Lotteries have a long history in Canada, dating back to the early days of European settlement. The first recorded lottery took place in Nova Scotia in 1749, with proceeds going to fund infrastructure projects. Since then, lotteries have become an important source of revenue for provincial governments across the country.
The earliest lotteries in Canada were used to help fund hospitals, universities, and other public institutions. They were often sponsored by local governments or organizations. Tickets would be sold, and the money collected would be given out as prizes, with the rest going to the designated cause.
Over time, as Canada developed, lotteries became more sophisticated. Technology allowed for larger and more complex lottery games to be administered. Modern lotteries generate billions of dollars each year for provincial coffers. However, they remain controversial, with concerns over problem gambling and the regressive nature of lotteries as a tax.
The First Lottery in Canada
The very first lottery recorded in Canada took place in Halifax, Nova Scotia in 1749. It was approved by the Nova Scotia House of Assembly as a way to raise money to build infrastructure in the young colony. £5000 was hoped to be generated.
This first Canadian lottery offered prizes of both cash and land. Tickets sold for £1 each. The grand prize was £500, a substantial sum at the time. There were also lesser prizes ranging from £10 to £50. Winning ticket holders also had the chance to claim land parcels in newly established settlements around Nova Scotia.
The lottery was administered by a group of prominent community members appointed by the House of Assembly. These included Malachy Salter, who acted as manager, and John Burbidge, the treasurer. Lottery wheels were used to randomly select the winning tickets.
While the Nova Scotia lottery of 1749 was the earliest documented, some sources suggest informal lotteries may have taken place even earlier in the colonies of New France. However, surviving records provide proof that the Nova Scotia lottery was the first officially approved and administered lottery in what would later become Canada.
Early Lotteries Fund Public Goods
After the Nova Scotia lottery of 1749, lotteries gradually became more common in colonies across British North America during the late 18th and early 19th centuries. The purpose of these early lotteries was usually to help fund major public construction and infrastructure projects.
For example, lotteries funded projects like:
- Universities – Lotteries helped establish many early universities in Canada, such as King’s College in Nova Scotia and Queen’s College in Ontario.
- Hospitals – Toronto General Hospital was funded by a lottery in 1848.
- Churches – Christ Church in St. Stephen, New Brunswick was built with lottery proceeds in the 1830s.
- Libraries – The Studio Victor Public Library in Montreal was founded using funds from an 1834 lottery.
These early Canadian lotteries did not provide regular gambling entertainment like modern lottery games. Rather, they were specific events approved for raising funds for big projects that served the public good.
Lotteries from this era also frequently funded military projects and public defenses. For instance, lotteries helped pay for fortifications during the War of 1812. Halifax also used a lottery to fund defenses in the city during the Napoleonic Wars in the early 1800s.
Regulation and Bans on Lotteries
As lotteries became more common in the 19th century, they also became more controversial. Some criticized lotteries as promoting immoral behavior and tempting people into financial ruin. This led to strict regulation and even outright bans on lotteries in much of Canada for many decades.
In Lower Canada (Quebec), lotteries were banned in 1836, before being briefly re-legalized from 1868 to 1870. Prince Edward Island also banned lotteries in 1846. Even where lotteries remained legal, they were strictly regulated. For example, Ontario passed laws limiting jackpot amounts in the 1850s.
However, occasional exceptions were made when lotteries were seen as justified for raising funds for major public projects. Even where banned, they were sometimes permitted under special acts of legislature.
The federal government also implemented Acts like An Act Respecting Lotteries in 1877 that prohibited mailing lottery tickets or advertisements across provincial borders. This further restricted lotteries from operating nationally.
20th Century Lottery Prohibition
In the early 20th century, concern over lotteries and gambling led to further crackdowns. Moral reformers objected to lotteries on social responsibility grounds. Increasing connections between gambling, organized crime, and corruption also raised alarms.
The federal Canadian Criminal Code enacted in 1892 contained a provision prohibiting all lotteries and games of chance. This ban was strictly enforced across the country for decades after. Some exceptions were made for charitable bingo games and small raffles. However, larger-scale lotteries essentially ceased to exist in Canada at this time.
It was not until legal changes in the 1960s that lottery activity was revived. In 1969, amendments to the Criminal Code once again allowed provincial governments to conduct lottery schemes. This paved the way for the revival of large-scale legal lotteries across the country.
The Quebec Lottery – Canada’s First Modern Lottery
The first major lottery to be created in Canada after the blanket prohibition was the Inter-Provincial Lottery Corporation in Manitoba in 1974. However, the first truly successful modern Canadian lottery was the Loto-Quebec lottery launched in Quebec in 1970.
Loto-Quebec was created by the Government of Quebec as a government run corporate body to operate lottery games in the province. The stated goals were to provide entertainment to Quebecers and generate revenue for government programs and services in the province.
The Quebec lottery offered its first game, a bingo-style game called “Super Loto”, in 1970. Tickets cost $1 and the grand prize was $100,000. The inaugural draw took place on September 23, 1970, and was televised across Quebec. Super Loto was an immediate success, selling over $3.2 million in tickets.
Building on this success, Loto-Quebec introduced more lottery games in subsequent years:
- La Mini Loto – A smaller daily lottery game introduced in 1972.
- Le Gros Loto – The main weekly lottery draw with bigger jackpots.
- La Grande Extra – A twice weekly game with bonus prize draws.
- Rubicon – Electronic casino-style instant win games introduced in 1991.
These games proved very popular, and lottery fever swept the province in the 1970s. By 1979 annual revenue had reached $200 million. Loto-Quebec paved the way for other provinces to launch their own modern lottery systems.
