Alberta is doubling down on innovation and growth in its gaming industry with Bill-16, the Red Tape Reduction Statutes Amendment Act, 2024. Passed in May 2024, the legislation amends the Gaming, Liquor and Cannabis Act (the "Act"), laying the groundwork for significant changes in the province's gaming sector.
Under Bill-16, Alberta will shift toward allowing private operators, handpicked by the government, to provide gaming services and products. This marks a departure from the current model, where such responsibilities lie solely with the Alberta Gaming, Liquor and Cannabis Commission (the "AGLC"). With a clear intent to modernize its approach, Alberta aims to open the table for private players while maintaining a strong regulatory framework.
Dale Nally, Alberta's Minister of Service Alberta and Red Tape Reduction, has emphasized the province's commitment to creating a competitive and regulated online gaming market. Drawing inspiration from Ontario's success, Alberta is positioning itself as a new frontier for iGaming, ready to level up its gaming sector.
Alberta's iGaming playbook: Lessons from Ontario
Ontario's experience provides a blueprint for Alberta's gaming overhaul. In 2021, Ontario reshaped its online gaming industry by introducing a competitive model that allowed private operators to enter the market alongside the Ontario Lottery and Gaming Corporation ("OLG"). Since then, Ontario's iGaming market has expanded rapidly, with over 47 operators offering more than 77 gaming websites.
The results have been impressive: Ontario's iGaming sector generated $2.4 billion in revenue for the 2023–24 period ending March 31, 2024, a 72% increase over the previous year. Deloitte's five-year revenue projections for the sector were nearly achieved within just two years—a testament to the demand for online gaming under a competitive framework.
The Alberta advantage: A strong hand for investors
Alberta's economic strengths and cultural landscape suggest it could rival Ontario's gaming success. With Canada's highest GDP per capita and among the highest per capita spending on gambling, the province is uniquely positioned to foster a thriving iGaming market.
Private operators entering Alberta's market stand to benefit from:
- A wealthy, gaming-friendly population: Albertans' disposable income and interest in gaming present fertile ground for growth.
- A streamlined regulatory framework: Bill-16 underscores the province's commitment to reducing red tape, ensuring a business-friendly environment.
- Emerging opportunities in iGaming: From online casinos to sports betting, Alberta's new model promises a dynamic and innovative market for private operators.
However, success in Alberta's gaming sector will depend on navigating the upcoming regulatory framework—a deck that operators need to play strategically.
Gowling WLG: Your partner in Alberta's gaming evolution
At Gowling WLG, we've been dealt a winning hand when it comes to gaming law. Our extensive experience advising operators in Ontario's iGaming market has given us unparalleled insights into the regulatory, operational, and strategic considerations that private operators face. This positions us perfectly to help clients succeed as Alberta shuffles its gaming framework.
Our team offers tailored guidance on:
- Regulatory compliance: Understanding Alberta's licensing, reporting, and operational requirements.
- Market entry strategies: Positioning your business for success in a competitive environment.
- Policy advocacy: Navigating ongoing regulatory developments to protect your interests.
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