Coolbet Exits Alberta: Market Regulation Leads to Withdrawal

Coolbet, a prominent online sports betting and casino operator, has announced its withdrawal from the Alberta market. This decision comes ahead of the province's anticipated launch of a regulated iGaming framework. Coolbet is among the first operators to step aside as the new licensing model looms.

The company has already taken steps. New customer registrations and deposits have been suspended. Alberta-based customers will be able to access Coolbet's sportsbook and casino platform until July 12. Withdrawals will be possible until August 31.

Numbers and facts

Beginning July 13, operators seeking a license in Alberta must cease all unregulated activities. Limited exemptions are available until October 13. Regulatory authorities are expected to enforce against grey-market operators who continue to operate without approval.

Alberta's regulated iGaming market is set to launch on July 13. The Alberta Gaming, Liquor and Cannabis Commission (AGLC) has already registered more than 30 operators. These licenses cover over 50 online casino and sportsbook brands, including giants like Bally's, bet365, BetMGM, BetRivers, Betway, Caesars, DraftKings, FanDuel, PointsBet, and theScore Bet.

Background

Coolbet has historically operated in Canada as a grey-market operator in provinces outside Ontario. In these regions, online gambling was historically limited to provincial lottery corporations. Coolbet joined Ontario's regulated market at its launch in April 2022. However, the company withdrew roughly a year later. Parent company GAN Ltd. cited intense competition and high customer acquisition costs as making the market commercially challenging.

Coolbet's departure is not an isolated incident. Many other brands, including Betiton, Casumo, Conquestador, Fitzdares, Rivalry, Unibet, and Wildz Group, have also exited Ontario, often citing similar profitability concerns. It appears the North American market is inherently more aggressively structured.

LeoVegas also recently made a similar announcement. The company confirmed it would not participate in Alberta's regulated market despite operating licensed brands in Ontario. Daniel de Morais, Communications Manager at LeoVegas, commented on this to Canadian Gaming Business:

“We continuously conduct strategic reviews of our business to ensure we stay competitive, that our strategy supports a clear long-term direction, and that we meet our sustainable growth ambitions.” - Daniel de Morais, Communications Manager at LeoVegas

Why it matters for German players

The developments in Canada partly reflect processes that we have already experienced in Germany. With the State Treaty on Gambling 2021 (GlüStV 2021) and the establishment of the Joint Gaming Authority of the Federal States (GGL), Germany has created its own regulated online gambling market. Here too, international providers initially faced difficulties adapting to the new rules.

For German players, this primarily means security. Those who play at a German-licensed casino benefit from strict regulations. These include betting limits of 1 Euro per spin and a monthly deposit limit of 1,000 Euros, which are centrally monitored via the LUGAS system. These measures are intended to ensure player protection and addiction prevention. The market is transparent through the GGL whitelist. Providers not listed there operate illegally. The GGL actively combats such providers to strengthen the regulated market and protect players. The situation in Alberta, where the grey market is being combated, has parallels to Germany. Players should always ensure they only play with GGL-licensed providers.

What it means for GGL-licensed casinos

Adapting to new regulatory frameworks is a global challenge for online gambling providers. The experiences in Canada show that the transition from an unregulated or grey market to a fully regulated market is not profitable for all operators. High licensing fees, strict player protection requirements, and significant investments in compliance can force smaller or less financially strong providers to withdraw. This leads to a market consolidation, where often only the largest and most adaptable players remain.

In Germany, the GGL has initiated a similar development. Providers on the GGL whitelist have submitted to the strict regulations of the GlüStV 2021. They must technically implement the LUGAS self-exclusion files and deposit limits and adhere to advertising restrictions. For established, reputable companies, this is an investment in the future and the credibility of the market. For players, it means a safer gaming environment and the certainty of playing with a state-approved provider.