Lotteries in Canada are owned and operated by provincial governments. Each province has its own provincial lottery corporation that is responsible for conducting and managing lottery games in that province. There are no national or multi-province lotteries in Canada.
Provincial Lottery Corporations
Here are the provincial lottery corporations in Canada:
- British Columbia Lottery Corporation (BCLC) – owns and operates lottery in British Columbia
- Alberta Gaming, Liquor and Cannabis (AGLC) – owns and operates lottery in Alberta
- Saskatchewan Liquor and Gaming Authority (SLGA) – owns and operates lottery in Saskatchewan
- Manitoba Liquor & Lotteries – owns and operates lottery in Manitoba
- Ontario Lottery and Gaming Corporation (OLG) – owns and operates lottery in Ontario
- Loto-Québec – owns and operates lottery in Quebec
- Atlantic Lottery Corporation – owns and operates lottery in New Brunswick, Newfoundland and Labrador, Nova Scotia, and Prince Edward Island
- Yukon Lottery Commission – owns and operates lottery in Yukon
- Northwest Territories Community Lottery Program – owns and operates lottery in Northwest Territories
- Nunavut Lotteries – owns and operates lottery in Nunavut
Each provincial lottery corporation has the exclusive right to conduct and manage lottery schemes and games of chance in their respective province. They are responsible for the development, organization, conduct, management, and operation of lottery games such as lotto, scratch tickets, sports betting, and more.
Ownership and Governance
The provincial lottery corporations are owned by the provincial governments and operate as provincial crown corporations. Though they operate independently from the government, they are accountable to the provincial legislatures and relevant government ministries.
A crown corporation is a state-owned enterprise that operates as a separate legal entity from the government. Crown corporations have a varying degree of autonomy from direct government control but ultimately remain owned, mandated, and financed by the relevant level of government.
The board of directors for each provincial lottery corporation is appointed by the provincial government. The board provides oversight and strategic direction but does not get involved in day-to-day operations. Daily operations are handled by the executive management teams appointed by the respective boards.
Revenue and Profit Distribution
As government-owned enterprises, the provincial lottery corporations do not keep their profits. The net revenue generated from lottery games gets transferred back to the provincial government coffers.
This revenue is then used to support government programs and services. Lottery profits typically get directed to specific causes such as health care, education, amateur sports, recreation, culture, and community programs.
For example, in Ontario, OLG transfers its profits directly to the provincial government’s Consolidated Revenue Fund. The Ontario government then allocates this revenue to priority programs such as hospitals, amateur sports, communities, Ontario First Nations, problem gambling prevention, and more.
The amount of net revenue contributed by each provincial lottery corporation varies from year to year and province to province. But it represents a significant source of income for provincial governments.
According to the Canadian Gambling Digest, Canada’s provincial, territorial and federal governments earned over $10 billion in net revenue from regulated gambling in 2020-2021. The biggest source of this revenue was lotteries, accounting for $4.3 billion or 43% of the total.
| Province | Lottery Corporation | 2020-21 Lottery Revenue Contribution (CAD) |
|---|---|---|
| British Columbia | BCLC | $1.42 billion |
| Alberta | AGLC | $1.45 billion |
| Saskatchewan | SLGA | $389 million |
| Manitoba | Manitoba Liquor & Lotteries | $376 million |
| Ontario | OLG | $2.35 billion |
| Quebec | Loto-Québec | $1.41 billion |
| Atlantic Provinces | Atlantic Lottery Corporation | $431 million |
| Yukon | Yukon Lottery Commission | $7.9 million |
| Northwest Territories | Northwest Territories Community Lottery Program | $4.1 million |
| Nunavut | Nunavut Lotteries | $2.3 million |
National Lottery Proposals
There have been occasional proposals to establish a national lottery in Canada that would operate across the country. However, these proposals have not gained much traction due to resistance from provincial governments.
Provinces view lotteries as an important source of revenue over which they wish to retain control. There are concerns that a national lottery could divert revenues away from provincial coffers and also encroach on the turf of provincial lottery corporations.
There are also constitutional considerations given gambling falls under provincial rather than federal jurisdiction in Canada. The federal government attempted to establish a national lottery in 1969 but it was successfully challenged and overturned by Quebec in the Supreme Court.
While national lotteries exist in many other countries, Canada’s decentralized political structure has made it difficult to establish a pan-Canadian national lottery. The provincial lottery corporations remain focused on their own regional markets rather than any national operations or expansion efforts.
Indigenous-Owned Lotteries and Casinos
Some Indigenous communities and First Nations groups in Canada operate their own lotteries and casinos through various arrangements and partnerships.
These include:
- First Nations lotteries in Ontario operated by the Ontario First Nations Limited Partnership
- First Nation casinos in Saskatchewan owned and operated independently by individual First Nation bands
- Indigenous-owned casinos in Alberta operating through agreements with the Alberta provincial government
- First Nations casinos in British Columbia licensed by the BCLC
These Indigenous gambling operations provide revenue for community development, investment, and economic growth in First Nations communities. However, the scale remains small compared to the provincially-owned lottery corporations.
