Posted on: October 8, 2024, 09:31h.
Last updated on: October 8, 2024, 09:52h.
The developing news in Alberta will no doubt be front and center at G2E on Wednesday, 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. Wednesday at The Venetian Expo in Las Vegas.
Alberta Working Toward 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 cooperation 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 toward 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 in the province, 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% increase from the previous quarter, 31% year-over-year increase). The market saw $726 million in gaming revenue (5.2% increase over Q4, 34% year-over-year increase).
In Ontario, the channelization of players from the grey market to regulated operators has been very successful since market launch at 86.4%, according to an Ipsos study in February 2024.
That makes it one of North America’s most competitive jurisdictions.
Wednesday’s panel features two of Ontario’s leading power brokers, Martha Otton, executive director, iGaming Ontario, and Karin Schnarr, CEO and registrar of the Alcohol and Gaming Commission of Ontario, the provincial regulator.
Nally Will Update Industry on Alberta’s Market Launch
A bulk of the chatter about the Canadian market of late has been about Alberta, which will also be a topic of discussion on Wednesday.
Dale Nally, minister of Service Alberta and Red Tape Reduction for the Alberta government will discuss his organization’s 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 toward a market launch, an industry source said the proposal “went sideways” when it reached cabinet.
Concerns included a proposed 25% tax rate for operators that come into the market. There were also reported worries about rushing to market launch too fast, and granting licenses for companies already 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. of the proposed launch
“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’s been significant interest from some of the bigger iGaming operators about doing business in Alberta when the market opens as 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 at BVGroup.
The company’s BetVictor brand is licensed and operating in Ontario.
“The folks we talk to on a regular basis are telling me midyear 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 s “Sizable” Gaming Market
When asked about the potential of the Alberta iGaming market, Harper said while it’s not as big as Ontario, and isn’t a “behemoth” like Toronto, Alberta is still a 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 center at Wednesday’s G2E panel discussion.
“I am sure the minister will share some thoughts on where they are heading,” Burns said.
