The story first appeared on Canadian Gaming Business June 25,
Dale Nally , the Alberta Minister of Service Alberta and Red Tape Reduction was one of the speakers most anticipated at last week’s Canadian Gaming Summit.
Nally was given a mandate by Premier Danielle Smith, to evaluate the feasibility of opening Alberta’s online gambling and betting market up to commercial operators. Nally, in a speech at CGS after months of rumours about the outcome of this review, confirmed that Alberta will follow an open license model similar to Ontario. Like in Ontario, this market won’t be regulated directly by the crown corporation that is responsible for gaming in Alberta, Alberta Gaming Liquor and Cannabis. Instead, it will be overseen by an independent entity.
Nally talked with Canadian Gaming Business about his plans for Alberta, the reasons why it should be a market that is so attractive to operators and the importance of First Nations concerns in all future decisions.
What have you considered when evaluating which model is best for Alberta gaming? Which stakeholders have spoken to you and what do you want to achieve?
Nally: It is important that any new igaming models in Alberta continue to put the interests of Albertans first. It is important to generate revenue in order to fund programs and services for Alberta, but also revenue from our First Nation Partners. Maintaining our social commitment is also important. We continue to review best practices in other jurisdictions including Ontario as part of the policy-development process.
Meetings will take place with First Nations, Racing Entertainment Centre operators, and traditional casino operators in Alberta. We want to understand their perspective on potential opportunities and implications of an expanded Alberta igaming system. We began our meetings with First Nations in June and will continue to evaluate what model is best for Alberta throughout the process.
CGB: Although you cite Ontario as an influence directly, it may be hard to copy and paste the model to Alberta. What are the local and distinct elements and differences that make Alberta a unique province?
Alberta is unique, and so is its gaming industry. Our province has the highest tax rates, youngest population and incomes in Canada. Our sports fans are also passionate and show their support for their teams by purchasing game tickets, merchandise or participating in 50/50 drawings.
Alberta’s charitable land-based gaming model is also unique. Alberta’s charitable and religious groups earned $383m in 2022-23 through this model. First Nations charities received $73.3m. Slot revenues from Alberta’s First Nation Casinos are also used to support initiatives within First Nations Communities in Alberta. This revenue totaled $137.9m for 2022-23. Any steps we take to advance online gaming must complement our land-based model.
Paul Burns, President and CEO of CGA: Canadian Gaming Association has stated that Alberta is one of Canada’s top gaming provinces in terms per capita spending. What is the financial and/or other opportunity that you, or any of your supporters, see for regulated gaming in the province?
PlayAlberta is a good platform with a wide variety of gaming options, but current estimates suggest that it only captures about 45 per cent of Alberta’s online gambling market. PlayAlberta has a lot of options for gaming, but according to current estimations it only accounts for about 45 percent of the online gaming market in Alberta. Rest of the market is controlled by operators who are not regulated and may or may not have social responsibility programs that comply with Alberta standards.
Albertans will have more choice and more money in Alberta if we open up our market.
CGB: A healthy market for gaming is dependent on responsible gambling. Recent cases, such as Shawn Lemon being banned from the CFL after betting in Alberta while playing football has brought to light the interaction between betting and sports. What can be done to improve the sporting integrity of Alberta?
We are looking for ways to increase the market in Alberta because we want to ensure the integrity of gambling online. Unregulated gaming websites are estimated to hold about 55 percent of Alberta’s online gambling market. Unregulated gaming sites are exempt from Alberta’s Social Responsibility Policies, which is an important tool to promote and support responsible gambling behaviour among Albertans.
It is important to keep gaming fun and enjoyable by having the right tools available. In July 2023 I will be working with my Indigenous partners, to complete and implement Alberta’s Online Gaming Strategy, with an emphasis on responsible gaming. That’s exactly what we plan to do.
The government, the betting industry and individuals will have to continue to monitor incidents like that of Shawn Lemon. You are correct that you want integrity to be seen in the way sports are played as well as the outcomes that are related to the sporting events that people are betting on.
CGB: Alberta is a large state with a lot of people, an active lottery, and many sports enthusiasts. Your statement that operators would like Alberta, and stay because of the low tax rates is correct. You have said that operators will be attracted to the low taxes in Alberta.
Albertans, and Alberta businesses pay the lowest total taxes of any province in Canada. The general corporate tax rate in Alberta is 8 per cent. This is 30 per cent less than the second lowest provincial level. Our province continues to be business friendly, as demonstrated by the strong emphasis we place on Red Tape Reduction, and removing unnecessary requirements and processes that hinder businesses, investment and innovation.
We have been able to eliminate 33 percent of our regulations since 2019. And we are still looking for ways to make it easier on Albertans, as well as Alberta businesses. Albertans also have more money to spend thanks to their higher salaries, reduced personal tax rates and the absence of a provincial sales taxes.
Albertans also show their love of sports by supporting their professional teams and their community foundations. Edmonton Oilers 50/50 drawings, for instance, have generated more than $2,000 per game and raised millions of dollars for charities and local community groups in the regular season and playoffs.
CGB: Last month, your office informed us that Alberta would engage with a number of stakeholders in this year. Some have suggested that the launch of a regulated market for online gambling could take place in early 2025. What is the projected timeframe?
We expect to conclude the first round in July. This summer, we will engage traditional casino operators as well as Racing Entertainment Centre operators to learn their perspective on potential opportunities and implications of an expanded gaming model for Alberta. The conversations we have will help us develop our final gaming model and shape our igaming strategies.
We expect to have additional details available this autumn, after these first engagements.
