The Canadian iGaming landscape continues to evolve rapidly, with Ontario’s regulated market now well into its stride. As stakeholders across the industry observe these developments, the question on many lips is: which province will be next to embrace a regulated online gambling framework?
All eyes are currently on Alberta, where discussions surrounding Bill 48, the iGaming Alberta Act, signal a potential shift towards a legal and controlled online gaming environment.
If Alberta follows Ontario’s lead, the implications for operators, suppliers, and the provincial economy could be significant. However, the Albertan context presents its own unique opportunities and challenges.
In conversation with iGaming Expert, Dr Eyal Loz, Chief Product Officer at RubyPlay, and Thomas O’Halleran, Director of Operations at Blueprint Gaming, dissect the issue at hand.
iGaming Expert: Considering the distinct differences in economies and population sizes of Alberta and Ontario, can Alberta realistically expect to achieve a similar level of iGaming market revenue as Ontario? What are the key factors that might lead to convergence or divergence in their market potential?
Dr Eyal Loz, Chief Product Officer at RubyPlay
Dr Eyal Loz: It is a very hard question to answer without sounding like a fortune teller reading into maple leaves. Several key factors will influence whether Alberta can reach a similar level of iGaming revenue as Ontario.
These include player demographics, whether the dominant audience is young and tech-savvy or older and more inclined toward traditional brick-and-mortar slot machines, alongside the overall lifetime value of players, which hinges on disposable income, spending habits, and engagement with online platforms. Population size is another major consideration, as is the cultural attitude toward gaming and gambling in general.
Generally speaking, Ontario’s players tend to be younger and engaged with mobile platforms, but they may have less disposable income. In contrast, Alberta players may skew older, with potentially higher lifetime value due to greater spending capacity. Ontario’s population, however, is three times the size of Alberta’s, which naturally boosts its market scale.
Regardless of all that, I’m sure that the Alberta market will be significant in its own right and will be as competitive as all other North American markets.
Thomas O’Halleran, Director of Operations at Blueprint Gaming
Thomas O’Halleran: Absolutely, there is no reason Alberta could not follow Ontario’s lead. Especially with plans for the industry to be built around an open online licensing model inspired by its fellow province’s successful framework.
The dual structure of the market, with the Alberta Gaming, Liquor and Cannabis Corporation to work alongside a newly created government agency, the Alberta iGaming Corporation, mirrors Ontario’s approach where a government regulator and a market conductor operate in parallel.
This move is expected to provide a more streamlined and efficient regulatory environment, attracting operators who may have been deterred previously by the AGLC, and in turn, increase tax revenue and channelisation from the .com market to the licensed market.
iGX: Beyond a simple calculation of more players, are there significant differences in the online gambling preferences, engagement levels, or demographic profiles of the potential player base in Alberta compared to Ontario? How might these nuances influence marketing strategies and product offerings in Alberta?
TOH: I don’t believe so, but in any case, marketing should again emphasise responsible gaming and local connections, while product offerings could be tailored to regional tastes and online engagement patterns. Understanding existing gambling habits within Alberta’s current landscape is crucial for effective strategies.
DEL: In my opinion, the key question to try to answer is who would the iGaming players be and what is the demographic of these players?
If you look at top performing games in Ontario, it’s clear these are modern games made by European based suppliers, featuring cascade mechanics, large game arrays, and colourful casual art themes. You will not find these designs in a brick-and-mortar casino in North America. Therefore, it might be safe to assume that players in Ontario are younger, tech savvy, mobile users.
Marketing strategies will have to take all that into account. How to target non traditional, younger players, but at the same time, how to cross promote from physical properties using more traditional mechanics. Clearly in Ontario the effort to target a different demographic worked really well, and I believe we are to see something similar play out in Alberta.
Can you target a young resource worker from Alberta using the same marketing strategy? Can you introduce mobile gaming to older traditional slot players? These are interesting challenges!
iGX: Building on Ontario’s experience with a significant grey market, what strategies can Alberta implement to effectively transition players to the regulated iGaming market and ensure robust compliance from both domestic and international operators?
DEL: Black and grey markets thrive where regulators are creating the wrong system of incentives for all parties involved. I believe some Central European regulators are on the road of making this mistake and learning these unfortunate lessons.
When looking at Brazil, the regulator there decided to deploy very quickly, creating clarity for operators and suppliers, and putting in place the correct system of incentives.
Brazil switched to a system where the operators have to hold a license and suppliers have to certificate but not license. The Brazilian regulator was very cooperative and proactive in creating a robust market quickly, and it seems that it was very successful in doing so.
Ontario placed a dual responsibility on both suppliers and operators, and is also proactive in engaging with all sides, such that the incentives to cooperate and comply are clear and rewarding.
Alberta will have to consider both models and see which culture they wish to implement. I hope they will take a proactive role in creating a thriving iGaming market. At the end of the day, these are the safest for players!
TOH: Alberta can learn from Ontario’s grey market experience by implementing early, clear communication about the regulated framework’s benefits and aggressively enforcing against unlicensed operators.
An attractive licensing system, incentives for migration to regulated platforms, public awareness campaigns, and collaboration with financial institutions are key.
Robust regulatory oversight, learning from Ontario’s challenges will ensure a smoother transition and stronger compliance from both domestic and international operators.
iGX: What key insights can suppliers leverage to streamline their entry into Alberta? Are there specific adaptations to technology, compliance processes, or partnership strategies that will benefit suppliers looking to operate in Alberta’s potentially similar regulatory environment?
TOH: The most appropriate course would be to mirror the model used by Ontario for regulation and compliance processes, while also enabling an efficient transfer of the approval process for suppliers and operators already licensed in Ontario to start trading in Alberta as soon as possible.
This should be followed by a licensing due diligence that must be completed within a set time from when the supplier starts serving the market. This approach allows for quick adoption and channelisation while still permitting follow-up, and reducing the administration of gaining a license if the supplier already holds an Ontario licence to supply.
DEL: Any new market relies on a hybrid of classical themes with modern technologies and mechanics. We’ve learned that less is more in any market, regardless of age.
In Alberta we are likely to focus on more classic themes to start with, aligning with what players would see on a casino floor, and then let numbers and performance guide our roadmap in the market.
We need to be careful not to saturate the market with content, keeping a mobile-first mentality where we support operators who prioritise apps over sites.