Atlantic Lottery
2024-2025 Annual Report
Our Social Purpose
To make a game-changing impact for the people and places of Atlantic Canada.
No matter where you live in Atlantic Canada, the impact of Atlantic Lottery is all around you.
Our impact builds and betters our communities. We put everything we do and 100% of the profits we make into giving back to our home. Lottery profits are not ours; they are returned to our provinces and invested in our communities for the good of everyone.
Our impact puts the interests of Atlantic Canadians first. We play fair and keep the fun in the game. We champion healthy play and support players. We are committed to being open and transparent. Trusting who you’re playing with and knowing where the money goes matters.
We’re proud to share playing and winning experiences with Atlantic Canadians that keep the benefits here – making a positive and lasting difference that’s nothing short of game-changing.
Chair Message
I’m pleased to share my first message as Chair of Atlantic Lottery’s Board of Directors, and to reflect on a year marked by strong financial performance and a continued focus on serving Atlantic Canadians.
In 2024-25, Atlantic Lottery returned $498.7 million in profit to the four Atlantic provinces. These funds support the essential services that help our communities thrive, including health care, education and infrastructure. As a publicly owned corporation, every dollar of profit stays right here – strengthening our communities and reflecting the trust placed in us by Atlantic Canadians.
Our Board of Directors is committed to helping the organization navigate a rapidly changing landscape, one shaped by increased digital competition, new technologies and the continued threat of illegal gambling operators. We remain focused on good governance, long-term sustainability and supporting management in delivering value for our provincial shareholders.
As we look ahead to Atlantic Lottery’s 50th anniversary in 2026, we are reminded of the legacy built over the past five decades and the responsibility we have to ensure the organization grows and adapts with integrity. I’d like to thank my predecessor, long-time Chair Sean O’Connor, for his valuable contributions to this legacy. He has played an important role in setting up the Board for success through his dedication and support for Atlantic Lottery. On behalf of the Board, we look forward to continuing to put the interests of Atlantic Canadians first by championing healthy play and giving back to our communities.
Daniel M. Campbell, CFA
Chair, Board of Directors
CEO Message
It’s a privilege to share my first annual message as President and CEO of Atlantic Lottery. I want to begin by thanking my predecessor, Patrick Daigle, for his leadership and years of dedicated service to Atlantic Lottery and our region. I’m grateful for the strong foundation he helped build and excited to carry that work forward.
I’m also proud to lead our organization at a moment of both reflection and ambition, as we approach our 50‑year anniversary in 2026. This past year has been one of strong performance and continued commitment to our purpose: making a game-changing impact for the people and places of Atlantic Canada.
In 2024-25, we returned $498.7 million in profit to our provincial shareholders – an $11.7 million increase from last year – while expanding our share of the online gaming market from 22 per cent to 34 per cent. This is a key step toward our five-year goal of reaching 50 per cent of the regional online gaming market, helping to reduce the approximately $200 million that leaves our region each year through illegal gambling operators.
What truly sets Atlantic Lottery apart from illegal and unregulated gambling sites is our unwavering commitment to healthy play. In 2024-25, nearly 114,000 voluntary healthy play tools were adopted by our players on alc.ca, in addition to the mandatory tools in place for everyone. This represents a 47 per cent increase from the previous year. We continue to explore new ways to promote healthy play and encourage gambling literacy among our players through promotional efforts, public activations and by maintaining our responsible gambling programs, which continue to meet the highest international standards.
It’s been an honour to be part of the Atlantic Lottery team since 2022 in my previous role as Chief Strategy Officer. In my new capacity as President and CEO, I want to sincerely thank our team and Board members, shareholders, retail partners and players for their continued trust and support. I’m excited and energized about the year ahead as we celebrate 50 years by continuing to deliver lasting impact in every corner of our region.
