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While Alberta’s iGaming expansion has been welcomed by many, it has also raised significant concerns. The first sites under the new system will go live on July 13 2026. But as private operators make their way to the Western province, First Nations leaders are warning of potential consequences.
According to Treaty 8 First Nations Grand Chief Trevor Mercredi, provincial consultations on the iGaming Alberta Act have been limited. That’s why he believes the province’s revenue-sharing model will not adequately offset the expected decline in casino revenue.
Casino Gaming Revenue a Lifeline for Indigenous Communities
Alberta is home to six Host First Nation casinos on reserve lands:
- Stoney Nakoda Resort & Casino – Morley (Stoney Nakoda First Nation)
- Eagle River Casino & Travel Plaza – Whitecourt (Alexis Nakota Sioux Nation)
- Grey Eagle Resort & Casino – Calgary (Tsuut’ina First Nation)
- Casino Dene – Cold Lake (Cold Lake First Nation)
- River Cree Resort & Casino – West Edmonton (Enoch Cree Nation)
- Bear Hills Casino & Travel Resort – Maskwacis (Louis Bull Tribe)
Each of these Host First Nation Casinos is attached to a licensed charity. That way, casino gaming revenue is re-invested into such charities and religious programs, directly benefitting Host First Nation’s communities in matters of health, education, seniors support, housing, and more.
When consultations over the current online gambling legislation began over the summer of 2024, the Alberta government sought input from every First Nation, along with existing physical casino operators, including Host First Nations Casino operators. But Chief Mercredi says consultation has been limited in practice. He also questions whether the 2% gross revenue cut allocated to First Nations provides sufficient protection against losses.
“To say that this is being looked at is something positive, it’s hard for us to see the positive in this right now,” said Mercredi.
Economic Effects Likely to Go Beyond Casino Floor
Laurel Wheeler, a University of Alberta economics professor, warns that the siphoning off of millions in First Nations casino gaming revenue could affect far more than local programming. While the scale of potential losses remains unclear, she says any reduction in these funds could cost communities hundreds of jobs and trigger a much wider economic ripple effect.
Speaking to CBC News, Wheeler cautioned that even modest revenue losses could have outsized consequences:
“Even a small kind of impact on the casino itself could have these knock-on effects,” she said.
Province Defends iGaming Push
Online gambling is hardly new territory for Albertans. The province has operated PlayAlberta, its government-run casino and sports betting platform, since 2020. Despite this regulated option, nearly two-thirds of the province’s online gambling activity has been flowing to unregulated offshore sites. That money never makes it back into provincial coffers.
That’s the reality the new iGaming framework is designed to address. By bringing Alberta online casinos and sportsbooks under a regulated provincial umbrella, the government argues, more revenue stays in Alberta, including the share earmarked for First Nations communities.
Service Alberta Minister Dale Nally put it plainly in an interview with CBC News: “If they’re going to be cannibalized in the future, then they’re being cannibalized currently.”
He also mentioned that while he believes the 2% revenue share will be more than any potential losses, the government won’t consider increasing the revenue share percentage even if concerns arise.
“The black market … is alive and well, and so, for that reason, we’re not committing to replace future dollars,” Nally said.
Similar Situation in Ontario
Alberta’s iGaming framework closely mirrors Ontario online casinos and sportsbooks. Launched on April 4 2022, Ontario iGaming made history as the first-ever Canadian province to offer private-led iGaming services under a new provincial licensing framework. But what was seen as a landmark moment for the industry told a different story for some First Nations communities.
For one, First Nations communities only received their 1.7% revenue share allocation in the market’s second year of operation (the 2024-2025 fiscal year). For the Mississaugas of Scugog Island First Nation (MSIFN), that figure represented years of broken agreements.
According to Chief Kelly LaRocca, MSIFN and the Ontario government have been in disputes over violations of legally binding revenue-sharing commitments. Despite agreements, the provincial government rolled out the private-led iGaming market as well as the Pickering Casino’s construction.
As for the economic impact, a public opinion survey commissioned by MSIFN found that nearly one in five Ontario respondents had stopped visiting the Great Blue Heron Casino after the Pickering facility opened nearby — a figure that jumped to nearly a third among residents in Scugog itself.
For Chief LaRocca, the stakes go well beyond revenue percentages.
“The revenue that Pickering and iGaming generate for the Province of Ontario comes at the direct expense of MSIFN and economic reconciliation,” she said.
“Gaming revenue allows MSIFN to build infrastructure, fund essential public services, and contribute to the local economy. Instead of supporting Indigenous self-governance and reconciliation, the government has chosen to empower national and international corporations to profit at the expense of public good.”
A costly legal battle for First Nations and Ontario taxpayers is ongoing between MSIFN and the province. LaRocca’s message to the province has been direct so far:
“The legal argument is clear. The unfairness is clear. The public opinion is clear,” added Chief LaRocca. “Yet the Province continues to fight us. We are asking for fairness, not a fight. But we will not back down.”
What’s Next for Alberta’s First Nations?
When Alberta’s iGaming market goes live on July 13 2026, the province will become the second in Canada to open a regulated online gambling market. But for many First Nations communities, the launch date is arriving with more questions than answers.
The government has committed to directing 2% of the market’s gross revenue toward First Nations groups. The Ministry of Indigenous Relations is tasked with creating a distribution scheme with First Nations. However, Chief Mercredi disclosed he hasn’t been consulted on how these funds will be allocated.
“Two per cent is the number that they’re willing to share, but not share the rest of the details. It’s very concerning at this point in time because it has the potential to impact the nations,” he said.
As First Nations leaders call for more consultation, what remains clear is that this conversation will not end after the July launch. Using Ontario as a guide, First Nations leaders in Alberta will continue pushing for a fairer share, more transparent consultation, and a seat at the table.
