The Alberta government minister who led the province’s initiative for a competitive iGaming market has responded strongly to criticism from Greg Moore, chair of British Columbia Lottery Corporation (BCLC).
“It is disingenuous for the chair of another province’s Crown gaming corporation to criticize another government’s policy decisions,” stated Dale Nally, the minister of Service Alberta and Red Tape Reduction, in response to Moore’s comments.
Minister Rebukes BCLC Chair
Moore, the former interim president and CEO of BCLC who was appointed chair in 2021, has publicly criticized Alberta’s new iGaming market model that allows private operators to compete with the government-owned PlayNow platform.
Moore’s primary concern is that the private model could lead to dominance by foreign owners, particularly American companies, resulting in a significant portion of gambling profits leaving the country.
Private Operators Targeted
According to Moore, the private market has seen a surge in online gambling activities with multinational operators aggressively vying for customers while prioritizing shareholder returns. He also raised concerns about regulatory scrutiny of some operators and their links to illegal-market activities.
After the launch of the Alberta iGaming market on July 13, Moore highlighted that only 16% of the 32 private operator groups were Canadian-owned while more than 80% were foreign-owned, with at least seven being controlled by U.S. parent companies.
Foreign Ownership Basis of Concern
The American-controlled companies include major gambling corporations like DraftKings, Caesars Entertainment, and PENN Entertainment, stated Moore.
“These are not small companies seeking opportunities in Canada but multibillion-dollar global corporations with vast resources and access to capital,” Moore expressed.
“The policy framework appears to promote competition but risks transferring Canadian gambling revenue and economic value to foreign corporations, particularly those in the United States,” he added.
Moore Pushes Public Model
On the other hand, Moore advocates for a public model, akin to B.C.’s, where iGaming profits from Crown corporations are reinvested back into healthcare, education, and public services.
The Alberta iGaming Corporation (AiGC) reported that the regulated market in Alberta currently has 29 iGaming sites accepting wagers.
Moore has also criticized Ontario’s competitive iGaming market, launched in April 2022, where 48 licensed private operators are competing with the Ontario Lottery and Gaming Corporation’s publicly owned PROLINE+ platform. Ontario has 83 active gaming websites.
Ontario Numbers Show Scale
In July, Ontario’s regulated market recorded nearly $9.9 billion in wagers, with non-adjusted gross gaming revenue exceeding $413 million, showcasing a month-over-month increase.
Under Ontario’s iGaming regulations, operators remit 20% of their gaming revenue to the province.
“Online gambling is a global industry, with unregulated operators accounting for a significant portion of the market in Alberta. The move to regulate online gambling aims to enhance player protection and social responsibility,” emphasized Nally.
Former Loto-Québec Chair Questions Moore’s Position
Helene Fortin, former chair of Loto-Québec, expressed surprise at Moore’s comments, stating that provincial governments set public policy while lottery corporations execute the mandates given to them.
Deloitte Industry Study
Fortin argued that Alberta’s new iGaming framework doesn’t introduce online gambling but legitimizes existing activities under consumer protections and regulatory oversight.
She referenced a Deloitte study showing the positive economic impact of regulated iGaming in Ontario, supporting thousands of jobs, contributing to GDP, and generating government revenues.
Global Focus
Fortin highlighted the global nature of the gaming industry and countered concerns about foreign ownership by pointing out international partnerships, including those in B.C. with U.S.-owned companies.
Industry Questions Moore’s Comments
Industry insiders have also questioned Moore’s public criticism of other provinces’ gaming frameworks, with one source suggesting that focusing on BCLC should be a priority and emphasizing the need for fact-based discussions on public policy.