Dallas McCready
President and CEO
Executive Summary
In 2024-25, Atlantic Lottery remained committed to being the first choice for lottery and gaming products for players in the region while maximizing profits to the four Atlantic provinces. This resulted in a return of $498.7 million to help support critical programs and services that benefit Atlantic Canadians. While the overall profit was $1.3 million under budget, our performance resulted in a year-over-year increase of $11.7 million compared with 2023-24. The profit Atlantic Lottery returns to our region is balanced with our commitment to social responsibility and industry-leading healthy play tools.
We delivered $255.6 million from the Retail and iLottery lines of business and $243.1 million from the Destination and Red Shores line of business in 2024-25. In addition to the profit distributed to the provincial governments, Atlantic Lottery remitted $62.4 million in taxes and federal contributions to the provincial and federal governments.
Atlantic Lottery continues to strengthen our online offerings and player experience to address changing player preferences and behaviours and the competition we face from illegal gambling operators. Focusing on these key strategic priorities ensures that dividends returned to our four provincial shareholders remain strong. As a result, profit for the iLottery line of business increased by $25.9 million or 29 per cent. In addition, Atlantic Lottery has increased the market share of total online betting and gaming activity in the region to 34 per cent, up from 22 per cent in 2023-24.
Red Shores delivered a profit of $2.5 million in 2024-25, representing a 41 per cent decrease to budget. Due to ongoing renovations combined with economic factors, Red Shores’ profit declined by $1.4 million from the prior year.
The Destination line of business saw a decline in profit of $12 million or 5 per cent. Meanwhile, the Retail line of business has remained relatively flat, with a slight decrease in profit of $800,000 or 1 per cent. These lines of business were negatively impacted by recent economic challenges and changing consumer behaviours, such as the shift to online gaming and shopping, and the increased use of self-service checkouts at retail stores.
Atlantic Lottery was founded 49 years ago to provide Atlantic Canadians with a regulated gaming option and to support stronger communities. Although these lines of business saw a slight decline in 2024-25, they are integral to this commitment and are crucial for the organization’s long-term success. Continued investments are being made into the Destination and Retail networks through a variety of initiatives, including new retail lottery terminals and digital displays, as well as new video lottery terminals.
Profit by Province(in millions)
Community Impact Report
At Atlantic Lottery, our social purpose guides every decision we make – we are always striving to make a game-changing impact for the people and places of Atlantic Canada. As the region’s only regulated provider of online gambling and sports betting products, it is our responsibility to serve the best interests of Atlantic Canadians by offering safe, legal and responsible gambling options. We are committed to protecting players, minimizing the influence of illegal operators and ensuring our communities benefit directly from the profit we deliver.
Each year, 100 per cent of our profit stays right here in Atlantic Canada, helping to fund essential public services like health care, education and infrastructure. Unfortunately, illegal gambling sites are still targeting Atlantic Canadians, and many don’t understand that these sites aren’t licensed or regulated to operate legally in our region. This means that approximately $200 million is leaving our local economy every year – money that could be reinvested in the places we live and work.
We’re continuing to respond to this challenge by enhancing our player experience. We consistently provide engaging products while upholding our strong commitment to player protection. Our internationally recognized responsible gambling tools and resources help promote healthy play and informed decision making.
Beyond the products we offer, we remain focused on making a broader social impact. In 2024-25, we continued to support causes and community initiatives that align with our values through sponsorships and volunteerism. We also took meaningful steps forward in our corporate social responsibility journey by establishing our environmental, social and governance (ESG) framework.
The following pages highlight our progress this year. We’re pleased to share what we’ve achieved and how we’re continuing to evolve to support Atlantic Canadians in the years to come.
Regional Support
Atlantic Lottery proudly supports community initiatives that make a positive impact across Atlantic Canada. These initiatives take many forms – from cultural celebrations and festivals to charitable programs and wellness-focused efforts – and reflect the values and priorities we share with the communities we serve.
Each year, through our Sponsorship Program, we support more than 100 community initiatives that celebrate local culture and heritage, promote wellness, and drive community and economic development. In 2024-25, our support reached every corner of the region, helping to strengthen community spirit, drive local tourism and foster meaningful inclusion.
