Alberta First Nations Question Revenue-Share Proposal Ahead of Private iGaming Market Launch

When Alberta launches its privatized online gambling market on July 13, it will make a major change to the province’s gaming landscape, and some First Nations leaders fear its impact on community revenue. First Nations communities in the province rely heavily on casino revenue to fund vital services like hospitals, schools, and housing on reserve land.

The** iGaming Alberta Act,** passed last year, creates a regulatory framework that allows private operators to offer online casino games and sports betting to Alberta residents for the first time. Previously, the only legal option was the government-operated **PlayAlberta. **The province argues the move will bring an estimated 65% of the province’s online gambling activity away from black market operators.

To mitigate the impact on First Nations, the province has offered a 2% share of gross market revenue. However, the community leaders bemoan a lack of transparency and an unwillingness to negotiate. Speaking to CBC News recently, Treaty 8 First Nations Grand Chief Trevor Mercredi said, “Two per cent is the number that they’re willing to share, but not share the rest of the details.”

A Financial Lifeline at Risk

Six First Nations communities in Alberta currently host casinos on reserve land:

• Stoney Nakoda First Nation

• Alexis Nakota Sioux Nation

• Tsuut’ina First Nation

• Cold Lake First Nation

• Enoch Cree Nation

• Louis Bull Tribe

An existing arrangement with the Alberta Gaming, Liquor and Cannabis Commission (AGLC) directs profits from these casinos back to the host communities.

The concern now is that if Albertans start gambling online through new licensed platforms, they may stop making trips to First Nations casinos, which could cause a significant drop in revenue that supports vital services.

Service Alberta and Red Tape Reduction Minister Dale Nally has tried to convince First Nations that the iGaming launch will benefit them. He says that a 2% revenue share should exceed any losses, arguing that a privatized market aims to rechannel a black market that is already cannibalizing retail casino revenue. He also said that First Nations can decide for themselves how to spend the money but made it clear that the government will not renegotiate the 2% figure.

Lessons from Ontario

Alberta is following in the footsteps of Ontario, which in April 2022 became the first Canadian province to launch a privately operated online gaming market. This provides both a roadmap and a cautionary tale in certain respects.

First Nations groups receive 1.7% of all gaming revenue under Ontario’s rules. However, this initially did not cover online gambling. Ontario only included iGaming in the arrangement during the 2024–2025 fiscal year, so First Nations communities absorbed the impact of the market shift for years without any compensation from the online sector.

The Mississaugas of Scugog Island First Nation (MSIFN) is now pursuing the province in court over the revenue shortfall in the first two years and what it describes as a failure to consult.

The Failed Kahnawà:ke Challenge

The issues in Ontario are not the first time an Indigenous community has mounted a legal challenge to provincial iGaming expansion. The Mohawk Council of Kahnawà:ke filed a constitutional challenge in November 2022 against iGaming Ontario and the Attorney General of Ontario, arguing that the province’s private operator model violates the Criminal Code.

The Kahnawà:ke Gaming Commission, established in 1996, stands as one of the oldest online gambling regulators in the world and has, for decades, licensed operators and generated significant revenue for the Mohawk community through its subsidiary, Mohawk Online Limited. The launch of the commercial iGaming market in Ontario affected its operations, and it refused to cede its own jurisdiction by paying fees to a competing provincial body.

The Mohawk Council argued that the Criminal Code requires provinces to “conduct and manage” gambling activities and claimed that Ontario only took a cut from operators without actually running anything.

The Ontario Superior Court ultimately disagreed, ruling that iGaming Ontario acts as the “operating mind” behind the market, which led to Kahnawà:ke Online stopping operations in Ontario. It has also indicated openness to allowing Ontario poker sites to join the international player pool.

Consultation Remains a Central Issue

In addition to revenue concerns, First Nations in Alberta also question the process that led to the final 2% figure. The Alberta government says it invited every First Nation in the province to participate in consultations in the summer of 2024. However, some tribal leaders argue that the consultation process was superficial. They say genuine consultation requires more than inviting feedback, that it requires Indigenous concerns to play a real role in decision-making.

The July 13 launch date remains fixed, and the 2% revenue share appears likely to stay in place for the foreseeable future.

Andrew O'Malley

Editor

Andrew O’Malley has been involved in the gambling industry for more than a decade. With a background in math and finance, he brings a unique perspective to gambling journalism. He covers everything from the latest prediction market litigation to sports betting scandals and iGaming legislation for publications like Gambling Insider and Gaming America. As a gambling journalist, Andrew closely follows breaking stories while also producing in-depth analysis pieces. He frequently speaks with experts in their respective fields to provide unique and informed perspectives.