Other Early Provincial Lotteries
Following Quebec’s lead, other provinces were quick to get into the lottery business. The next major Canadian lottery was the Ontario Provincial Lottery Corporation (later known as the Ontario Lottery and Gaming Corporation). The first Ontario lottery draw took place on May 15, 1975.
The Western Canada Lottery Corporation followed, launching lottery games simultaneously across Manitoba, Saskatchewan, Alberta, and the Yukon and Northwest territories in August 1974. At the time, it was one of the largest lottery jurisdictions in North America.
British Columbia established the BC Lottery Corporation in 1985. Atlantic Canada provinces followed in the mid 1970s with the creation of the Atlantic Lottery Corporation. Lotto-Quebec, the OLG, and the WCLC merged in 2008 under the national banner of the Interprovincial Lottery Corporation.
These provincial lottery providers offered games similar to Loto-Quebec’s model with regional variations. Lottery revenue quickly became an important income source for provincial governments across Canada.
Evolution of Lottery Games
Canadian lottery games have evolved considerably from the simple lottery wheels used in 1749. Some key innovations included:
- Computerized Draws – Mechanical balls and manual draws were replaced by computer RNG systems for random number generation.
- National Games – National games with jackpots pooled across provinces like Lotto Max were introduced in 2009.
- Scratch Tickets – Instant win scratch ticket games first appeared in the 1970s.
- Sports Betting – Sports lottery games were launched in Manitoba in 2021.
- Online Lotteries – Websites and apps now allow players to conveniently check results and buy tickets online.
These innovations allowed lotteries to offer more varied games and choices to players. Technology brought convenience, better security, and bigger jackpots. Lottery expenditure per capita increased over time as a result.
Lottery Critics and Controversies
Despite raising billions for government treasuries, Canadian lotteries have drawn criticism on several fronts over the years:
- Some religious groups continued to criticize lotteries as promoting vice and handouts over hard work.
- Health experts expressed concern over problem gambling issues associated with convenience lottery products.
- Criminologists warned about the risk of fraud and money laundering associated with lottery games.
- Financial experts argued lotteries amount to a regressive tax that impacts the poor disproportionately.
In response to controversies, lottery corporations highlight the entertainment value provided to players as well as the billions raised for hospitals, education, amateur sports, and other provincial programs. Responsible gambling features like voluntary self-exclusion have also been implemented.
Despite controversies, lotteries remain popular. A 2020 survey found over 70% of Canadians have played a lottery game in the past year. Lottery revenue across Canada totals over $8 billion annually as of 2021.
Notable Canadian Lottery Wins
There have been many huge Canadian lottery jackpot wins over the years since the first draw in 1970:
| Winner | Lottery | Year | Prize |
|---|---|---|---|
| Adlin Lewis | Lotto 6/49 | 2021 | $70 million |
| Joel Ifergan | Lotto Max | 2020 | $70 million |
| Geraldine Butler | Lotto 6/49 | 2007 | $63.4 million |
| Margaret Parr | Lotto 6/49 | 1998 | $63.4 million |
The biggest individual prize went to Adlin Lewis of Brampton, Ontario who won a $70 million Lotto 6/49 jackpot in 2021. The largest ever jackpot was a $120 million Lotto Max prize split between 4 ticket holders in 2019.
Over the years, the Canadian lotteries have created dozens of multimillionaires. Even smaller prizes can be life changing. Lottery dreams continue to captivate players across the country.
Lottery Revenue Contributions
Although Canada’s first lottery in 1749 was a one-time affair, today’s provincial lottery corporations generate steady annual revenue in the billions. These funds support various provincial government programs and services.
According to the Canadian Lottery and Gaming Corporation (CLGC), here are some key facts about where lottery revenues go:
- Total annual revenue from lotteries across Canada is over $8 billion.
- On average, about 24% of lottery revenue goes towards provincial government programs and services.
- The majority, 58%, funds lottery prizes.
- Retailers receive 10% as commissions.
- The remaining 8% covers operating expenses.
Major benefactors from lottery proceeds include:
- Hospitals – over $2 billion to date.
- Universities and colleges – over $5 billion.
- Amateur sports – over $5 billion.
- Recreation and cultural programs – over $3 billion.
Lottery income has become an integral source of funding for programs citizens rely on across healthcare, education, sports, arts, and recreation.
The Future of Canadian Lotteries
As lotteries continue evolve in Canada, several key trends are expected in the future:
- More games will shift online, allowing for mobile app ticket purchases and digital play.
- Lotteries will expand into new offerings like sports betting as regulations open up.
- Big data analytics will allow lotteries to refine offerings catered to specific player groups.
- Jackpots and prize payouts will continue growing driven by technology.
- Responsible gambling initiatives will increase to address problem gaming concerns.
- Security tech like blockchain may be implemented to improve lottery integrity.
While rising controversy may lead to some regulation, lotteries remain popular. They will likely continue adapting with the times to offer new gaming experiences while generating essential provincial revenue.
Canada’s first lottery in 1749 paved the way for a vibrant industry that has funded hospitals, schools, and dreams across the country for over 250 years. Lotteries seem destined to remain an integral part of Canadian life for generations to come.
Conclusion
In summary, the first recorded lottery in Canada took place in Halifax, Nova Scotia in 1749. Early lotteries helped fund major infrastructure projects that served the public good. Lotteries were later banned nationwide in the late 19th century before being revived by provincial governments in the 1970s. The Quebec lottery of 1970 was the first modern Canadian lottery. Today, provincial lottery corporations generate over $8 billion annually, supporting key government services. Lotteries have evolved substantially over the centuries but remain controversial. As lotteries continue adapting with new technology, they will likely keep offering entertainment and funding public programs far into Canada’s future.