Atlantic Lottery Corporation Wants Online Gambling

July 28, 2014

Atlantic Lottery Corporation, which handles the legalized gaming activity for the provincial governments of New Brunswick, Nova Scotia, Prince Edward Island and Newfoundland and Labrador, has once again called for public discussion about allowing it to offer online gambling like some other provinces in Canada. The report from CBC stated the lottery corporation made this announcement in its annual report for 2013-14 that was released last week. Though the Atlantic Lottery Corporation bucked a downward trend last year with a $7 million increase in profits, it continued to show a decline in video lottery earnings as well as difficulty in selling lottery products to adults younger than age of 30. Hence the need for new revenue streams. Atlantic Lottery Corporations profits have been declining steadily since 2008-09 from a peak of $398 million. Even after the increase last year the profits were only $368.4 million.

The call for a relook at online gambling came under the heading of "The Competitive Reality" in the annual report. Atlantic Lottery Corporation points out that the gaming landscape in Canada has changed. In recent years, there has been an explosion in gaming technology and accessibility. At present there are more than 2,500 offshore online gaming providers from places like Malta and Gibraltar, which are not under regulation by any Canadian authority. Canadians from the Atlantic coast are spending millions of dollars annually on these gambling sites. In the case of Atlantic Lottery the profits stay in the region to support local communities, but in the case of offshore gambling sites they do not. The report also pointed out that other Canadian government-run lottery organizations, such as those in British Columbia, Manitoba, Ontario and Quebec provide online gambling options. The Atlantic Lottery group would like to do the same as “a safe and regulated alternative would advance player protection in Atlantic Canada”. Therefore there is the need for public discussion.

The bulk of the customers of Atlantic Lottery are older than 30. The annual report stated that the lottery corporation is finding it increasingly difficult in attracting younger adults. These players have grown up in the digital world playing games with leader boards and player profiles and will continue to game online from whatever source available. Therefore it is essential to provide the younger adults with entertaining options and online casino gaming will fit the bill. At online forums there has been a mixed response to this proposal.