We are proud to have partnered this year with initiatives that reflect the vibrancy and diversity of Atlantic Canada, including:
- Afrifest and the East Coast Ukrainian Festival in Nova Scotia;
- Exposition agricole et le Festival acadien de la région Évangéline in Prince Edward Island;
- River of Pride, the Fundy Sea Shanty Festival and Menahqesk Powwow in New Brunswick; and
- Little Bay Heritage Society Capelin Festival and Corner Brook Multicultural Fair in Newfoundland and Labrador.
We are also proud to support other community-focused causes throughout the year. Atlantic Lottery continued to provide financial support to charitable initiatives such as United Way campaigns and events. Employees also participated in United Way’s Day of Caring and made significant contributions to the United Way through payroll deductions, reinforcing our shared commitment to making a difference where it matters most.
Atlantic Lottery also encourages employees to volunteer in their communities by providing paid volunteer hours to take time off work. This allows employees to support their passion for making a positive impact while aligning with Atlantic Lottery’s purpose-driven mission.
Beyond the game, we help support our communities.
A Foundation of Healthy Play
Healthy play is at the heart of everything we do at Atlantic Lottery. We are committed to helping players enjoy our games responsibly as a form of entertainment that fits within their time and budget. That means providing the tools, information and support they need to make informed choices, while building safeguards directly into their experience with us.
On alc.ca, some healthy play features are mandatory for every registered player – including age and identity verification and weekly deposit limits. This means all players interact with healthy play tools from the outset. Additional voluntary tools include daily wager and time limits, session time caps, pop-up reminders, 24-hour breaks in play, self-exclusion options and personalized PlayWise Ratings.
Beyond alc.ca, we incorporate healthy play across our retail, video lottery and Red Shores lines of business. In all environments, healthy play training is mandatory for retailers and operators and PlayWise materials are available on site. In retail environments, we implement ID checks, operate a mystery shopper program, and self-serve terminals feature age of majority controls to ensure Atlantic Lottery products are only purchased by people 19 and older. We display clocks, funds in cash instead of credits and our gambling support line on every video lottery terminal. We provide Break in Play features on video lottery terminals and at Red Shores to remind players to take periodic pauses. Red Shores also provides a PlayWise Information Centre, PlayWise advisors, referrals to community support organizations, as well as player account statements and limit setting for Rewards Club members, to encourage healthy play.
Atlantic Lottery's healthy play programs continue to meet the highest global standards. We have held the World Lottery Association Level 4 Certification since 2010 and RG Check Accreditation from the Responsible Gambling Council since 2022. Our Red Shores Racetrack & Casino in Charlottetown has proudly maintained RG Check Accreditation since 2013.
Growing Voluntary Engagement
One of our goals is to encourage more players to engage with Atlantic Lottery's discretionary healthy play tools, and in 2024-25, we saw significant progress. While we narrowly missed our ambitious balanced scorecard target, we reached 98 per cent of our goal for discretionary tool usage, with 113,853 discretionary healthy play tools adopted across our player base – a 47 per cent increase over the previous year's total of 77,473.
This increase is directly tied to our expanded proactive marketing and awareness efforts, which emphasize that healthy play is a regular, integrated part of enjoying Atlantic Lottery games responsibly. We are continually improving our ability to deliver the right healthy play messages at the right time, tailored to how players use our site and mobile app.
Innovative Campaigns and Initiatives
This year, we brought healthy play messaging into new spaces and formats, reaching players where they are in creative and engaging ways:
- At Sommo Festival 2024 in Cavendish, Atlantic Lottery created an eye-catching activation designed to spark conversations about gambling literacy. Festival attendees were invited to play our PlayWise Coin Flip game. This was a unique opportunity to bust gambling myths, demonstrating how prior coin flips don't influence the result of the next flip, the odds of winning are random, and gambling is for fun and entertainment – not to make money.
