Alberta Sports Betting Bill Advances

Lawmakers advanced bill 48 through its second reading, which brings Alberta sports betting closer to becoming a more open market.

The bill aims to provide a framework for regulated online gambling in the province and would allow private operators to enter the market. If passed, it would establish iGaming Alberta, an independent regulator that gives licenses to sportsbooks.

The Committee of the Whole will now discuss the future of iGaming in Alberta and may make amendments before a third reading.

Minister Dale Nally, who proposed the bill, had hoped to launch the market later this year, but that looks unlikely at this stage.

Nevertheless, it marks a step forward towards developing regulated sports betting in the state.

Online betting in Canada

At the moment, only Ontario has opened up to commercial partners through a similar bill passed in 2021. The market officially launched in April 2022, and the province established its own independent regulator, iGaming Ontario, last year.

As a result, operators such as Stake are not licensed to operate in Ontario. The popular platform endorsed by Drake allows players from other provinces to gamble online.

Similar operators that are prohibited in the US can attract Canadian players, including other social casinos, offshore sportsbooks, and crypto casinos.

Unregulated gambling thriving

Currently, sportsbooks operate officially through Alberta’s lottery, Play Alberta. Last year, players staked over CAD 5 billion, but many suspect that is only a fraction of the market.

Some studies have indicated that Alberta has one of the highest rates of illegal gambling. New regulations would look to clamp down on the money going to offshore and unregulated platforms.

Nally commented, “The reality is that online gambling is alive and well in this province. Let’s suppose this legislation doesn’t pass; that won’t stop online gambling from continuing to grow.”

He also stressed that this bill proposes to make gambling safer for residents, not promote Alberta sports betting.

Sportsbooks “super ready” for Alberta sports betting

Many of the sportsbooks licensed in Ontario are excited to enter the market in Alberta. Super Group’s CEO Neal Menashe said his company are “super ready” for Alberta to follow Ontario’s model.

The group decided to pull its brand, Betway, from the US market, but is staying in Canada.

“Everything we did in Ontario, we’ve learned, we’ve learned how to do it even better,” Menashe said. “So the teams are ready and waiting when Alberta regulates. And across the board in all these markets, we are optimizing everywhere.”

Penn Entertainment also believes Alberta could be a great revenue generator. Penn purchased theScore for $2 billion in 2021, and the brand has been a success in Ontario. They hope to do the same in Alberta while keeping Barstool Bet and ESPN Bet focused on the US.

Speaking on Alberta sports betting, CEO Jay Snowden commented, “We anticipate that the success we’ve seen in Ontario with theScore Bet, we would be able to replicate that in Alberta. theScore is a very popular brand throughout Canada.”

He added, “It’s not just a Toronto or Ontario thing. So given the success we’ve had in Ontario, and given that Alberta will have very similar tax rates as we understand it, and be both OSB and iCasino, we think it’s going to be a really important North American market for us, probably a top three or four market for us.”

The bill still has some progress to make, but the Alberta market could open up in 2025 or 2026.