Alberta To Require Stop To 'Unregulated' Sports Betting Before IGaming Launches

Alberta's future plans for online betting might be very black and white, with little space for the shades of "grey" that some operators are currently utilizing to take bets in the Western Canadian province.


- Alberta released draft rules for its upcoming iGaming market that require operators to stop all unregulated sports betting activity.


- The requirements set stringent requirements for operators, consisting of player age and place checks, self-exclusion tools, and anti-money laundering measures.


- Unlike Ontario, Alberta prepares to explicitly prohibit grey market activity from the outset to rapidly move wagering onto provincially managed platforms.


The Alberta Gaming, Liquor and Cannabis Commission (AGLC) issued an iGaming "publication" on Jan. 13 that revealed the regulator published "requirements and requirements" that will use to operators planning to take part in the province's competitive market for online betting.


That market has yet to launch, however the publication of the rules and the current start of the registration period for operators reveal the province is working on it.


Registration will be among the two crucial actions for prospective iGaming operators in Alberta, which prepares to permit multiple private-sector operators to provide online sports wagering and Alberta online casinos. The other is signing an agreement with a new entity, the Alberta iGaming Corporation, further outlining an operator's obligations.


Included in the initial draft of rules are requirements for gamers to be 18 years or older, physically located in Alberta, and able to self-exclude themselves from all websites in the province. There is much, much more as well, including anti-money laundering and suspicious wagering-related standards.


As reported by @GamingNewsCA today, registration is now open for sports wagering and iCasino operators seeking to launch in Alberta's new iGaming market. Simply put, registration is among two crucial steps that operators should take before they can release in AB's iGaming scheme. pic.twitter.com/I5WealzkmR


The first batch of rules also recommends there will be limited persistence afforded to "grey market" operators, which is where Albertans have been doing the bulk of their online gaming.


"Registered Operators and registered Goods or Services Suppliers must stop all uncontrolled gaming activities in Alberta's iGaming market if, to perform those activities in Alberta's regulated online lottery game scheme, those activities would otherwise require registration under the iGaming Alberta Act or Gaming, Liquor and Cannabis Act," the standards say.


The very same batch of rules states that "authorized Operators and registered Goods or Services Suppliers should not participate in any contracts or plans with any unregistered individual who is offering any products or services that would otherwise require registration in Alberta."


In other words, the standards for the brand-new Alberta sports betting market recommend operators may have to make a swifter shift into the regulated market than they did in Ontario, which is the example Alberta is following.


That might also suggest Albertans utilizing those websites might see futures wagers voided or other action taken by their usual sportsbook operator as they work to adhere to the province's iGaming requirements.


No lollygagging


Alberta's de facto iGaming minister, Dale Nally, had already stated a much shorter shift duration could be possible. However, talking to Covers a week after the release of the requirements, Nally likewise said his province isn't ready to "hamper" the grey market.


Nally, the Minister for Service Alberta and Red Tape Reduction, said there will be a "runway" for grey- or black-market operators to shift into the regulated market. However, those operators will also need to show they are making a "genuine" effort to make the switch.


"We're going to invite them, we're going to deal with them, but we require to see that they are sincere about entering our regulated area," . "A date will come when we have actually stated we've offered you sufficient time to come on board, and if you haven't come on board already, then we're going to start using whatever tools at our disposal and roadblocks for the black market."


There might be more than a few companies to which Alberta's "uncontrolled" iGaming requirement may apply. The bulk of online betting in Alberta is taking place on sites that are controlled offshore or outside the province, not by the province itself. That's one major reason why the Alberta government is attempting to reform how online gaming is carried out in the province, to channel that grey-market activity onto provincially regulated websites.


So, the secret to the success of the brand-new Alberta sports wagering market will be transitioning grey operators into the provincially managed market. And an important part of that transition will be the requirement for operators to stop any "unregulated" activity.


This is what Ontario did in the fall of 2022. The province is the very first and just in Canada hence far to launch a competitive iGaming market that permits several private-sector operators to participate. And, like in Alberta, the bulk of online betting in Ontario before the launch of its competitive iGaming market was with grey-market operators.


The huge bulk of online gambling in Ontario now occurs with provincially controlled operators, including several previously grey operators that transitioned into the province's new, regulated market.


Let's prepare yourself to control


However, Ontario offered operators around seven months before it upgraded its policies to include a tough deadline for them to abandon their grey- market operations or have actually those activities held against them if they tried to join the regulated market.


This upset some operators that had gone live in Ontario's regulated market instantly, as they were forced to comply with the province's guidelines and revenue-sharing requirements while others delayed their involvement and continued to take bets from Ontarians.


So, again, Alberta's rules might indicate a tighter window for operators to shift into the province's regulated market. Instead of modifying its standards months later on to state no more unregulated activity, Alberta is poised to consist of the requirement at the start of its regulated market.


The uncontrolled activity-related paragraphs are just 2 of lots of in the 85 pages of guidelines and requirements published by the AGLC. The company will be the regulator of the competitive iGaming market in addition to staying an operator of Play Alberta, the province's only authorized iGaming site.