- We launched the 2025 PlayWise Pass, an engagement contest that made learning about healthy play fun and rewarding. Participants had the chance to win VIP passes to five Atlantic Lottery-sponsored festivals and events taking place during the summer of 2025, along with accommodations and an $8,000 travel voucher. Contestants had the opportunity to earn bonus entries each day by testing their gambling knowledge. More than 200,000 entries were submitted between June 21 and Sept. 19, 2024.
- Every month, a PlayWise Advisor hosts engaging activities at Red Shores to help guests explore key concepts in gambling literacy. Through interactive formats like games and other creative activities, these monthly events support guests in dispelling common myths while learning about PlayWise tools and resources, such as limit setting on slots and the Break in Play Program. These events also allow guests to connect directly with PlayWise Advisors, who provide non-judgmental information, education and support to reduce stigma and promote healthy play.
- Atlantic Lottery is also embedding healthy play more deeply across product campaigns – not just as a standalone topic, but as a consistent part of the overall player experience. This reflects our belief that responsible play should be a natural and expected part of every interaction.
Continuous Improvement
Behind the scenes, we're always refining and evolving our approach to healthy play, from updating materials for video lottery operators to expanding internal training and resources to identifying new ways to proactively support players at higher risk. Renovations currently underway at Red Shores will include a significantly larger and more visible PlayWise area to better support guests with responsible gambling information and tools. These efforts put our players first and reflect our ongoing commitment to continuous improvement, rooted in the belief that healthy play is essential to long-term player trust and sustainability.
Advancing Our ESG Journey
Atlantic Lottery continues to make meaningful progress on our Environmental, Social and Governance (ESG) journey. In 2024–25, we built on the foundational work completed in the previous year and took further steps toward developing a comprehensive ESG framework, including establishing ambition statements and creating corresponding performance targets, which are currently under development. We're committed to ensuring the goals we set are realistic, relevant and, most importantly, meaningful. Our efforts so far have been informed by research across other Canadian lotteries and Atlantic-based companies, as well as consultations with players, employees and stakeholders.
The Social Responsibility and Sustainability Board Committee continues to oversee this work and ensure sustainability remains embedded in our operations and community engagements.
Even as the activities within our formal framework evolve, our commitment to ESG is reflected in action – from the healthy play initiatives and Inclusion, Diversity, Equity and Accessibility (IDEA) training already making an impact, to our climate work and data protection efforts that keep trust with players and partners. We look forward to continuing to advance this work.
Our ESG Focus Areas
Climate
We demonstrate a strong commitment to addressing climate change within our business.In 2024–25, we continued work toward the completion of a climate assessment, including a preliminary review of our operational impact. We also completed a greenhouse gas (GHG) emissions inventory that calculated Atlantic Lottery’s and Red Shores’ GHG emissions to determine where we can make an impact. We remain focused on understanding our climate change risks so we can enhance our business resilience.
Healthy Play
We champion healthy play and actively support players who are experiencing concerns related to their gambling.From mandatory tools that support online play to innovative outreach campaigns, our efforts in 2024–25 focused on building awareness, growing player engagement and integrating healthy play into everyday interactions.
Community Impact
We maximize our impact by engaging in the communities where we live, work and play.Every dollar of profit generated by Atlantic Lottery stays here in Atlantic Canada to support essential services like health care and education. Our commitment also includes community sponsorships, local events, and employee volunteerism. In 2024-25, 176 employees logged more than 1,450 volunteer hours, a demonstration of the passion and generosity that fuels our culture.
Inclusion, Diversity, Equity and Accessibility (IDEA)
We encourage inclusion to thrive by reflecting the diversity of Atlantic Canada in our workforce, our products and our operations.This year, our IDEA efforts continued through employee training and engagement, and by advancing inclusion on our digital platforms. On alc.ca, we began enhancing accessibility by aligning with global best practices in web design and user experience, helping ensure a welcoming environment for all players.