While Indigenous groups have gained more control over gambling operations in their own communities, provincial governments still maintain monopoly ownership over lotteries through their respective lottery corporations.
Private Lotteries
Apart from the provincial lottery corporations, private companies are restricted from operating lotteries in Canada. Federal and provincial laws provide government lotteries with a monopoly on large-scale lottery games.
There are a few exceptions in most provinces for small scale charitable lotteries, raffles, and bingos to raise funds for non-profit organizations. These are limited in size and require licenses from the provincial gaming authorities.
Illegal private and unlicensed lotteries do sometimes operate outside the law but are subject to prosecution. The provincial lottery corporations actively protect their monopolies by pursuing legal action against unauthorized lottery schemes.
Online Lotteries
The provincial lottery corporations currently own and operate online lottery platforms in their respective provinces. Websites and mobile apps are used to purchase lottery tickets and access other lottery games online.
However, only provincial residents can access provincial lottery websites and apps. There is no national online lottery platform that allows lottery play across provincial boundaries.
The provincial lottery corporations also do not allow private companies to establish online lottery betting platforms. Offshore online lotteries that attempt to offer games to Canadians are considered illegal gambling under the criminal code.
Lottery Retailers
The provincial lottery corporations distribute and sell lottery products through extensive retail networks across each province. This includes convenience stores, gas stations, grocery stores, pharmacies, and many other independent retailers.
These retailers earn a commission from lottery sales. But they act only as vendors rather than owners or operators. Ownership and operation of the lottery products and systems remains in the hands of the provincial crown corporations.
Advertising and Marketing
Lottery products are heavily marketed in Canada by the provincial lottery corporations through advertising across television, radio, print, digital media, sponsorships, point-of-sale materials, and more.
These advertising efforts are designed to promote lotteries as an entertaining recreational activity and raise awareness of games and jackpots to motivate players to participate. The branding and messaging seeks to foster positive perceptions of provincial lotteries.
However, lottery advertising remains a controversial topic with criticisms that aggressive marketing tactics fuel excessive and irresponsible gambling. The corporations claim to promote responsible gambling while critics argue they effectively encourage excessive play by heavy lottery users.
Problem Gambling
Problem gambling associated with lotteries is an issue acknowledged by provincial lottery corporations. Each corporation funds problem gambling treatment and prevention programs as part of their social responsibility mandates.
Critics argue the corporations do not invest enough and ultimately rely on revenue from problem gamblers. But the corporations maintain they are committed partners in addressing gambling disorders and providing responsible gambling messaging.
Ongoing social responsibility efforts by the corporations include voluntary self-exclusion programs, mandatory retailer training, responsible gambling education, and funding treatment and research initiatives. Mandatory ID scanning has also been implemented for lottery ticket purchases in some provinces to prevent underage play.
Lottery Criticisms
Canada’s lottery system receives various criticisms beyond just problem gambling concerns:
- Lotteries disproportionately target and derive revenue from low income groups
- Aggressive marketing promotes misperceptions of odds and fuels irrational play
- Lotteries allow government to benefit from potentially harmful gambling behaviors
- Commissions to retailers foster clusters of outlets in vulnerable communities
- Lotteries contribute to economic inequality and social problems
Advocacy groups like the Canadian Council on Social Development have argued lotteries act as a regressive tax on the poor. Critics view lotteries as exploitative instruments that rely on dreaming and desperation.
On the other hand, defenders of lotteries point to the billions in revenue contributed to social programs, the enjoyment brought to millions of casual players, and responsible gambling measures as indications of ethical and regulated operations.
Future Outlook
Lotteries will likely continue to provide significant gambling revenue for Canadian provinces going forward. Annual lottery profits are expected to keep rising given strong consumer demand and the introduction of new products.
Online platforms present ongoing growth opportunities for lottery corporations to modernize and expand their customer bases. Innovation in lottery games tied to current pop culture trends also helps drive engagement.
However, lottery revenue faces potential pressures from emerging competition in the gambling space such as legal sports betting and iGaming.
Provincial lottery corporations will need to focus on modernization initiatives and new product development to remain relevant with consumers. Responsible gambling and social responsibility programs will also require increased attention in the years ahead.
Barring any major regulatory changes, the provincial monopoly ownership model for lotteries seems poised to continue across Canada for the foreseeable future.
Conclusion
In summary, lotteries in Canada are owned and operated exclusively by provincial crown corporations. The provincial lottery corporations have monopolies on lottery products in their respective jurisdictions and contribute billions annually in revenue to provincial governments.
Attempts to establish national or private lotteries have been blocked to protect provincial revenue streams and monopoly powers. Indigenous communities have gained more control over gambling on reserve lands but provincial ownership remains dominant.
While lotteries generate money for social causes, they remain controversial given criticisms around fueling problem gambling and exploiting vulnerable groups. But provincial governments have consistently supported lottery corporations as important sources of funding.
The provincial monopoly ownership model has proven durable over many decades. While the future may bring new challenges, lotteries seem poised to continue providing significant gambling revenue to Canadian provinces for years to come.