Edmonton police are sounding the alarm on a booming illegal tobacco market, revealing that contraband products now constitute a staggering portion of all tobacco circulating in Alberta. Authorities welcome new provincial legislation introducing harsher penalties for traffickers, aiming to dismantle a multi-billion-dollar industry dominated by organized crime.
A Multi-Million Dollar Problem
According to city police Supt. Robinder Gill, the illegal trafficking of tobacco has grown significantly since 2019. Police estimate that a shocking 40 per cent of all tobacco sold in Alberta may be illicit. This black market is not just a public health concern; it has a severe financial impact, leading to an estimated annual loss of $150 million in provincial tax revenue.
Gill explained that organized crime groups, primarily operating out of Ontario and Quebec, are drawn to the trade because it offers high profits with relatively low risk. "They are entering this simply because they know the penalties are low, and they know that there is a large market for this, and there isn't that coordination from a jurisdictional standpoint," Gill stated.
Government Responds with Bill 12
In response to the escalating crisis, the Alberta government introduced Bill 12, the Financial Statutes Amendment Act, on Tuesday, November 27, 2025. If passed, the bill would substantially increase the consequences for illegal activities.
The proposed legislation would set penalties for the illegal sale, purchase, and possession of tobacco at triple the amount of tax normally paid on the legal product. Furthermore, the bill mandates that seizures of illegal tobacco be reported to Treasury Board and Finance, creating better oversight.
The office of the finance minister emphasized that contraband tobacco undermines public health, creates unfair competition for law-abiding retailers, and diminishes essential tax revenues. To bolster enforcement, the province has already doubled the number of officers in the Alberta Gaming Liquor and Cannabis (AGLC) tobacco enforcement unit.
Recent Enforcement Successes
The push for tougher laws comes on the heels of several high-profile enforcement actions. In a significant bust, RCMP in Lloydminster seized more than 8.1 million illegal cigarettes during a traffic stop on a semi-truck on Tuesday, November 18, 2025.
Similarly, in Edmonton, a police operation targeting organized crime resulted in the seizure of illegal weapons, ammunition, narcotics, and over 50,000 cigarettes and 9,000 cigars. Superintendent Gill noted that while tobacco is not always the primary target for police, major seizures often occur as a byproduct of investigations into broader criminal networks. He warned that the profits from these illegal sales are often funding more nefarious activities, making the crackdown a critical public safety issue.
