Alberta Vowed to Kill Black Market Gambling Ads. They're Still Everywhere

^{Alberta MLA Dale Nally says social media ads for black-market online gambling operators will not be tolerated once the transition period ends. (Photo: courtesy of Alberta.ca)}

An AI-generated ad that circulated on Alberta social media this summer showed police arresting the father of Canadian soccer star Alphonso Davies. The ad was a fabrication built to promote an offshore casino, supposedly after Davies Sr. won $3 million there.

The casino, called Oxibet, is registered in Anjouan — a constituent part of the Comoros Islands that has become infamous for its willingness to hand out online gambling licences.

More than two months after Alberta's new licensing regime was supposed to shut out such operators, ads like it remain rampant on the province's social media.

"These are predatory, illegal gambling sites that are trying to take advantage of Albertans. They play by no rules, offer no protections and should be avoided at all costs," Minister of Service Alberta and Red Tape Reduction Dale Nally, who oversees gambling policy, told Casinos.com.

From mid-July, new regulations require online casino and sports betting operators in Alberta to hold a provincial license. In theory, that means only companies registered with the Alberta Gaming, Liquor & Cannabis (AGLC) should be advertising to the province's residents. In practice, the reality is a little different, locals say.

Nally said that operators technically have until Oct. 13 to exit Alberta completely, as part of a transition period agreed following the launch of its fully regulated market.

"Once that date passes, our regulators will consider a variety of factors on a case by case basis when determining what action to take against illegal gambling websites operating in the province," Nally said.

Representatives for Davies, who was raised in Edmonton and plays for Bayern Munich and the Canadian national team, accused the casino of spreading lies about his father.

A Pattern Seen Elsewhere

Recent history suggests that Nally and the regulators he oversees in Alberta may find it extremely challenging to push black market ads out of their province.

Nations in Europe have, in several cases, hosted fully regulated igaming markets for well over a decade, but say they are struggling more than ever to contain illegal advertising.

In January of this year, a senior executive from the UK's Gambling Commission publicly called on Meta to do more to protect regulated markets, pointing to ads for black market operators that routinely appear on Instagram and Facebook.

"If we can find them, then so can Meta: they simply choose not to look," said Tim Miller, the then-executive director of the Gambling Commission.

In July, Dutch trade group VNLOK said it was filing a complaint against Meta with the European Commission, alleging that the tech giant is failing to meet its "legal obligation" to protect consumers from predatory black market sites.

There's little reason to believe that Alberta will somehow be exempt from these challenges, not least because across the country in Ontario, similar ads persist despite the province having regulated its online gaming space in 2022.

Asked by Casinos.com how it will approach enforcement against advertising for illegal online platforms, the regulator admitted that it may struggle to take action against the gambling companies themselves.

"AGLC's regulatory authority applies to operators registered in Alberta," an AGLC spokesperson told Casinos.com. "For an entity operating outside of Alberta's legal iGaming framework, AGLC reviews the circumstances on a case-by-case basis and may refer matters to the appropriate police service or other enforcement body for follow up."

Testing the Loophole

Websites targeting Canada without a licence are still accessible from Alberta.

This includes operator Magic365, which has been cited as a frequent Alberta social media advertiser in recent weeks.

I was able to confirm firsthand that the operator allows for sign-ups from an Alberta IP address with an Alberta address and accepts deposits in various cryptocurrencies or using the popular Interac service.

Magic365 is licensed in Curacao, a Caribbean island currently attempting to shed its former reputation as a hotbed of the black market.

The Curacao Gaming Authority did not respond to questions for this article from Casinos.com about whether or not it will prevent its licensees from offering their services in Alberta.

For now, AGLC officials are simply advising Albertan gamblers to proceed with care.

"We encourage Albertans to be cautious when viewing online gambling advertisements," the AGLC spokesperson said, "and to verify that any gambling site they use is registered to operate in Alberta."

Minister Nally added that Albertan gamblers should visit the AIGC website for guidance on approved operators. "That way, Albertans can have confidence in knowing that the sites they are using are accountable, responsible and will actually pay you out," he said.