Alberta forecasts $53M in first-year iGaming tax revenue
Alberta will launch its competitive online gambling market on 13 July, allowing licensed private operators to offer online gambling services alongside the government run PlayAlberta.
According to Service Alberta and Red Tape Reduction Minister Dale Nally, the new market is expected to generate approximately CAD$76 million ($53 million) in revenue during its first year, as reported by the Edmonton Journal. The government said the initiative aims to improve consumer protection and encourage players using offshore gambling websites to switch to licensed, regulated operators.
Reasons behind Alberta’s launch
For many years, the legal status of online gambling in Alberta was unclear. Although Alberta has its own official website, PlayAlberta, most Albertans used offshore operators. According to studies, non-Canadian websites account for up to 70 per cent of all online gaming in Alberta.
Blocking offshore locations proved impractical, so the government pursued a different strategy: regulation. Nally stated, “We can’t turn off the internet.” The new iGaming model in Alberta encourages operators from other countries to obtain licences, follow rules, pay taxes, and engage in responsible gambling. The theory is that if players can access familiar products with secure payments and consumer protections, they will naturally gravitate towards regulated platforms.
Learning from Ontario’s success
Alberta has looked closely at Ontario, which opened its competitive online gambling market in 2022. According to the Government of Ontario’s 2023 Budget, Ontario’s first year showed that allowing private operators could boost participation in regulated gambling and generate significant public revenue, about C$87 million. Over 91 per cent of online gamblers in Ontario now use licensed sites, according to the Alcohol and Gaming Commission of Ontario.
That migration is what Alberta hopes to replicate. Alberta has adopted many of Ontario’s practices while tailoring its framework to local needs, including more funding for responsible gambling and financial support for First Nations communities. If Alberta achieves similar adoption rates, it could sharply reduce the influence of the grey market in just a few years.
Alberta’s gambling framework
Alberta’s new iGaming sector establishes a regulatory framework that substitutes monopoly control with competition. PlayAlberta, the government owned platform, will now work with 51 licensed gambling businesses.
International licensed operators include BetMGM, DraftKings, FanDuel, and Bet365, as well as CasinoDays in Canada. All of them must meet Alberta’s licensing criteria, responsible gambling requirements, consumer protection, and advertising restrictions. In addition, the operators should contribute to the development of responsible gambling and community development activities.
Expected revenue
Alberta’s new competitive online gambling sector is estimated to generate approximately CAD$76 million ($53 million) in revenue in its first year. The calculation is based on the estimated number of participants, licence fees, and tax revenues. However, while the revenues are large, the primary goal of this project is to ensure that gambling occurs safely.
Competition is about to transform Alberta’s online gambling business rapidly. With licensed international and Canadian operators joining the market, players now have a broader selection of options, all of which are governed by provincial regulations.
Player protection takes priority
Regulation of online gambling in Alberta is being created with the goal of protecting players. Government officials realise that gambling carries some inherent risks, and the regulatory structure is intended to improve gambling safety.
Every licensed operator must take part in harm reduction programmes. These include age checks, deposit limits, self assessment tools, clear player information, and access to support services. Unlike the offshore market, operators are now required to contribute directly to prevention and treatment efforts, embedding social responsibility into the system.
One of the protections is Alberta’s provincial self exclusion programme. Rather than signing up separately with each operator, players can now exclude themselves from all regulated sites through a single process.
This new policy has imposed strict regulations on advertising. Operators must closely adhere to restrictions when advertising on television, radio, online, and social media. The operators must follow particular criteria for television, radio, and social media. The goal is to encourage individuals to use the licensed websites without flooding the market with adverts. Regulators will monitor compliance and sanction operators who violate the regulations, demonstrating that oversight is a continuous process.
Investing in safer gambling Initiatives
Alberta requires every licensed operator to contribute 1 per cent of gross gaming revenue to responsible gambling initiatives. These funds support education, prevention, counselling, and treatment services.
In Alberta’s revenue sharing scheme, earnings generated by operators are split between them and the provincial government. Operators retain more than 80 per cent of net gaming revenue, with the provincial government receiving 20 per cent for regulatory expenditures and service provision. Furthermore, 2 per cent of total sales goes towards supporting First Nations communities through local development, social services, and community objectives.
Alberta’s move may have an impact on other jurisdictions that continue to employ government-controlled systems. If Alberta is successful in drawing players from foreign websites while keeping stringent controls, other governments will emulate a similar strategy.
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