Posted on: October 8, 2024, 09:31h.
Last updated on: October 8, 2024, 09:31h.
The developing news in Alberta will no doubt be front and center tomorrow at G2E, with a panel discussion on the Canadian market featuring the government minister quarterbacking that province’s igaming expansion.
“Understanding the Changing Canadian iGaming Landscape” is the topic of the panel. That’s scheduled for 3:10 p.m. tomorrow in The Venetian Expo in Las Vegas.
Alberta Working Towards an Ontario-Style Model
Led by Paul Burns, President & CEO of the Canadian Gaming Association, the panel will discuss the evolution of the Canadian market, including its ongoing potential.
“We still have a large, unregulated market in the country,” Burns said. “As more governments start to look [at a competitive model] they need to understand how the igaming business works, and how why finding more levels of co-operation across jurisdictions can be beneficial for the industry [in Canada]. We’ll be talking about sustainability and growth in Canada, and how we can learn from the Ontario and Alberta experiences.”
Ontario’s regulated open market went live in April 2022. Alberta is working towards an Ontario-style model.
Burns said he sees more interest in the Canadian market from international companies.
‘Those that have made the investment in Ontario hope to see they can leverage more across the country,” he added. “How can they grow their businesses in other provinces over time?”
Canadian Industry Power Brokers at G2E
Ontario currently has 51 companies licensed and operating, and 83 igaming websites. According to the latest market performance report released by iGaming Ontario, FY 2024-25 Q1 (April 1 to June 30, 2024), Ontario saw $18.4 billion in wagers (3.4 per cent increase from the previous quarter, 31 per cent year -over-year increase). The market saw $726 million in gaming revenue (5.2 per cent increase over Q4, 34 per cent year-over-year increase).
In Ontario, channelization of players from the grey market to regulated operators has been very successful since market launch – 86.4 per cent, according to an Ipsos study in February 2024.
That makes it one of North America’s most competitive jurisdictions.
Tomorrow’s panel features two of Ontario’s leading power brokers – Martha Otton, Executive Director, iGaming Ontario, and Karin Schnarr, CEO and Registrar, Alcohol and Gaming Commission of Ontario, the provincial regulator.
Nally Will Update Industry on Alberta’s Market Launch
However, a bulk of the chatter about the Canadian market of late has been about Alberta.
Also on tomorrow’s panel will be Dale Nally, Minister of Service Alberta and Red Tape Reduction, for the Alberta government. Nally has been at the forefront of expanding Alberta’s igaming landscape. He has a mandate to expand competition in the igaming space in that province.
Alberta has been in the news the past few days because after much speculation about how fast the government was moving to a market launch, an industry source said the proposal “went sideways” when it reached cabinet.
Concerns in part were around a proposed 25 per cent tax rate for operators that come into the market. There was also reportedly worries about rushing to market launch too fast, granting licenses for companies already licensed and doing business in Ontario as opposed to a launch more rooted in legislation, with an independent regulator.
Alberta Market Launch Gets Pushed Back
“I think they’re going to really take the time to get it right,” Burns said. “There has been talk about [going live] before Christmas. I think that will be too early. It’s going to be next year. They have a lot of work still to do. I think that their enthusiasm is still strong, and they’re working hard, but they got a lot to do.”
There has been a ton of interest from some of the bigger igaming operators about doing business in Alberta when the market opens –PointsBet Canada, theScore Bet (PENN), Betway (Super Group), and NorthStar Bets have all made public statements that they’ll be jumping in.
“Everyone is interested in the Canadian market,” said Mark Harper, Head of Emerging Markets, BVGroup.
The company’s BetVictor brand is licensed and operating in Ontario.
“The folks we talk to on a regular basis are telling me mid year to even fall next year,” he said. “But then I speak to other folks and they tell me it might be late spring or early summer. Alberta is definitely in our plans. Everyone’s done very well in the Ontario market. I think Alberta will behave in a similar fashion.”
Alberta Projected to be “Sizable” Gaming Market
When asked about the potential of the Alberta igaming market, Harper said while it’s obviously not as big as Ontario, and isn’t a “behemoth” like Toronto, Alberta is still a very fervent sports market, with a lot of disposable income.
“It won’t be as large as Ontario in terms of handle and GGR but it will still be a sizable market,” Harper said.
Burns said the developing Alberta news means Nally will be front and centre at tomorrow’s G2E panel discussion.
“I am sure the minister will share some thoughts on where they are heading,” Burns said.
