Alberta's future strategies for online betting may be very black and white, with little space for the tones of "grey" that some operators are presently utilizing to take bets in the Western Canadian province.

- Alberta launched draft rules for its upcoming iGaming market that need operators to stop all unregulated sports wagering activity.

- The standards set rigorous requirements for operators, consisting of gamer age and place checks, self-exclusion tools, and anti-money laundering procedures.

- Unlike Ontario, Alberta plans to clearly ban grey market activity from the beginning to quickly move wagering onto provincially managed platforms.

The Alberta Gaming, Liquor and Cannabis Commission (AGLC) issued an iGaming "publication" on Jan. 13 that revealed the regulator published "standards and requirements" that will apply to operators planning to take part in the province's competitive market for online gaming.

That market has yet to launch, but the publication of the rules and the current start of the registration period for operators show the province is dealing with it.

Registration will be among the 2 key steps for would-be iGaming operators in Alberta, which prepares to allow numerous private-sector operators to provide online sports betting and Alberta online casinos. The other is signing an agreement with a brand-new entity, the Alberta iGaming Corporation, more detailing an operator's obligations.

Included in the very first draft of rules are requirements for players to be 18 years or older, physically located in Alberta, and able to self-exclude themselves from all websites in the province. There is much, a lot more also, including anti-money laundering and suspicious wagering-related standards.

As reported by @GamingNewsCA today, registration is now open for sports betting and iCasino operators wanting to launch in Alberta's new iGaming market. In brief, registration is one of two crucial steps that operators need to take before they can introduce in AB's iGaming plan. pic.twitter.com/I5WealzkmR

The first batch of guidelines likewise recommends there will be limited perseverance afforded to "grey market" operators, which is where Albertans have been doing the bulk of their online gaming.

"Registered Operators and registered Goods or Services Suppliers need to cease all unregulated video gaming activities in Alberta's iGaming market if, to perform those activities in Alberta's regulated online lotto plan, those activities would otherwise require registration under the iGaming Alberta Act or Gaming, Liquor and Cannabis Act," the standards state.

The same batch of rules states that "authorized Operators and registered Goods or Services Suppliers must not participate in any agreements or arrangements with any unregistered individual who is providing any goods or services that would otherwise require registration in Alberta."

Simply put, the requirements for the new Alberta sports betting market recommend operators may need to make a swifter transition into the controlled market than they performed in Ontario, which is the example Alberta is following.

That could also imply Albertans utilizing those websites could see futures wagers voided or other action taken by their usual sportsbook operator as they work to comply with the province's iGaming standards.

No lollygagging

Alberta's de facto iGaming minister, Dale Nally, had already stated a much shorter shift duration could be possible. However, talking to Covers a week after the release of the standards, Nally also said his province isn't about to "hinder" the grey market.

Nally, the Minister for Service Alberta and Red Tape Reduction, stated there will be a "runway" for grey- or black-market operators to transition into the controlled market. However, those operators will likewise need to reveal they are making a "genuine" effort to make the switch.

"We're going to welcome them, we're going to work with them, however we require to see that they are genuine about entering into our regulated area," Nally said. "A date will come when we've said we've offered you sufficient time to come on board, and if you haven't come on board by then, then we're going to start utilizing whatever tools at our disposal and obstructions for the black market."

There might be more than a couple of business to which Alberta's "uncontrolled" iGaming standard may apply. The bulk of online betting in Alberta is taking place on sites that are controlled offshore or outside the province, not by the province itself. That's one major reason the Alberta government is trying to reform how online gambling is done in the province, to carry that grey-market activity onto provincially managed websites.

So, the secret to the success of the new Alberta sports betting market will be transitioning grey operators into the provincially managed market. And an essential part of that shift will be the requirement for operators to cease any "uncontrolled" activity.

This is what Ontario performed in the fall of 2022. The province is the first and only in Canada so far to launch a competitive iGaming market that allows numerous private-sector operators to get involved. And, like in Alberta, the bulk of online betting in Ontario before the launch of its competitive iGaming market was with grey-market operators.

The large majority of online gaming in Ontario now happens with provincially controlled operators, consisting of several previously grey operators that transitioned into the province's brand-new, regulated market.

Let's prepare yourself to regulate

However, Ontario provided operators around 7 months before it updated its policies to consist of a tough deadline for them to desert their grey- market operations or have those activities held against them if they tried to join the regulated market.

This bugged some operators that had actually gone live in Ontario's regulated market immediately, as they were required to comply with the province's guidelines and revenue-sharing requirements while others postponed their involvement and continued to take bets from Ontarians.

So, again, Alberta's guidelines might imply a tighter window for operators to transition into the province's regulated market. Instead of modifying its requirements months later on to state no more uncontrolled activity, Alberta is poised to consist of the requirement at the start of its regulated market.

The uncontrolled activity-related paragraphs are simply 2 of lots of in the 85 pages of rules and requirements released by the AGLC. The company will be the regulator of the competitive iGaming market in addition to staying an operator of Play Alberta, the province's only authorized iGaming site.