Alberta First Nations demand talks on gambling revenue impact
A First Nations leader in Alberta has raised concerns that the province is not doing enough to protect indigenous communities from potential losses linked to the expansion of online gambling.
The province is preparing to launch a regulated online gambling market on 13 July 2026 under the iGaming Alberta Act, passed last year. The move is intended to bring oversight to a sector that officials say is already widely used through unregulated platforms.
According to the provincial government, as much as 65 per cent of online gambling activity in Alberta currently takes place on the black market. Authorities argue that regulation will help redirect this spending into the legal system while offering consumer protections.
Share marked for First Nations
Under the new framework, private operators will be allowed to enter the market. A portion of the revenue, set at two per cent of gross gaming income, has been earmarked for First Nations groups. Gross revenue refers to the total amount wagered, minus winnings paid out and certain deductions.
Service Alberta Minister Dale Nally has described the measure as part of an effort at economic reconciliation, suggesting that the revenue share could offset any financial impact on land-based casinos.
However, some Indigenous leaders remain unconvinced. Trevor Mercredi, Grand Chief of Treaty 8 First Nations, said it is difficult to see how the current arrangement would adequately compensate communities if casino revenues decline.
“To say that this is being looked at is something positive; it’s hard for us to see the positive in this right now,” Trevor stressed.
Role of First Nations
Many First Nations casinos in Alberta play a central role in funding local services, including education, healthcare, housing and support for older residents. A drop in revenue, even a modest one, could have wider consequences for these programmes.
Economists have also warned of knock-on effects. A report by Canada’s CBC News points out that even a small dip in casino revenue can have a ripple effect. It can mean fewer jobs and less spending in communities that depend on these venues.
Experts argue that the rise of regulated online gambling will not necessarily worsen the situation, saying that land-based venues are already competing with unlicensed operators. From this perspective, the new system could formalise existing activity rather than divert new revenue away from casinos.
Even so, concerns extend beyond financial figures. Observers note that consultation with First Nations has been limited, raising questions about how the revenue share will be distributed and whether communities will have meaningful input. They forewarn that without proper engagement, the approach risks being seen as top-down and unbalanced.
Mirroring the Ontario model?
The debate in Alberta echoes developments in Ontario, which introduced its own regulated online gambling market earlier. There, First Nations groups receive 1.7 per cent of gambling revenue, though disputes have arisen over consultation and the inclusion of online gambling in revenue-sharing arrangements.
And so, with the July launch approaching, First Nations leaders in Alberta are calling for further discussions with the provincial government. They argue that a more inclusive approach will be necessary to ensure that the benefits of regulation are shared more evenly and that communities most affected are not left at a disadvantage.
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