Alberta is looking to follow Ontario’s lead in turning profits from illegal online gambling into a billion-dollar revenue stream.
Driving the news: Alberta will become the second province to let private online gambling sites, like FanDuel and DraftKings, legally operate in exchange for a cut of their revenues. Last year, Ontario raked in $2.4 billion in gaming revenue thanks to a similar model.
- Before Ontario opened up its gambling market, ~70% of the $1 billion Ontarians wagered was on the so-called grey market of unregulated sites. A year after making the move, 85% of Ontario bettors started making their picks on legal platforms.
- The province takes a healthy 20% cut of those betting sites’ revenues. The total payout has skyrocketed as wagers in Ontario hit $63 billion last year, up 78% from 2022.
Why it matters: Open betting markets have been a catalyst for financial hardship, especially among younger men and lower-income households. A recent study in the U.S. found regions with legalized sports betting also have lower credit scores, and more bankruptcies and debt.
Bottom line: Despite most provinces keeping the doors closed to private online betting sites, almost half of Canadians are already active online gamblers.—LA