The latest estimates suggest that Ontario has achieved an online gambling channelization rate (the degree to which play has moved from unregulated sites to licensed operators) of 90%, four years into its commercial market. What is the true goal for Alberta iGaming?
Publicly, Alberta iGaming Corporation (AiGC) and the provincial government say they are aiming for a 70% channelization rate after year one and a 75% rate by the end of year two. The AiGC’s CEO Dan Keene suggests that’s actually a low-ball estimate.
“Our goal in the first two years is to get to 75%,” Keene told SBC’s iGaming Daily podcast. “We saw the great channelization Ontario was able to achieve. Ours wasn’t a statistic pulled out of nowhere; it was something built on research.
“We think we can overachieve on that number. We will, going forward, based on what I’ve seen.”
Keene added that AiGC’s forecast predicts that the new market will raise $76m in Alberta iGaming tax revenue for the provincial government in the first year to support various services in Alberta. But, like Minister Dale Nally, Keene insisted that revenue generation is not the primary goal.
“The mandate of our market is channelization. It’s not to grow iGaming. Will iGaming grow? I’m sure it will. But the mandate is to channelize a market that’s already been here for decades.”
All are welcome in Alberta
Keene spoke at length to host Charlie Horner and Canadian Gaming Business editor Tom Nightingale about Alberta’s successful launch day on July 13, when around 15 operators took a total of 22 separate online sports betting and/or casino sites live in the province’s new regulated market. That later number has since increased to 24 Alberta iGaming sites as of the time of writing.
The first wave of sites included a range that spanned DraftKings to DAZN Bet to Delta Casino, and Keene said that kind of diversity is one reason Alberta will be successful.
“The [mix of operators] really confirms the notion that the market has been here for decades,” Keene said. “We do have new entrants to Alberta and we also have operators that have been in the Alberta market operating in the grey for a period of time that have made the right decision, quite frankly, to join the regulated space…
“Now, our job is to continue to channelize and to enforce the standards and regulations and make sure that we have a commercially viable market that Albertans can trust going forward.”
Gambling ads are bound to increase
The iGaming Daily episode also broached the topic of gambling advertising, as mental health and youth support experts, mainstream media, and the general population continue to voice concerns about the frequency and prominence of betting ads in Ontario and across Canada.
Speaking at a press conference on Alberta iGaming market launch day on July 13, Minister Nally told reporters that he does not believe Alberta will see a significant increase in gambling advertising during and after its launch, noting that Alberta has already been getting advertising bleeding over from Ontario’s market.
Keene is of the same school of thought.
“I do align with Minister Nally’s thoughts,” the AiGC CEO said. “With Ontario going first, much of the advertising was national advertising that all Canadians have been introduced to already, whether they like it or not. A portion of that advertising that has taken place has already been seen by Albertans, because of the national spillover.”
However, Keene did add that the province is already seeing more gambling advertising. When a new market launches with two dozen Alberta iGaming sites up and running and competing for players’ time and money, that is inevitable.
“There will be more, operators are going to compete. I think it’s fair to say that we’re already seeing an increase in advertising. In time, I think you’ll see some of that abate. It’s not uncommon for there to be more advertising at the start than there is in six months or a year or two years.”
Time for Alberta to fly
Alberta has four years of Ontario iteration and development to look back on for inspiration and direction. Canada’s first iGaming province has tweaked its regulations since first opening in April 2022, making changes to things like its rules on advertising. Ontario also reputedly achieved around 80% channelization of play by the start of its second year.
Keene knows that AiGC remaining flexible and responsive to the needs of both gaming stakeholders and the Alberta public will be vital to the long-term success of the long-awaited market.
“We’ll be doing surveys and focus groups to understand how Albertans feel about this. We can gladhand and pat ourselves on the back as much as we want, but it’s going to be Albertans that decide whether or not we’ve been successful in providing a market that is safe, regulated, and providing protections.
“You’re building the airplane, now you’ve got to fly it.”
Catch the full interview with Alberta iGaming Corporation CEO Dan Keene on the iGaming Daily podcast via Spotify, YouTube, or wherever you get your podcasts.
