EDMONTON — The Government of Alberta is moving closer to launching the Alberta iGaming Corporation, which will allow third-party online gambling sites to operate legally in Alberta while also generating additional revenue for a province facing a $9.4 billion deficit. "If we could shut the black market and online gambling down, we would, but the fact is that the online gambling industry has been alive and well in Canada for many years," said Minister of Service Alberta and Red Tape Reduction Dale Nally in an interview with the Western Standard. Under old Alberta legislation, the provincially run iGaming website, Play Alberta, was Alberta's only legal gambling site. Despite that, workarounds and other grey-area rules allowed for other third-party websites to operate in Alberta without regulations or restrictions. Nally said some of these websites have been doing some "repugnant" things and targeting vulnerable Albertans in their advertising and marketing. This included targeting Albertans with gambling issues by sending them emails and rewards bonuses. "So what we're saying is, look, online gambling is already here. If it's going to be here, let's create a regulatory ecosystem that puts player safety and responsibility first," Nally said..In May 2025, the Government of Alberta passed the iGaming Alberta Act, which will allow these third-party businesses to operate legally in Alberta but will require them to comply with provincial rules and regulations on advertising and consumer protection. Regulations include bans on targeting or aiming their campaigns towards vulnerable Albertans, such as children and individuals with problem gambling habits, and not allowing athletes to be used in advertisements. The websites will also have restrictions on gambling, such as limits on how much an individual can bet and notifications about how much time they have spent using the service. Along with requiring businesses to send users a monthly statement on their winnings/losses. Nally said he is most proud of the system-wide self-exclusion that will be available to Albertans. "That means if any Albertan says, 'Okay, that's it. I'm done,' they're gonna be able to push a button that will exclude them from online gambling sites," Nally said."It'll exclude them from land-based casinos and racing entertainment centers in the province of Alberta, and it's going to make it very difficult for them to be able to gamble."A study published in the Canadian Medical Association Journal on March 2 revealed that Ontario saw a 300% increase in young-men contacting the province's mental health helpline over related gambling problems after the province opened the door for third-party businesses to operate. Nally said Alberta has learned from Ontario's example and instituted systems like self-exclusion and will ensure that Albertans who are struggling get the help they need, but there is only so much the provincial government can do. .Potential revenue is the other side of the province's decision to welcome third-party businesses. Alberta Gaming, Liquor and Cannabis reported $234.9 million in sales for Play Alberta in 2024, but they also projected that this represents only about 30% of Alberta's iGaming market. Budget 2026 projected $75 million in revenue from AiGC in the 2026/2027 fiscal year, with that figure ballooning to $109 million per year by 2029.According to Nally, revenue will be generated through a 20% tax on iGaming businesses. "And so 20% is not a lot, but you have to appreciate that, if we make it too high, they're not going to join our gambling ecosystem," Nally said. "And operators have said to us, they want to be legal, they want to be regulated, and they want to be responsible, and they want to they want a light tax rate.""From what we've seen, what other jurisdictions have done, 80-20 seems to be the sweet spot, that it will attract operators, and it will help with our channelization, so that we can stamp out the black market."From revenue, 2% will go to supporting First Nations, and 1% will be allocated to responsible gambling initiatives, including helping Albertans with treatment, research, and education. .Nally said third-party businesses in North American and Europe have expressed interest in entering the Alberta iGaming market once it is operational. As for the idea of raising the legal age for online gambling, Nally said that would be unproductive and just drive young adults to the illegal markets. "If it was up to me, we wouldn't have any online gambling, but we know that that's not an option, so we're trying to take the gambling that does exist and make it as responsible as we can," Nally said."And I want to be clear, gambling will never be safe, but you can make it safer, and you can make it more responsible, and that's what we're opting to do. "The same goes for restricting what individuals can wager on with these services. "Right now, there are gray and black market operators that allow you to bet on ping pong over in Poland, college basketball, and even the Olympics, quite frankly," Nally said. "So we're just looking to emulate what is already available, and only to do it in a more responsible, a little safer fashion."
