Alarming Findings
As Alberta prepares to launch a regulated online gambling market, a new study reveals a surprising trend. Nearly 90% of online gamblers in the province continue to wager on unregulated platforms, and over half cannot identify the difference between unregulated and regulated gambling sites.
The study, conducted between February 24 and March 24 this year, surveyed more than 2,600 online gamblers in Alberta and British Columbia. All participants reported that they had placed sports bets or played casino games within the three months preceding the study.
In Alberta, only 10.4% of respondents said they exclusively used Play Alberta. Play Alberta is currently the province’s only regulated platform, and it is operated by the Alberta Gaming, Liquor and Cannabis (AGLC).
A concerning proportion, 77.3%, reported only using unregulated sites. The remaining 12.3% are gambling across both regulated and unregulated platforms. More than half (55%) of Albertan gamblers using unregulated sites mistakenly believed they were playing with a legal site.
The findings, released by the Canadian Gaming Association (CGA) and research firm Ipsos, underscore significant challenges regulators face as the province prepares to transition players to a legal and regulated system. However, this survey of existing gamblers indicates there will be a struggle to shift players away from illegal or unregulated providers and towards licensed options.
The province has legalised commercial online gambling and is in the process of launching a private-sector gambling model. The structure of Alberta’s system is not yet finalised, but it is likely to mirror Ontario’s open gambling market, which debuted in April 2022. Many of the current grey-market operators are expected to apply for licenses under the upcoming system.
British Columbia Troubles
In neighbouring British Columbia, the situation appears more balanced, but unregulated gambling still dominates. 60% of online gamblers in B.C. said they only used unregulated sites, compared to 23.9% who said they rely solely on the B.C. Lottery Corporation’s (BCLC) PlayNow platform. That leaves 15.6% who say they use both PlayNow and unregulated options. 51% of unregulated gamblers in B.C. believe they are using legal platforms.
IPSOS Senior VP Scott Morasch, along with CGA President and CEO Paul Burn,s suggested that PlayNow’s longer presence in the market has helped it retain a more loyal customer base. Play Alberta is still relatively new, which may explain BCLC’s better foothold in the market.
A persistent issue across both provinces is players struggling to identify unregulated platforms. The misunderstanding underscores a need for clearer public education on the difference between regulated and unregulated online gambling options.
Success in Ontario
The Alberta commercial gambling market will look to the success of Ontario. Prior to the launch of the regulated market there, more than 70% of online gambling occurred on unregulated sites in Ontario. According to current data, the percentage of gamblers using regulated sites has reached 83.7%. This data does not explore the number of operators who were previously unregulated and have now been licensed in the province.
As Alberta develops the province’s new iGaming structure, this data suggests that converting deeply entrenched customers will require regulation, education, and a range of competitive, regulated options.