Data Security and Privacy
We safeguard our systems and processes to protect our players, employees and partners and keep their trust.Atlantic Lottery uses industry standard security encryption to protect players’ alc.ca accounts and personal information. We perform regular and independent audits on our gaming systems to ensure our security meets or exceeds industry best practices.
IDEA Leadership Council
At Atlantic Lottery, we believe that inclusion isn't just a value – it's a catalyst for transformation. Since 2017, we've been on a journey to embed Inclusion, Diversity, Equity, and Accessibility (IDEA) into the heart of our culture through our IDEA Leadership Council. Today, IDEA is a strategic priority, fully integrated into our ESG framework. We track measurable targets internally to guide progress, and our ambition reflects a deep commitment to corporate social responsibility.
Our IDEA ambition is clear: We encourage inclusion to thrive by reflecting the diversity of Atlantic Canada in our workforce, our products and our operations.
In 2024–25, we launched our third diversity and inclusion census. Early results show strong improvements in how employees experience inclusion at Atlantic Lottery – from feeling valued and supported, to believing in equal opportunity for all. These insights affirm that our culture is growing stronger, more inclusive and more representative of the communities we serve.
“I am proud to be part of an organization that is actively exploring ways to further develop its DEI strategy and take a hard look at areas that require a deeper focus. The IDEA Leadership Council allows people from roles across Atlantic Lottery to help ensure that diversity, equity and inclusion are embedded in our responsibility to living our values. It brings various perspectives together to build awareness, provide feedback and share resources.”
Hal Atwood
Marketing Specialist
Building Belonging Through Community
We've created space for connection and allyship through employee-led affinity groups – these voluntary communities bring our employees together around shared identities and interests. Over 80 employees have joined groups such as:
- Pride@AL: Celebrating LGBTQ2S+ identities through workshops, creative activities, and participation in local Pride parades.
- Indo-Canadian Group: Honouring cultural traditions through celebrations like Holi, henna art, and delicious treats.
- Women in the Workforce: Fostering dialogue around wellness, empowerment, and work-life balance.
These groups are a living expression of our IDEA focus areas: Inclusion and Accommodation, Diverse Representation and Celebration, and Education and Awareness.
Reflecting Atlantic Canada and Beyond
Our Atlantic Lottery team represents backgrounds from every inhabited continent, and our digital world map - filled with colourful pins - tells a powerful story. From Canada and the U.S. to Brazil, Europe, Africa, Asia, and Australia, our employees bring diverse perspectives that enrich our workplace and strengthen our impact.
Learning, Listening and Leading
We continue to invest in meaningful learning experiences that deepen understanding and drive change. This year, highlights included:
- The Wabanaki Blanket Exercise: A powerful journey through Indigenous history, led by Elders Chris Brooks and Dr. Maggie Paul.
- The People and The Past: An online course offered to all employees and Board members in partnership with Indigenous Treaty Partners.
- Be More Than a Bystander: A workshop facilitated by Black Lives Matter NB, empowering employees to address racism in the workplace and beyond.
- IDEA 101 Training at Red Shores: Foundational in-person sessions in Charlottetown and Summerside, reaching nearly 180 participants.
We also recognize key cultural and awareness events throughout the year – from International Women's Day and Neurodiversity Celebration Week to Ramadan, National Acadian Day, Lunar New Year and many more – ensuring our workplace reflects and celebrates the richness of our communities.
Looking Ahead
With IDEA now embedded into our ESG Framework, we're advancing with greater focus, accountability, and momentum. Our measurable internal targets – ranging from accessibility standards and training participation to inclusion scores – are guiding us toward a future where everyone feels seen, heard and empowered.
Where the Money Goes:
92 Cents of Every Dollar Stays Here
to Atlantic Canada
We returned $498.7 million in profit to the four Atlantic provinces in 2024-25, helping to fund key services, such as health care, education and infrastructure. Since the creation of Atlantic Lottery, we have returned more than $12.8 billion to help fund the critical services we all use.
