Alberta launches online gambling, regulatory waves in North America

The world of North American online gambling is facing further upheavals. On July 13, the Canadian province of Alberta officially opened its multi-licensed online gambling market, which includes both sports betting and online casinos. This makes Alberta the second Canadian province, after Ontario, to have an open market for online gambling. In parallel, there are important developments in the US: an IRS hearing on gambling loss deductions and a ban on sweepstakes casinos in Maine are coming into effect. The situation of prediction markets remains exciting, as they repeatedly trigger new legal disputes. I am closely monitoring the situation and have gathered all the details for you.

Numbers and facts

Alberta is allowing more than 50 potential operators. Some of the industry's biggest brands, including FanDuel, DraftKings, BetMGM, Caesars, and bet365, are expected to go live on the opening day. A phased rollout is anticipated, as not all registered operators will go live immediately. Meanwhile, the FIFA World Cup has led to a massive surge in trading volumes in the prediction market sector, reaching $50 billion in June. The US Internal Revenue Service (IRS) will hold a public hearing on July 17 concerning the new 90% cap on gambling losses. In Maine, on the other hand, the ban on sweepstakes casinos will take effect on July 15. Many platforms, such as Stake.us and McLuck, have already exited the state.

Background

The launch of Alberta's iGaming market is a milestone for the Canadian gambling industry. It is the first time since 2022 that a Canadian province, after Ontario, has introduced a regulated, open market. This could trigger a domino effect, prompting other provinces to also regulate. Experts from Gaming News Canada predict that Alberta's success will force other Canadian provinces like British Columbia, Manitoba, and Saskatchewan to act, followed by Quebec. Current estimates suggest that nearly half of British Columbia's citizens gamble on unregulated platforms. In Quebec, more than $300 million in tax revenue is lost annually due to gambling on some 2,000 unregulated sites.

Another important aspect is the so-called prediction markets, which are increasingly under pressure in the US. There are a number of ongoing legal disputes. For example, Kalshi, an operator of such markets, was denied a preliminary injunction against state officials in New York. In North Carolina, prediction market operators face a new 6% tax on their revenues. This development could lead to further lawsuits from the Commodity Futures Trading Commission or the operators themselves. Courts in Nevada, Massachusetts, Michigan, and Washington have already granted states' requests to remand prediction market cases back to state court. Gambling Insider's Global Wire Editor, Chavdar Vasilev, is closely following these developments. He emphasizes the importance of regulatory decisions and court rulings for the future of these markets in the US. The IRS hearing on gambling loss deductions could also have far-reaching consequences for players and operators in the US. This hearing is intended to provide more clarity on how the IRS plans to implement the controversial new 90% cap on gambling loss deductions.

"What particularly interests me are the comments from tax professionals and other stakeholders participating in the IRS hearing, and whether there are any indications of how the IRS intends to interpret and implement the 90% cap on gambling losses." - Chavdar Vasilev, Global Wire Editor at Gambling Insider

Why it matters for German players

For German players, these developments in North America have no direct impact on domestic regulation. The German Interstate Treaty on Gambling 2021 (GlüStV 2021) has created a clear framework for online gambling in Germany. Only providers with a German license from the Joint Gambling Authority of the Federal States (GGL) are permitted in Germany. Players can find these licensed websites on the so-called GGL whitelist. In contrast to the prediction markets discussed in North America, which are not explicitly regulated in Germany, and the sweepstakes casinos banned in Maine, which play no role here, the offering of slots and online poker is strictly monitored. This includes the deposit limit of 1,000 euros per month and the stake limit of 1 euro per spin on online slot machines. Furthermore, the central self-exclusion system LUGAS ensures player protection. Therefore, anyone who wants to play legally and safely in Germany should definitely pay attention to German licensing. All other offers, including those licensed abroad by the MGA or in Curacao, are not permitted in Germany and do not offer comparable player protection.

What it means for GGL-licensed casinos

For online casinos licensed in Germany, these international developments mean neither a relaxation nor a tightening of existing regulations. The GGL consistently monitors compliance with the GlüStV 2021. The discussions in Canada and the US show that regulatory authorities worldwide are striving to channel online gambling and improve player protection. However, experiences from other markets could long-term influence the further development of German gambling law. The focus for GGL casinos remains on responsible gambling, the prevention of gambling addiction, and transparent compliance with all requirements. The fact that large international players are allowed to go live in Alberta at once shows that there are other regulatory approaches, but these currently play no role for the German market.