Alberta is set to launch a regulated online gambling market on July 13, but some First Nations leaders warn the change could weaken a key source of funding tied to casino operations.
The new system follows passage of the iGaming Alberta Act and will oversee online betting platforms. The province plans to direct two per cent of gross revenue—defined as wagers minus winnings and deductions—to First Nations in an effort to offset potential losses at land-based casinos.
Concerns Over Casino Income And Community Funding
Casino revenue currently supports programs such as housing, education, health care, and services for seniors. Trevor Mercredi, grand chief of Treaty 8 First Nations, questioned whether the planned share is sufficient. “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 of the University of Alberta warned that even small declines could have broader consequences. “When you have a positive economic shock within a community, that can lead to higher wages initially and those higher wages can attract more people back to their home community, which can also be good for cultural preservation,” she said.
“All of the different markets are interconnected and they’re all affected.” She added, “Even a small kind of impact on the casino itself could have these knock-on effects.”
Government Stance And Consultation Concerns
Service Alberta Minister Dale Nally said the regulated market may not significantly reduce casino income because most online gambling already occurs through illegal channels. “If they’re going to be cannibalized in the future, then they’re being cannibalized currently,” he said.
Nally described the revenue-sharing plan as part of economic reconciliation but ruled out increasing the percentage. “The black market … is alive and well, and so, for that reason, we’re not committing to replace future dollars,” he said. He added that First Nations will help determine how funds are distributed: “We’re not going to tell them how the money needs to be used. We’re going to ask them how they would like it managed.”
Mercredi said consultation has been limited and raised concerns about fairness. “Two per cent is the number that they’re willing to share, but not share the rest of the details. It’s very concerning at this point in time because it has the potential to impact the nations,” he said.
He added, “There’s a lot of issues here, and we’d really like the province to come to the table and talk to the chiefs … so we can be a part of this process.”
Lessons From Ontario’s Rollout
A similar model in Ontario has already sparked disputes. Chief Kelly LaRocca said, “Ontario … failed to consult and sort out iGaming arrangements with First Nations, including MSIFN, before initiating iGaming and before First Nations were impacted,” adding that Alberta communities should monitor the situation.
As the launch of the regulated gambling market in Alberta approaches, Mercredi called for more engagement. “The province needs to take this seriously. This has the potential to impact our nations,” he said. “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, 2026
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