A new investigation unit run by Alberta Gaming, Liquor and Cannabis (AGLC) says they intercepted a large quantity of cannabis headed to an address in Calgary on April 30.

With the assistance of other AGLC investigative units and the Calgary Police Service, over 162 kilograms of cannabis were seized. AGLC says information provided as part of the investigation indicated the cannabis was meant for online sales. 

Two BC residents were arrested at the Calgary home in the neighbourhood of Dover and were later released at the conclusion of a search warrant. Charges related to the Cannabis Act and the Criminal Code are pending. Law enforcement values the cannabis at $1.5 million, or about $10 a gram.

“This initial seizure underscores AGLC’s firm commitment to addressing the illegal online cannabis market. We are committed to a coordinated illegal cannabis enforcement program in Alberta to uphold the integrity of the legal cannabis framework in the province,” said Dave Berry, Chief Regulatory Officer, AGLC, in a press release.

In 2024, the Alberta government granted AGLC the authority to investigate illegal cannabis operations, noting that illegal cannabis funds organized crime, reduces government revenue, and unfairly disadvantages law-abiding Alberta retailers. The agency says there continue to be illegal online sellers operating websites in the province, often connected to organized crime groups.

“Illegal cannabis sales threaten public safety, fuel organized crime, and undermine law-abiding businesses across Alberta,” added Dale Nally, Minister of Service Alberta and Red Tape Reduction. That’s why in 2024, the government granted AGLC the authority to investigate these operations, and we are incredibly pleased with the work of their investigative unit. Their efforts are making a real difference in holding illegal sellers accountable and protecting Albertans.”

AGLC reminds the public that provincially licensed cannabis retailers are the only source of legal online cannabis sales in the province. The province currently lists 710 licensed cannabis stores. More than 300 of them are listed as offering online sales. The AGLC moved online sales from its own platform to private retailers in 2022.

In 2023-24, the Alberta government collected $210 million in cannabis tax revenue from $673 million in sales, reporting $10.8 million in net income after expenses.

Despite more than six years of legal, regulated cannabis in Canada, illicit online retailers continue to prosper, seemingly with minimal interference from federal authorities. 

These unlicensed sellers operate without regulation, with limited retail expenses, and almost no tax obligations compared to the rigorous requirements expected of licensed stores.

In early 2025, the RCMP arrested a BC resident they say was laundering millions of dollars through illicit online sales of cannabis in Alberta and British Columbia. 

Unregulated online cannabis stores were common in Canada prior to legalization, and continue to be some six years into the legal market. In documents released under the Access to Information Act, reports from Health Canada’s compliance department to the RCMP show requests to address illicit online sales in BC were often referred to the BC Community Safety Unit (CSU), which handles illicit cannabis sales in BC.

In 2022, BC introduced new legislation aimed at targeting illicit online cannabis stores.

Also in 2022, FINTRAC released a report that analyzed a sample of approximately 5,000 suspicious transaction reports (STRs) related to illicit cannabis activities received from March 2020 to March 2021. The majority of these reports involved the “suspected sale and distribution of illicit cannabis by way of unlicensed online dispensaries.” In addition, FINTRAC also identified STRs concerning “the suspected production of illicit cannabis.”

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