With limited expansion opportunities in the US, sportsbooks are turning their attention to the Alberta sports betting market for growth.
During the most recent earnings season, multiple sportsbook operators expressed excitement for the upcoming launch of Alberta sports betting. While there is no firm launch date yet, Alberta officials have confirmed it will be the second open commercial Canada sports betting and online casino market.
Ontario sports betting was the first commercial Canadian market to launch in April 2022. Provincial lotteries began accepting single-event sports wagers in August 2021.
Alberta sports betting in crosshairs
At the Canadian Gaming Summit in June, Dale Nally, minister of Service Alberta and Red Tape Reduction, confirmed the province is working on the framework for its regulated market. It will include online sports betting and online casino, modeled largely after Ontario.
During Q2 earnings season, several operators took time to detail the opportunity. Those operators included:
- NorthStar Gaming
- Penn Entertainment
- Rush Street Interactive
- Super Group
Entain executives also briefly mentioned the province during their report. PointsBet Canada CEO Scott Vanderwel was bullish on the market at the CGS.
Penn sees strong potential for theScore
Penn purchased theScore for $2 billion in 2021, then pulled the sportsbook out of the US market. The thought was to focus the brand on its home market of Canada, while first Barstool Sportsbook and now ESPN Bet could lead in the US.
During the Q2 2024 fiscal report earlier this month, CEO Jay Snowden appeared happy with theScore’s performance in Ontario. He believes Alberta could be a top North American market for Penn.
“We anticipate that the success we’ve seen in Ontario with theScore Bet, we would be able to replicate that in Alberta. theScore is a very popular brand throughout Canada,” Snowden said. “It’s not just a Toronto or Ontario thing. So given the success we’ve had in Ontario, and given that Alberta will have very similar tax rates as we understand it, and be both OSB and iCasino, we think it’s going to be a really important North American market for us, probably a top three or four market for us.”
Operators note Alberta demographics
Rush Street Interactive CEO Richard Schwartz said it will monitor the province and its opportunities for the BetRivers brand. Schwartz said Alberta has the highest per-capita spending on gaming in Canada and “has great attributes.”
Northstar Gaming CEO Michael Moskowitz said it will continue to build out a database outside the regulated Ontario market through sports content. He also anticipates a strong performance in Alberta.
Moskowitz said it is the youngest adult population in Canada, while also having the highest per-capita GDP.
Super Group stays in Canada sports betting
While Super Group recently decided to pull its Betway brand out of US sports betting, it will maintain its Canadian presence.
During its most recent earnings call, CEO Neal Menashe said they are “super ready” for Alberta.
“Everything we did in Ontario, we’ve learned, we’ve learned how to do it even better,” Menashe said. “So the teams are ready and waiting when Alberta regulates. And across the board in all these markets, we are optimizing everywhere.”
Ontario sports betting market
At the CGS, industry stakeholders celebrated Ontario’s second full year of sports betting and online casino. Despite a larger population, the province finished its first year generating less in sports betting and online casino revenue than US states with both regulated options, including Michigan, New Jersey and Pennsylvania.
Handle grew by 78% in its second year, up to CAD $63 billion (USD $46.2 billion) from CAD $35.6 billion (USD $26.5 billion). That generated CAD $2.4 billion (USD $1.8 billion) in operator revenue, a 72% increase over CAD $1.4 billion (USD $1 billion) in its first year.
Those figures are the commercial operator numbers from iGaming Ontario. It does not include information from Ontario Lottery and Gaming Corp.‘s Proline+.
Operators happy with Ontario
While the monetary haul might leave some to be desired, industry executives seem pleased with the regulatory framework in the province.
Martin Lycka, Entain‘s SVP of American regulatory affairs and responsible gambling, said Ontario is “the platinum standard of iGaming regulation.”
Meanwhile, Troy Ross, president at TPM Public Affairs, said during one CGS panel that the Ontario model “works infinitely better than we thought.”