Atlantic Canada
We paid out $461.2 million in prizes and celebrated winners across Atlantic Canada – an increase of almost $14 million from 2023-24. Since 1976, Atlantic Lottery has awarded more than $12.5 billion in prizes.
Atlantic Canada
Retailers received over $120.7 million in commissions in 2024-25. Our network of independent partners consists of over 3,500 Atlantic Canadian businesses that earn income by selling Atlantic Lottery products, helping to create employment in our communities.
Atlantic Canada
Atlantic Lottery is a significant driver of economic development. Our operations indirectly contributed to more than 7,600 jobs and just under $2 billion in economic activity across the Atlantic provinces in 2024-25.
Atlantic Lottery employs more than 700 people in the region, who live, work, volunteer and spend their salaries in our communities.
Atlantic Lottery sometimes partners with companies outside of the region, depending on the needs and the availability of third parties and the services they provide.
As a business, Atlantic Lottery pays taxes to the government. This results in further support for essential services that benefit Atlantic Canadians and our communities.
We are proud that 92 cents of every lottery dollar in 2024-25 stayed in our region.
This is an essential part of Atlantic Lottery’s social purpose: to make a game-changing impact for the people and places of Atlantic Canada.
Breaking Down the Lottery Dollar
Winners
In 2024-25, 1,343 prizes of $10,000 or more were paid out to Atlantic Canadians.
That’s an increase from 1,074 major winners the previous year.
Major wins ($10,000 or more) by province
447
New Brunswick
423
Newfoundland and Labrador
434
Nova Scotia
39
Prince Edward Island
Balanced Scorecard
2024-25 Corporate Performance to Targets
Atlantic Lottery’s balanced scorecard is the primary method of monitoring the company’s performance against its annual plan. Each year, the scorecard is established by Atlantic Lottery’s management team and approved by the Board of Directors. Its measures are essential to ensuring Atlantic Lottery continues to adapt to and excel within its evolving competitive environment.
| Measure | Actual | Target |
|---|---|---|
| Financial | ||
| Betting and Gaming Gross Revenue1 | $110.3M | $93.2M |
| Core Gross Gaming Revenue2 | $780.6M | $808.4M |
| Net Profit3 | $498.7M | $500.0M |
| Player | ||
| Known Players4 | 372,461 | 383,911 |
| Usage of Online Discretionary Healthy Play Tools5 | 113,853 | 116,210 |
| Operational | ||
| Operational Efficiency6 | $5.8M | $3.0M |
| Brand Reputation Score7 | 41 | 43 |
| Learning and Growth | ||
| Employee Engagement8 | 76% | 76% |
1 Revenue less prizes, sales discounts and free play allowance from Casino, iBingo and online Sports betting and sales discounts.
2 Revenue less prizes, sales discounts and free play allowance paid to players from all products not included in “1.”
3 Overall bottom-line after-tax profit distributed back to Atlantic Lottery shareholders and, ultimately, to our communities.
4 Total number of verified unique accounts that have been active on alc.ca or entered retail tickets via 2Chance in the previous 12 months.
5 The number of healthy play tools adopted by alc.ca/app users.
6 Cost savings realized from contract negotiations, cost avoidance, and internal resource time savings from process improvements and automation.
7 A comprehensive survey-based measure based on 24 attributes that assesses the sentiment of Atlantic Canadians towards Atlantic Lottery.
8 A comprehensive survey-based measure using multiple attributes that provides insights into employee engagement.
Financial Position Overview
The following provides an overview of the financial position of Atlantic Lottery for the year ended March 31, 2025. It is to be read in conjunction with the associated audited consolidated financial statements and note disclosures, which are prepared in accordance with International Financial Reporting Standards (IFRS). Refer to notes in the Consolidated Financial Statements (notes 1, 2 and 3) for additional detail regarding the nature of operations for Atlantic Lottery, the basis of presentation and the relevant accounting policies employed.
