Alberta's upcoming regulated online gambling market, launching July 13, could become a significant drain on the local economy if it follows Ontario's path, according to a University of Lethbridge researcher. Robert Williams, a gambling researcher, warns that while the market will boost provincial revenue, it may also allow billions of dollars to flow out of the country.
Ontario's iGaming Experience
Ontario launched Canada's first regulated private online gambling system four years ago. Williams notes that despite good regulatory capture, 80 to 85 percent of commercial operators are multinational firms headquartered outside Canada. This means a substantial portion of gambling revenue leaves the country, similar to what Alberta may face.
Williams explains that traditional casinos employ local builders and staff, ensuring operational costs circulate within the local economy. In contrast, online casinos have minimal or no local staff, reducing economic benefits. He states, “Increased online gambling revenue will add more to provincial coffers compared to before, but that doesn’t negate the fact that there’s still a loss to the Alberta economy.”
Alberta's Market Structure
Companies like DraftKings, BetMGM, FanDuel, and Bet365 have applied for licenses to operate in Alberta, joining the existing government-run PlayAlberta platform. Service Alberta Minister Dale Nally projects the market will generate $76 million for the province in its first year, based on a deal requiring operators to pay 20 percent of gross revenue to Alberta.
Williams believes the province could collect up to 50 percent of revenue and still succeed. He points out that Ontario's market is now a $10-billion industry, generating over $2 billion in provincial revenue last year.
Grey Market and Player Capture
Minister Nally has stated that private operators are necessary because most players use illegal platforms, with approximately 70 percent participating in the grey market. Williams attributes poor capture to the late launch of PlayAlberta in 2020, whereas Quebec and British Columbia launched their platforms over 15 years ago and have stronger market capture.
Ontario launched its government platform in 2015 and initially struggled to attract players. However, with private companies now operating, over 90 percent of players choose regulated sites. Williams notes that while government-run platforms keep more Canadian dollars within the country, both online gambling and problem gambling are shrinking outside Ontario, which is the only province that saw an increase.
