Blueprint for Expansion: How Alberta Will Build on Ontario’s $9.5 Billion Handle in May

Ontario shattered its iCasino monthly revenue record in May, posting its second-best total casino revenue to date. However, the real success story lies in player adoption: 91% of players are now choosing to play on licensed, regulated, and taxed sites. This is up from 83% last year and represents a massive leap from the estimated 30% prior to 2022, when Ontario overhauled its marketplace to allow for competition. The province now boasts more than 79 websites and 45 separate operators.

Total handle - or all wagers placed in the province - reached an impressive $9.5 billion CAD in May. This ranks as the fourth-highest month since the overhaul, just shy of the $9.6 billion record set in March of this year. Gross Gaming Revenue (GGR) topped $413 million CAD.

The $9.5 billion handle breaks down as follows:

• Online casino games (tables and slots): $8.4 billion

• Sports betting: $972 million

• Online poker: $134 million

Prioritizing Player Safety with BetGuard

In May, online casinos in Ontario rolled out a new feature called BetGuard. Designed as a one-stop shop for players looking to take a break from online gambling, the tool allows users to self-exclude from all 79 provincial websites via a single, dedicated webpage. Players can set custom time limits that prevent them from placing wagers and block them from receiving marketing materials from any operator in the province.

While total monthly users trended down by about 1% in May (it is not yet clear if this was a direct result of BetGuard), the closely watched Average Revenue Per Player Account (ARPA) grew by nearly 3%, reaching $329 CAD per month.

Alberta Adopts and Adapts Ontario’s Model

Ontario’s success caught the eye of the Legislative Assembly in Alberta last year. Alberta was facing the same issues that had plagued Ontario before its overhaul: its monopolistic, government-run website, PlayAlberta, was unpopular with players. Estimates suggested that between 70% and 90% of all online gaming in Alberta was taking place on unlicensed, offshore websites, resulting in hundreds of millions of dollars leaving the province every year.

In May of last year, Alberta legislators passed a new online gaming bill that broadly mirrored Ontario’s open-market approach, keeping tax and licensing fees relatively low to attract operators.

However, having closely watched four years of Ontario’s growth, Alberta instituted several key changes to better protect its residents:

• Stricter advertising rules: Broad restrictions on bonus advertisements.

• Immediate player protection: Day-one availability for cross-site self-exclusion.

• Banned wager types: While Ontario allows gambling on "novelty events" (like political elections), Alberta has expressly forbidden these types of wagers.

A New Approach to Revenue Allocation

Alberta has also prioritized using its gambling revenue to support First Nations communities and responsible gaming initiatives. The revenue distribution model is structured as follows:

• 2% of GGR is allocated to fund tribal priorities.

• 1% of GGR is allocated to social programs that mitigate the impact of problem gaming.

• 20% Tax Rate is applied by the province to the remaining GGR after those priority payouts are made.

Alberta’s Launch and the Road Ahead

After almost a year of tweaking laws and vetting new operators, Alberta is ready to roll out its new and improved iGaming experience on July 13th. The province currently has nearly 50 websites managed by 28 licensed operators - including a diverse lineup of newly regulated Alberta online casinos and sportsbooks - ready to launch, with more expected to follow over the next year as operators measure market demand. 

Financial projections for the new market are optimistic:

• First-Year GGR: Estimated between $450 to $500 million CAD.

• First-Year Tax Revenue: Projected at slightly more than $100 million CAD.

• Long-Term GGR (by 2030): Projected to reach close to $1.9 billion CAD.

One thing is certain: between Ontario’s maturing market and the launch of Alberta's highly competitive new ecosystem, the Canadian iGaming industry is poised to continue posting new records for months to come.