Alberta’s plan to roll out a regulated online gambling market this July is drawing concern from some First Nations leaders who say the change could disrupt an important source of income for their communities.
The province passed the iGaming Alberta Act last year, clearing the way for private operators to enter a monitored online gambling space. The official launch is scheduled for July 13. While the government says the move will bring order to an already active online betting environment, critics argue the financial trade-offs have not been fully addressed.
At the center of the debate is a revenue-sharing plan that allocates two per cent of online gambling’s gross revenue to First Nations groups. Gross revenue refers to the amount wagered minus payouts and allowable deductions. Officials say the measure is intended to offset potential declines in earnings from land-based casinos.
Casino funding seen at risk
Many First Nations rely on casino proceeds to support local programs. These funds often go toward housing, education, health services, and community care initiatives. Leaders worry that shifting gamblers online could chip away at those revenues.
Grand Chief Trevor Mercredi of Treaty 8 First Nations questioned whether the province’s approach offers enough protection. “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.
Economic impacts could stretch beyond the casinos themselves. Laurel Wheeler, an economics professor at the University of Alberta, explained that even minor financial losses can ripple through communities that depend on gaming income.
“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 also cautioned, “Even a small kind of impact on the casino itself could have these knock-on effects.”
Province highlights unregulated market
Alberta’s government maintains that online gambling is already widespread through unauthorized platforms. According to Service Alberta Minister Dale Nally, roughly 65 per cent of the province’s online gaming activity occurs outside regulated systems.
“If they’re going to be cannibalized in the future, then they’re being cannibalized currently,” he said.
Nally suggested that bringing the industry under provincial oversight could redirect some of that activity into a regulated framework, potentially benefiting First Nations through the revenue-sharing model. He added that the government does not plan to increase the two per cent allocation, even if communities raise concerns about its adequacy.
“The black market … is alive and well, and so, for that reason, we’re not committing to replace future dollars,” he said.
The funds will be distributed through a program managed by the Ministry of Indigenous Relations. While the exact structure is still under development, the province says First Nations will have input on how the money is used.
“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,” Nally said.
Leaders question the consultation process
Despite those assurances, Mercredi said engagement with First Nations has been limited so far. He raised concerns about transparency and decision-making.
“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 also called for more direct dialogue. “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.”
Government representatives say consultations did take place during the summer of 2024 and included First Nations partners as well as operators of existing casinos on reserve land. Alberta currently has six such casinos, run by communities including the Stoney Nakoda, Alexis Nakota Sioux, and Tsuut’ina First Nations.
Ontario example adds to concerns
Developments in Ontario are shaping the conversation in Alberta. That province introduced regulated online gambling earlier and allocates 1.7 per cent of gambling revenue to First Nations. Online gaming was only added to that arrangement in the second year of operations.
The Mississaugas of Scugog Island First Nation has taken legal action against Ontario, arguing that the rollout happened without proper consultation and affected its casino income.
Chief Kelly LaRocca said the impact has already been felt. “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 pointed to declining casino revenue in her community and urged Alberta First Nations to monitor the situation. “Alberta First Nations should follow this dispute closely,” she said.
Uncertainty ahead of launch
With the launch date approaching, questions remain about how Alberta’s plan will affect First Nations economies in the long term. Community leaders continue to call for a greater role in shaping the policies that will influence their revenues.
“The province needs to take this seriously,” Mercredi said. “This has the potential to impact our nations.”
He added that meaningful collaboration is needed before the system is fully in place. “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
