Published on: October 20, 2024, 09:24h. 

Last updated on: October 20, 2024, 09:24h.

A spokesperson from the Alberta government has confirmed the delay of the expanded igaming market launch in the province to 2025.

Additional Time Required for Regulatory Refinement

“As the gaming industry evolves globally and in Alberta, we aim to create a favorable business environment while safeguarding the well-being of Albertans, especially our youth,” said Brandon Aboultaif, spokesman for Dale Nally, Minister of Service Alberta and Red Tape Reduction.

“We are focused on developing our iGaming strategy to ensure fairness and transparency for all. Stakeholders have provided feedback indicating the need for further discussions to gather input on the model. We are actively engaging in these conversations to align with our red tape reduction objectives.

“While our target is to present the strategy in 2025, we will continue to provide updates as we progress with this work.”

Significant Grey Market Presence

Nally is overseeing the process to introduce an Ontario-style, open, competitive igaming market in Alberta. Currently, the Alberta Gaming, Liquor and Cannabis’ Play Alberta platform is the sole legal gambling option for players in the province.

According to AGLC, with over 313,000 registered player accounts, Play Alberta, established in late 2020, has generated an estimated $5.36 billion in total bets for 2023-24. The platform has captured more than 45% of Alberta’s total igaming market (based on H2 Gambling Capital estimates utilized by AGLC).

Illegal igaming sites continue to operate in Alberta.

Cabinet Rejection of Proposal Twice

Prior to Aboultaif’s remarks to Casino.org, an operator source suggested the market could potentially launch before Christmas. Other sources indicated a likely early 2025 launch date. Some industry sources mentioned Fall 2025 as a possibility.

Reports revealed that a presentation on a new igaming regulatory framework to Premier Danielle Smith’s cabinet raised concerns and was rejected twice.

One industry insider stated, “the situation in Alberta has taken a negative turn. It has become complicated.”

Concerns Over Tax Rate

The discussions on expediting the launch mainly focused on a proposal to whitelist operators registered in Ontario who wish to operate in Alberta. There were also debates on implementing a 25% tax rate on gambling sites’ revenues. Ontario imposes a 20% tax on revenues (wagers minus payouts).

Many industry experts believe that a higher tax rate than Ontario’s may negatively impact channelization. In Ontario, the channelization rate has been reported as successful at 86.4% based on an Ipsos study in February 2024.