Alberta is preparing to open its regulated online gambling market this summer, but some First Nations leaders say the move could come at a cost to their communities.
The province plans to launch legal online gambling on July 13 under the iGaming Alberta Act, a law passed last year to bring oversight to digital betting platforms. Officials say the change will help capture money currently flowing through unregulated sites. Still, questions remain about how the shift will affect existing casino revenues, particularly those tied to First Nations communities.
Under the plan, two per cent of gross online gambling revenue will be set aside for First Nations groups. Service Alberta Minister Dale Nally described the measure as part of economic reconciliation. Gross revenue, as defined by the province, reflects total bets placed minus winnings paid out and eligible deductions.
Concerns about shrinking casino income
For many First Nations, casino earnings support community programs and services. Funds often go toward education, housing, health care, and support for seniors. Any drop in that income could have ripple effects.
Trevor Mercredi, grand chief of Treaty 8 First Nations, said the current proposal doesn’t provide much reassurance. “To say that this is being looked at is something positive; it’s hard for us to see the positive in this right now,” he said.
Economist Laurel Wheeler from the University of Alberta noted that even a small decline in casino revenue can create wider economic impacts. She explained that local economies connected to casinos often rely on that activity to sustain jobs and wages.
Government points to existing online market
Nally argued that online gambling already exists in Alberta through unregulated channels. He said about 65 per cent of online gaming activity currently takes place in the black market.
“If they’re going to be cannibalized in the future, then they’re being cannibalized currently,” he said.
He also expressed confidence that the revenue-sharing model would outweigh potential losses. Despite that, he made it clear the province does not plan to increase the two per cent share if First Nations groups find it insufficient.
“The black market… is alive and well, and so, for that reason, we’re not committing to replace future dollars,” he said.
The province intends to distribute the funds through a program managed by the Ministry of Indigenous Relations. Officials say they will work with First Nations to decide how the money is allocated, rather than setting strict rules.
Mercredi said discussions with First Nations leaders have been limited so far. He raised concerns about how decisions will be made without broader input.
The government has stated it invited all First Nations in Alberta to participate in consultations during the development of the legislation. It also gathered feedback from existing land-based casino operators.
Lessons from Ontario’s experience
Alberta’s approach follows a similar path taken by Ontario, which introduced regulated online gambling earlier. In Ontario, First Nations receive 1.7 per cent of gambling revenue. Online gambling was not initially included in that share, but it was added during the 2024-25 fiscal year.
The rollout there has not been without conflict. The Mississaugas of Scugog Island First Nation has launched a legal challenge against the province, citing concerns about consultation and revenue sharing.
Chief Kelly LaRocca said her community has already felt the effects. “Ontario … failed to consult and sort out iGaming arrangements with First Nations, including MSIFN, before initiating iGaming and before First Nations were impacted,” she said.
She also noted that her First Nation’s casino has experienced declining revenue since online gambling became legal, urging Alberta leaders to pay attention to the situation.
“Alberta First Nations should follow this dispute closely,” she said.
What comes next
With the July launch date approaching, uncertainty remains about how Alberta’s plan will play out for First Nations communities. Leaders like Mercredi continue to push for more involvement in shaping the system before it takes full effect.
“The province needs to take this seriously,” he said. “This has the potential to impact our nations.”
“They really need to sit with the chiefs and come up with a plan that benefits all of Albertans, not just the government.”
Source:
First Nations chief worries legalized online gambling will hurt critical band revenues, cbc.ca, April 27, 2027
