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When Alberta launched its regulated iGaming market on July 13, the province wasn’t simply trying to attract more online gambling. Its bigger objective was to convince Albertans already betting on offshore and black-market websites to move to licensed, provincially regulated platforms. That objective, known as channelization, is quickly becoming the key measure of whether Alberta’s new market succeeds.
While Alberta’s official target is to achieve a 70% channelization rate after its first year and 75% by the end of year two, Alberta iGaming Corporation (AiGC) CEO Dan Keene believes those goals are well within reach—and possibly too conservative.
Speaking on SBC’s iGaming Daily podcast, Keene said the province expects to outperform its initial projections based on what it has seen since launch. If Alberta online casinos and sportsbooks follow a trajectory similar to Ontario’s regulated market, it could exceed its own targets much sooner than expected.
What is Channelization, and Why Does it Matter?
Channelization refers to the rate of legal/regulated play. In other words, it’s the real money action that takes place on licensed/regulated gambling websites.
Imagine ten Albertans regularly gamble online. If seven choose licensed operators such as DraftKings, BetMGM or FanDuel instead of offshore sites, the province has achieved a 70% channelization rate.
Unlike traditional economic targets, channelization isn’t about encouraging more people to gamble. Instead, it’s about ensuring that those who already gamble online do so in an environment with stronger consumer protections, responsible gambling tools, reliable dispute resolution processes and regulatory oversight.
Before Alberta opened its competitive market, provincial estimates suggested that roughly 70% of online gambling already occurred on unregulated websites, leaving only around 30% of activity on the government-run Play Alberta platform. The province’s goal is essentially to reverse that ratio.
Alberta Wants to Flip the Market in Just One Year
The Alberta government has been unusually transparent about what success looks like. According to AiGC, the province wants regulated operators to capture 70% of online gambling activity by July 2027, rising to 75% by the second year. That would represent one of the fastest shifts from grey-market gambling to regulated play anywhere in North America.
Keene, however, suggested Alberta could surpass those benchmarks.
“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.”
The CEO noted that Alberta’s targets were developed through market research rather than optimistic assumptions. Even so, early indicators have given regulators confidence that consumer migration could happen faster than originally forecast. That optimism isn’t entirely surprising.
Unlike jurisdictions building regulated online gambling from scratch, Alberta already had an established customer base. Many residents were already wagering online—they were simply doing so through operators that weren’t licensed by the province. Now, many of those same brands have joined Alberta’s regulated framework.
Ontario Has Already Shown What’s Possible
Much of Alberta’s strategy has been shaped by Ontario’s experience.
When Ontario launched its regulated iGaming market in April 2022, it faced a similar challenge: persuading players to leave familiar offshore websites and switch to licensed alternatives.
Four years later, Ontario’s results have become a benchmark for regulators across Canada. Industry estimates now suggest Ontario has reached roughly 90% channelization, while survey data showed the province had already exceeded 80% during its second year.
For Alberta, those numbers demonstrate that high channelization is achievable when players have access to reputable operators offering competitive products. Keene acknowledged Ontario’s success during the interview, saying Alberta’s targets were informed by research into what had already worked elsewhere.
Rather than reinventing the wheel, Alberta has benefited from observing four years of regulatory refinements in Canada’s first competitive online gambling market. That includes everything from responsible gambling requirements to advertising standards and licensing procedures.
Alberta’s Launch Attracted Familiar Brands and Former Grey-Market Operators
One reason regulators believe Alberta can quickly improve channelization is the breadth of operators that entered the market on launch day. Around 15 operators launched 22 iGaming websites when the regulated market officially opened on July 13. Since then, that number continues to grow. The launch included internationally recognized Alberta sportsbooks like FanDuel alongside casino brands that had previously served Albertans through grey-market channels.
According to Keene, this diversity reflects the reality that Alberta’s online gambling market didn’t suddenly appear overnight. Instead, regulation has brought existing demand into a framework with provincial oversight.
Some companies entered Alberta for the first time, while others made the transition from operating in a legal grey area to becoming fully licensed participants. That migration benefits everyone involved.
Players gain stronger protections and clearer complaint mechanisms. Regulators gain visibility into gambling activity. The province captures tax revenue that previously flowed elsewhere. Most importantly, licensed operators compete on a level playing field under consistent rules.
Revenue Matters — But it’s Not Alberta’s Primary Objective
The province expects its regulated market to generate approximately $76 million in tax revenue during its first year, creating additional funding for public services and responsible gambling initiatives. However, both Keene and Alberta’s Minister of Service Alberta and Red Tape Reduction, Dale Nally, have repeatedly stressed that revenue is not the driving force behind the market.
“The mandate of our market is channelization,” Keene explained. “It’s not to grow iGaming.”
That distinction is important. Critics sometimes argue that expanding regulated gambling simply encourages more betting. But Alberta’s position is different.
Officials maintain that Albertans are already gambling online. The objective is not to create new gamblers but to ensure existing players use websites that comply with provincial standards for fairness, security and responsible gambling.
Success, therefore, will be measured less by how much money the province earns and more by how effectively it moves players away from unregulated operators.
More Gambling Ads are Inevitable — But Probably Temporarily
Advertising has become one of the most debated aspects of regulated online gambling in Canada. Ontario’s market has faced sustained criticism over the volume of sportsbook commercials appearing during sporting events and across digital media. Ahead of Alberta’s launch, some observers questioned whether the province would experience a similar surge.
Nally initially suggested Albertans had already been exposed to much of this marketing because national campaigns from Ontario-based operators regularly reached audiences outside the province. Keene largely agreed.
Many Canadians—including Albertans—were already familiar with brands like BetMGM, FanDuel and DraftKings long before Alberta regulated its own market. Still, Keene acknowledged that advertising has increased since launch. That’s hardly unexpected.
With more than two dozen regulated sites competing for customers, operators are naturally investing in marketing to establish brand recognition and acquire players. The CEO expects that activity to stabilize over time as the market matures, following a pattern seen in other newly regulated jurisdictions.
Alberta Had the Advantage of Learning from Ontario
Perhaps Alberta’s greatest advantage is timing. Unlike Ontario, which had no Canadian blueprint to follow in 2022, Alberta has been able to study four years of regulatory experience before launching its own competitive market. That has allowed policymakers to adopt proven practices while avoiding some of the growing pains Ontario experienced during its early months.
However, Keene believes long-term success will ultimately depend on Albertans themselves. AiGC plans to conduct surveys and public consultations to understand whether players feel the new market is delivering on its promise of safety, transparency and consumer protection.
Those insights could shape future policy changes, ensuring Alberta’s regulatory framework evolves alongside player expectations.
The Real Test Has Already Began
Launching a regulated market is only the beginning. The harder challenge is persuading thousands of Albertans to leave familiar offshore websites in favour of licensed alternatives. If current momentum continues, Alberta could achieve that transition faster than many expected.
For Keene, exceeding the province’s 70% channelization target would represent more than a statistical milestone. It would validate Alberta’s decision to regulate an online gambling market that had operated largely outside provincial oversight for years.
As he aptly described it, Alberta has finished building the airplane. Now comes the task of proving it can fly.
