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When the province of Alberta launched its regulated online casino and sports betting markets in mid-July, the revenue breakdown was quite clear.
The province would take 20% of all gaming revenue from legal operators after two issues get their cuts. Two percent of gross revenue goes toward indigenous relations and 1% goes to help Albertans struggling with gambling addiction.
But Dale Nally, the government minister in charge of overseeing the gaming market in Alberta, said the province isn’t married to 1%. It could change, if needed, with operators footing the additional funds.
“We believe that the 1% is going to be enough so that the operators will be paying for all the intensive outpatient-based treatment that’s required,” Nally said Thursday. “But I’ve had conversations with the operators, I’m talking about the responsible operators, and they’re committed to this. They know for most Albertans, gambling is just a fun activity you can do. You can from time to time put an occasional sports bet down.
“But for those who struggle with problematic gambling behaviors, this ruins lives. And so there there’s no light between them and us when it comes to providing treatment for anybody who is struggling, and if we have to raise the 1% we’re prepared to do that.”
Alberta population growing quickly
Nally said that land-based casinos have been growing their revenues by 2% a year, and that he expects the online platforms’ revenues will grow in a similar pattern. But Alberta has one of the fastest growing populations of any jurisdiction in the world, thanks to an oil industry currently in a boom cycle and some of the lowest housing costs in Canada. Alberta’s population is growing at a rate three times higher than the Canadian average.
The latest count pegs the province’s population near 5.1 million.
More people means more prospective gamblers. So while that means more money in, it also means that there could be greater need for addiction support for both online casino and sports betting.
“We think that [1%] will be enough to pay for the treatment that’s required,” said Nally. “But we’ll monitor it. Because, at the end of the day, we made a commitment that we will have Albertans’ backs, and anybody that struggles with gambling behaviors will have access to treatment.”
Funds for online casino, sports betting support available
Nally announcemened Thursday that the province would be providing C$2.4 million for gambling addiction treatment. That money is considered an advance against the revenues the province will be receiving from land-based casinos and the iGaming industry in the months to come.
“We didn’t want to make Albertans wait while we collected that 1%,” said Nally. ”So that’s why we’re standing up the $2.4 million grant now.”