Atlantic Lottery remains committed to increasing the profit we return to our four provincial shareholders while offering responsible products and resources to our players. As seen through the 2024-25 balance sheet performance, we continue to fund new investments in our products and preserve a healthy pension plan to support past, present and future employees. Given the regular distribution to shareholders, we continue to maintain a strong cash flow, which is detailed in the Statement of Cash Flows.
In 2024-25, Atlantic Lottery continued to make capital investments in support of new product offerings to ensure a strong position for future success and to strengthen our market share in the face of an increasingly competitive industry. These investment decisions align with our strategy to prioritize projects and ensure responsible cash management policies.
The decrease in assets is primarily due to accounts receivable, which experienced a decline in 2024-25, after a Lotto 6/49 Gold Ball Jackpot prize was claimed in March 2024. Accounts receivable increased in 2023-24 due to the $64-million balance owed by the Interprovincial Lottery Corporation. The decrease in 2024-25 was partially offset by an increase in property and equipment created through additional investments into capital assets, most notably video lottery terminals. There was also an increase in employee future pension benefits as Atlantic Lottery’s pension plan continued to strengthen.
The decrease in liabilities and shareholders’ equity can be attributed to several factors. Accounts payable declined due to the timing of the $64-million Lotto 6/49 win in the prior year. There was also a decrease in debt due to the scheduled principal repayments throughout the year. Lastly, there was a decrease in the amounts due to shareholders due to fluctuating March profits. However, these decreases were offset by increases in the line of credit and short-term financing, as a short-term CORRA loan was outstanding at year-end. Atlantic Lottery is negotiating a new long-term debt facility, which is expected in 2025-26 for $65 million. Additionally, retained earnings experienced an increase due to the remeasurements of the pension plan.
Consolidated Balance Sheet (thousands of dollars)
| 2024-25 | 2023-24 | Variance | ||
|---|---|---|---|---|
| $ | % | |||
| Total Assets | $380,979 | $407,290 | ($26,311) | -6% |
| Total Liabilities | $247,959 | $285,938 | ($37,979) | -13% |
| Total Shareholders’ Equity | $133,020 | $121,352 | $11,668 | 10% |
Financial Position Overview
Revenue consists of gross sales less consideration paid to the player (prize expense). The year-over-year increase in revenue of $18.2 million or 2 per cent was driven by the strong iLottery performance, which had growth of $37.3 million. The iLottery results were driven by the strong performance within the Casino brand. This resulted from a full year of Casino offerings in Newfoundland and Labrador, marketing initiatives and a shift in players moving to online play. The strong iLottery results were partially offset by a decrease in Destination results of $15.2 million. Destination sites were impacted by current economic conditions, which are impacting players’ disposable income, as well as the shift to online play.
Direct expenses increased by $2.1 million or 1 per cent in 2024-25, driven by $6.4 million from other direct costs. This is tied to revenue share costs with Atlantic Lottery’s online gaming vendors due to increased sales and our continued investment in providing players with more online gaming titles. Commissions paid to retailers decreased by $4.2 million, which is tied directly to less revenue, specifically related to video lottery.
Operating and other expenses increased $4.3 million or 2 per cent from the prior year. The increase was driven by inflation and cost pressures, and additional marketing initiatives that were implemented to achieve year-over-year sales growth.
| Consolidated Statement of Operations (Thousands of dollars) | |||
|---|---|---|---|
| 2024-25 | 2023-24 | Variance | |
| Revenue | $890,863 | $872,680 | $18,183 |
| Direct Expenses | $161,299 | $159,178 | $2,121 |
| Gross Profit | $729,564 | $713,502 | $16,062 |
| Operating and Other Expenses | $230,795 | $226,474 | $4,321 |
| Net Profit | $498,769* | $487,028* | $11,741 |
| Gross Profit % Revenue | 81.9% | 81.8% | 0.1% |
| Operating Expenses % Revenue | 25.9% | 26.0% | -0.1% |
| Net Profit % Revenue | 56.0% | 55.8% | 0.2% |
*Consolidated Net Profit includes gain from subsidiary of $0.1M
Profit by Province (in millions)
Profit by Line of Business (in millions)
Consolidated Statement of Cash Flows
The statement of cash flows provides the basis to assess the generation and spending of cash.
