a regulated competitive online gambling market — giving the province a roadmap for both the financial opportunities and the regulatory challenges ahead.
“They’re very similar structures,” said Geoff Zochodne, a senior news analyst at Covers.com
The online gambling market here will be managed by The Alberta iGaming Corporation, while Alberta Gaming, Liquor and Cannabis regulates and enforces the rules.
One of those rules is setting aside three per cent of total revenue, with two per cent of being allocated for First Nations and the one other per cent being for responsibility programs associated with gambling.
At this time, Alberta and Ontario are the only provinces with iGaming. The system has proven financially successful in Ontario, with annual reports showing increased revenues and betting.
Zochodne notes this is a hint as to how lucrative the gambling market is.
“The fact that Alberta has both launched a competitive market for online sports betting and online sports gambling is a pretty important thing,” he said. “If you look right now at the U.S., where legalized sports betting has now been adopted by most of the states, the same thing can’t be said for online casino gambling.”
The next step, said Zochodne, is to enforce the rules for both bettors and betting companies.
“Regulation is a full-time job,” he said.
As for AGLC, it says it’s pleased with how the launch went, with 15 operators approved and 22 sites live for regulated use in Alberta.
‘No shutdown time’
The market being live in Alberta didn’t surprise Carrie Shaw, an assistant professor at the University of Alberta and chair of the Alberta Gambling Research Institute.
“I’ve known it was coming for at least two years,” said Shaw.
With the market being live, Shaw says it’s important people understand how addictive online betting and gambling can be.
“There is no shutdown time,” said Shaw. “We have easy access to online gambling, it’s at our fingertips 24/7.”
There has been a normalization of advertisements for gambling, and betting services normalize engagement with gambling, said Shaw, although she notes there’s no evidence to suggest the normalization affects things in any positive way.
The data shows that while problematic gambling has been relatively stable, there have been signs of trouble in the only other Canadian province with an iGaming platform.
“(Ontario’s) problem gambling rates actually increased since the launch of their open market, and as did the number of helpline calls for problematic gambling and gambling harms,” Shaw said.
“Can we expect that in Alberta? Potentially.”
