Summary
- Most gamblers in Alberta and BC use offshore gambling websites.
- Most gamblers in Alberta and British Columbia prefer to gamble exclusively with offshore platforms.
- Over half of the participants are unaware that they are engaging in offshore activities.
Provinces are considering switching to license-based models to increase channelization. A recent study by Ipsos for the Canadian Gaming Association reveals that most online gamblers in Alberta and British Columbia are using offshore and unregulated gambling platforms exclusively.
Unregulated gambling dominates both Alberta and BC
The survey, conducted from February 24 to March 24, included interviews with 1,319 players in Alberta and 1,312 players in British Columbia, focusing on those involved in online casino gambling and sports betting. Ipsos interviewed participants who were 18 or older, had gambled in the past three months, and had used at least one real-money gambling website or sportsbook. The results were surprising, revealing that the channelization rate—the proportion of players using locally licensed and regulated gambling websites—in both provinces is alarmingly low. In Alberta, for example, only 10% of gamblers utilize the province's official platform, PlayAlberta, while 77.3% gamble solely on unregulated sites. This suggests that Alberta's decision to adopt a license-based model is justified, as local players are not engaging with the current regulated platform. A contributing factor is likely that many players are unaware of which platforms are regulated. In Alberta, 93% of gamblers recognized PlayAlberta as a regulated site, but only 55% of those registered on unregulated sites knew that these sites were prohibited in the province. In British Columbia, the awareness was 96% for the regulated platform and 51% for the unregulated ones, demonstrating familiarity with the licensed platform but a lack of awareness that no other licensed options were available.
Switching away from the monopoly to invite more operators in
The Ipsos study highlights noticeable trends in British Columbia, where 60.4% of participants reported using only unregulated gambling websites, despite 39.6% also betting on the province's PlayNow platform. Matej Novota, Head of Casino Research at Casino House Group, commented: A monopoly is unsustainable if unregulated alternatives are easily accessible. Without strong enforcement—an often impractical approach—offshore websites thrive, even when provincial platforms are available. A government monopoly succeeds only if its platform continually outshines offshore competitors. In Alberta and British Columbia, this competitive edge is absent. If offshore sites provide a better experience and the government isn't actively confronting them, players will simply prefer offshore casinos and sportsbooks. Additionally, half of the people using unregulated websites were unaware of doing so, indicating that the provinces have not effectively raised awareness about this issue, a common problem in regions that monopolize their gambling sectors. This realization is why British Columbia is likely to shift to a non-monopoly-based market soon, inviting more operators, as Ontario has done. However, Ontario still faces challenges, with a channelization rate of about 84%. A significant 20.2% of players are still engaging with the unregulated market via offshore platforms, as revealed by a survey from the Alcohol and Gaming Commission of Ontario.
