Will an influx of online gambling operators in Alberta spell disaster for local charities?

There are concerns that an influx of private gambling operators in Alberta could divert cash from local charities and leave traditional casinos struggling to compete in a new landscape dominated by iGaming websites, according to groups that represent casino operators and non-profit groups.

Alberta is looking to expand online gambling in the province, moving closer to a model used in Ontario, where dozens of private companies provide everything from casino and table games to sports betting across more than 70 websites.

Alberta currently has one legal and regulated online gambling site called Play Alberta, managed by Alberta Gaming, Liquor and Cannabis (AGLC), although players here can still place bets with offshore gambling sites such as Bet365 and Bodog. 

The provincial government passed Bill 16 in May, allowing for the regulation and oversight of iGaming here, which could drastically change Alberta's unique charitable gaming model where charitable organizations are licensed to conduct and manage casino events, as well as fundraising through bingo and selling raffle tickets.

That's now all at risk, according to Michael Thompson, executive director of the Alberta Charitable Casino Operators.

"The revenues that go to charities are completely dependent on revenues going to private sector casino providers," said Thompson, adding that in 2022-23 casinos generated $255 million for charities in Alberta.

He says the Alberta and Ontario markets are fundamentally different and that a copy and paste approach just won't work.

"We think the Ontario model will be very damaging to casinos in Alberta and charities will lose out significantly as a result. We think that's going to be a disaster and they need to take the time to get it right."

In Ontario, the province takes 20 per cent of revenues from regulated gambling sites, that translated into approximately $790 million last year, including taxes.

Thompson says casino operators in Alberta pay the highest rate of tax in Canada, which makes it impossible to compete with regulated iGaming companies.

"We've been asking the government to make modest adjustments to the tax structure of the land-based casinos so they can use additional monies to invest in their facilities and be more competitive," said Thompson.

"The tax structure has to be dealt with first. We think the government is selling the farm," he said.

Thompson says Alberta's land-based casinos are taxed at 83 per cent, compared to the 20 per cent iGaming companies are charged in Ontario.

He says, as far as he knows there are no plans to require iGaming companies to make charitable distributions.

Charities and the groups that represent them are waiting to take part in consultations with the province on the plans.

Karen Ball with the Calgary Chamber of Voluntary Organizations (CCVO) says her organization, which advocates for the non-profit and voluntary sector, has yet to meet with the province to discuss policy.

"We understand this is an area that the government has been considering. Organizations which rely on the charitable gaming model are always concerned about the sustainability of the model," she said.

Ball says many are small, community-focused charities that rely on casino funding to access sustainable supports. 

"Anything that might potentially impact the ability of brick-and-mortar casinos to earn revenue will have an effect on the ability of charities and their participation in that system," she said.

"We look forward to the opportunity to participate in their consultation."

Service Alberta and Red Tape Reduction Minister Dale Nally told CBC News that monies collected under the new model will be folded into general revenues, similar to the current system, and that the province hasn't worked out what the revenue splits with operators will be.

"We have probably one of the strongest charitable gaming markets in the province with our land-based casinos. Does that need to be adopted in the online world? We're having those conversations," he said.

Nally says there's no date set for when Alberta might open up its market, but that it's just a matter of time.