A new report conducted by research firm Ipsos and commissioned by the Canadian Gaming Association (CGA) has found that online gamblers in both Alberta and British Columbia frequently use unregulated sites to do their betting.

The study was conducted between Feb. 24 and March 24 and surveyed 1,319 online gaming players in Alberta and 1,312 in B.C. who had placed an online bet on digital casino games or sports over a three-month period. Respondents were weighted by age (18+ in Alberta and 19+ in B.C.), gender and education level, and all were required to meet the following criteria:

• They had bet on online casino games or sports online within the past three months
• They mentioned that they have played on at least one valid online gambling website or app that offers real-money bets
• Out of the valid websites/apps listed, they had gambled/wagered on at least one of those websites/apps within the past three months

Just 1 in 10 gamblers exclusively use Play Alberta

A bottom-line conclusion of the study was that, in Alberta, nearly 90% of online gamblers have used an unregulated site recently to do their wagering.

The poll found that more than three-quarters (77.3%) of Alberta gamblers meeting the respondent criteria wagered only on unregulated websites in the three-month period. Just one in 10 (10.4%) reported they exclusively used the Alberta Gaming, Liquor and Cannabis’ (AGLC) Play Alberta, which is currently the only government-regulated online gambling site in that province, to gamble across the three months in question.

Less than one-quarter (22.7%) used PlayAlberta at all, even in conjunction with other unregulated sites. That percentage is defined by Ipsos and the CGA as the “channelization” rate. Around one in eight gamblers (12.3%) used a combination of the regulated site and unregulated platforms.

The results are of particular note given the context that Alberta has recently legalized commercial online gambling and is gearing up to open a private-sector market, similar to the step Ontario took in April 2022. While details of that market are still unconfirmed, it is likely that many of the currently unregulated sites being used by Alberta gamblers will seek a licence to operate in the new market, which will be regulated by AGLC and managed by a new Alberta iGaming Corporation.

IPSOS Senior VP Scott Morasch noted in a conversation with CGA President and CEO Paul Burns on the new Get to Know Canadian Gaming podcast that some Albertans who are using unregulated websites and apps to gamble online are likely doing so on multiple non-Play Alberta brands.

What about in BC?

Meanwhile, in B.C., where the British Columbia Lottery Corporation (BCLC) platforms are the only regulated online gambling sites, the data showed a similar trend, albeit one that was more balanced.

In B.C., three out of every five gamblers (60.4%) only used unregulated websites and nearly two in five (39.6%) have wagered on PlayNow. In addition, 15.6% have used a combination of the BCLC’s platform and unregulated sites. Nearly one in four online gamblers (23.9%) reported using only PlayNow, showing that the government has a stronger exclusivity hold on online gambling in B.C. than in Alberta.

Burns and Morasch noted that BCLC’s PlayNow platform has been around for considerably longer than Play Alberta, allowing it time to build a larger and more loyal user base, as well as greater brand recognition and visibility.

‘Significant misconception’ around what is regulated

The study also asserted that most online gamers in Alberta and B.C. who had played on unregulated sites in the past three months mistakenly believe these websites are regulated.

The CGA and IPSOS said highlights “a significant misconception” around online gambling in these provinces.

In Alberta, 93% of gamblers knew that Play Alberta was regulated but, on average, 55% of gamblers who used unregulated websites believed they were playing on regulated platforms. In B.C., those proportions were 96% and 51%, respectively.

How does open-market Ontario compare?

The study was similar to one that the CGA and Ipsos worked together on in Ontario earlier this year.

Prior to Ontario’s commercial regulated iGaming market opening in April 2022, it’s estimated that at least 70% of online gambling in the province was occurring on unregulated sites rather than Ontario Lottery and Gaming’s (OLG) government-run platform.

An Ipsos-CGA study in April found that the Ontario channelization rate is now 83.7%, meaning that 16.3% of the respondents who had gambled online over the previous three months did so only on unregulated websites. However, more than one-fifth (20.2%) of that 83.7% reported they had also wagered on unregulated platforms, as well as with licensed operators.

So, even in Ontario’s three-year-old regulated market, where there are 86 approved online gambling websites including the OLG’s, the grey market still does some business. But the CGA and other advocates will likely point to the data from Alberta and B.C. as evidence of how regulating online gambling can bring the activity into the light.