First Nations Voice Concern over Alberta Betting Plan

Alberta is preparing to introduce a regulated online gambling system this summer, but some First Nations leaders say the shift could threaten a key source of income for their communities.

The province approved the iGaming Alberta Act last year, opening the door for private companies to operate within a controlled online betting market. Officials have set July 13 as the start date. While the government says the move will bring oversight to an already active digital gambling space, critics argue the economic impact on First Nations has not been fully considered.

At the heart of the issue is a plan to share two per cent of online gambling’s gross revenue with First Nations. Gross revenue refers to total wagers minus payouts and approved deductions. Provincial representatives say the funding is meant to offset any drop in earnings from physical casinos.

Concerns grow over casino income

Many First Nations depend on casino profits to fund community services, including housing, education, and health programs. Leaders worry that as more players move online, those revenues could shrink.

Grand Chief Trevor Mercredi of Treaty 8 First Nations questioned whether the province’s approach provides 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 effects could extend beyond casino operations themselves. Laurel Wheeler, an economics professor at the University of Alberta, said even modest declines in gaming income may have broader consequences for communities.

“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 that smaller financial changes can still create wider impacts. “Even a small kind of impact on the casino itself could have these knock-on effects.”

Province points to existing online activity

Government officials argue that online gambling is already widespread in Alberta, much of it happening through unregulated platforms. Service Alberta Minister Dale Nally said about 65 per cent of online betting in the province currently takes place outside regulated systems.

“If they're going to be cannibalized in the future, then they're being cannibalized currently,” he said.

Nally suggested that a regulated framework could bring some of that activity into the provincial system, which would then contribute to the revenue-sharing arrangement. He also made it clear that the two per cent allocation is not expected to increase, even if concerns continue.

“The black market … is alive and well, and so, for that reason, we're not committing to replace future dollars,” he said.

The province plans to distribute funds through a program overseen by the Ministry of Indigenous Relations. Officials say First Nations will have a say in 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.

Questions about consultation and next steps

Despite those assurances, some leaders say the consultation process has not been sufficient. Mercredi raised concerns about a lack of transparency and limited engagement.

“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 discussions with provincial officials. “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.”

The government maintains that consultations took place in the summer of 2024 and included First Nations representatives as well as operators of existing casinos located on reserve lands. Alberta currently has six such casinos run by communities, including the Stoney Nakoda, Alexis Nakota Sioux, and Tsuut’ina First Nations.

Developments in Ontario are also shaping the conversation. That province launched its own regulated online gambling market earlier and directs 1.7 per cent of revenue to First Nations. Online gaming was added to that agreement after the first year.

The Mississaugas of Scugog Island First Nation has since taken legal action, arguing that the rollout moved ahead without proper consultation and affected its casino earnings.

Chief Kelly LaRocca said the financial impact is already noticeable. “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 also pointed to declining revenues in her community and encouraged Alberta First Nations to keep a close watch on how the situation develops. “Alberta First Nations should follow this dispute closely,” she said.

With the launch date approaching, uncertainty remains about how Alberta’s plan will play out over time. First Nations leaders continue to push for a stronger role in shaping policies that could influence their economies.

“The province needs to take this seriously,” Mercredi said. “This has the potential to impact our nations.”

He emphasized the need for meaningful collaboration before the system is fully operational. “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 Raise alarms over Alberta betting shift, casinonewsdaily.com, April 29, 2026.