Since its debut on April 4, 2022, the open online casino market in Ontario has shattered expectations. What was thought to be a risky regulatory gamble has now become a dominant force within the North American region. Evident from its 32% year-over-year increase in performance, it’s clear Ontario’s market is moving from strength to strength. As a result, the region’s well-regulated market has sparked significant interest and investment across the world.
It’s from this immense success that other Canadian provinces are considering adopting a similar regulated iGaming model. Alberta, being at the forefront, is already making plans to execute an Ontario-style regulated market. As Alberta’s iGaming Act awaits Royal Assent from Lieutenant Governor Salma Lakhani, the western province is just months away from ending its monopoly market.
Alberta is gearing up to follow Ontario’s lead in opening a regulated iGaming market, a move that could redefine Canada’s online gambling landscape.
AGCO Partnership Discussions Gain Momentum Across Canadian Provinces
The specific date for Alberta’s iGaming market launch is yet to be announced. All we know from Dale Nally, Minister of Service Alberta and Red Tape Reduction, is that it will be early next year.
Further reaffirming this timeline, CEO and Canadian Gaming Summit resident Paul Burns said:
“The province is continuing to do their work. There are a few stages they need to work through, and there are no timelines to those stages. We are assisting them as best we can. We want them to get it right. As time ticks on regulatory standards will be shared, but we have to get more into the process to get a better idea of what timing is.”
What we do know is that there’s increasing talk about various provincial authorities, including Alberta, partnering up with the Alcohol and Gaming Commission of Ontario (AGCO), Ontario’s gambling regulatory body. Industry insiders suggest that it wouldn’t be far-fetched if we end up seeing a memorandum of understanding between other Canadian provinces and Ontario within the next few months.
While such talks are still in their early stages, the appeal is clear. Rather than starting from scratch, partnering with the AGCO reduces the cost, time, and risk involved in launching a brand new iGaming market. Such partnerships could also provide a level of consistency across Canadian provinces — a move that operators and investors have been long advocating for.
What This Means for the Future of iGaming Regulation in Canada
It’s not unexpected that replicating Ontario’s iGaming model means increased player protections and higher tax revenues for other Canadian provinces. But there are other just as important implications that any Canadian province willing to copy-paste Ontario’s iGaming model must consider.
First is that the AGCO will be the provincial regulator in other jurisdictions as well. Just like PlayNow operates in Saskatchewan and Manitoba under the oversight of the British Columbia Lottery Corporation (BCLC), other Canadian provinces might in a similar way buy the commercial service from the AGCO, which will in turn run a regulated iGaming market in their jurisdictions.
Of course, provincial regulators would need to agree on specific rules and standards that meet local expectations. But with Ontario’s framework as the foundation, smaller provinces like Alberta stand to benefit from working together with the AGCO to build a consistent yet scalable approach. Such a strategy not only reduces startup costs, but also streamlines licensing processes while providing uniform player protections across a variety of player jurisdictions.
Another key consideration is which private operators would be allowed to join specific iGaming markets. Each province features distinct player tastes, where patrons prefer specific outside operators over others. Under an AGCO collaboration, provinces can easily set strict vetting and approval processes while still exercising adequate flexibility to prioritize operators that best suit their local preferences.
Potential Challenges of Partnering with the AGCO
It seems highly likely that other Canadian provinces will replicate Ontario’s iGaming model. If they opt to partner with the AGCO, discussions around responsible gambling must take centre stage.
With every province having its own player safeguards, industry standards, and problem gambling standards in place, adopting Ontario’s RG framework could prove difficult. This is especially true in provinces like Nova Scotia and New Brunswick whose regimes are more conservative towards gambling.
Political roadblocks are another likely hurdle for Canadian provinces moving towards creating a partnership with the AGCO. Not all provincial authorities are going to agree to outsource their iGaming regulatory authority. Plus, relationships with existing lottery corporations, public opinion, and even differences in political priorities are likely to result in further complications during negotiations.
In all, Ontario’s iGaming scene is setting a high standard across the North American region. And while it provides a useful framework for other Canadian provinces to build on, only time will tell if this model can be replicated elsewhere successfully.
Alberta is well on its way to becoming Canada’s next iGaming hub with the launch of its open iGaming market early next year. The question now is whether it will partner with the AGCO or simply draw from Ontario’s successes while developing its own regulatory framework tailored to meet the province’s unique market dynamics. For now, it’s a matter of waiting to see how Alberta’s strategy unfolds.
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