Operating activities present the net of cash inflows and outflows from regular business activities. The strong net profit results are adjusted for non-cash items such as depreciation and amortization and non-cash working capital. The result is a total of $534.1 million generated in cash flow from regular business activities.
Investing activities represent the amount spent on property, equipment and intangible assets. During the year, Atlantic Lottery purchased several necessary capital assets. Significant areas of investment in 2024-25 included the purchase of new video lottery retail terminals and a central video lottery system, the renovation of Red Shores and operational technology hardware.
Financing activities reflect cash inflows and outflows relating to debt. Total financing activities amounted to $20.4 million. This is driven by the increase in short-term CORRA loans, which are used as a lending strategy to decrease interest expense on the line of credit balance, offset by the repayment of long-term debt principal on three outstanding loans. The line of credit balance increased in 2024-25 as a result of capital asset purchases and will be replaced with a new long-term loan in 2025-26.
Overall, the net change for cash in 2024-25 is a decrease of $200,000. Cash flows continue to be very positive, with liquidity risk managed through forecasting and ongoing assessment of cash flow requirements.
| Consolidated Statement of Cash Flows | ||
|---|---|---|
| 2024-25 | 2023-24 | |
| Operating Activities | $534,092 | $526,934 |
| Investing Activities | ($49,653) | ($35,068) |
| Financing Activities | $20,424 | $2,471 |
| Distribution to Shareholders | ($505,064) | ($491,830) |
| Change in Cash Balance | ($201) | $2,507 |
| Opening Cash Balance | $11,919 | $9,412 |
| Closing Cash Balance | $11,718 | $11,919 |
*Cash flows presented using the indirect method.
Business Overview
Draw Games
The Draws Category delivered net revenue of $174.8 million in 2024-25, an increase of $1 million or 0.6 per cent compared with the previous year.
Lotto Max offered its first national promotion, the Lotto Max Dream Big Contest in 2024-25, offering players a second chance to win various guaranteed cash prizes, featuring 30 weekly guaranteed $10,000 prizes and one grand prize draw of $1 million. During the contest period, 47 per cent of Lotto Max tickets were entered from 596,000 players, resulting in an increased percentage of net sales from 1.9 per cent to 3.8 per cent.
In 2024-25, Lotto Max’s net revenue reached $65.5 million, an increase of $6 million from 2023-2024. The higher net revenue was driven by Lotto Max’s favourable roll pattern offsetting sales per jackpot decline. When the Lotto Max jackpot reaches $50 million, additional $1 million Maxmillion draws are offered. In 2024-25, Lotto Max offered Maxmillion draws significantly more often than in the previous year, with 56 Maxmillion events compared to 30 in 2023-24. There were 23 $70-million-plus jackpots compared to seven in the previous year. In the later part of 2024-25, the maximum Lotto Max jackpot increased to $80 million, resulting in two record-breaking $80 million jackpot events.
In 2024-25, Lotto 6/49 net revenue finished the year at $38.4 million, a $5.5 million decrease compared with 2023-24. Two factors contributed to the year-over-year decline: Lotto 6/49 experienced a less favourable roll pattern than in 2023-24, with 10 fewer jackpots over $40 million and four fewer jackpots over $60 million. Lower sales per jackpot in comparison with the previous year also impacted results. Lotto 6/49 offered seven Super Draw events.
Draw Games Net Revenue (rounded in millions)
Instant Games
Scratch’N Win achieved a record sales year in 2024-25, exceeding the record sales and profit from previous years. Its net revenue was $85.9 million in 2024-25, an increase of $500,000 or 0.6 per cent compared to the previous year. This was primarily due to the performance of $5 MEGA 360, resulting in net revenue of $10.2 million, an increase of $3.1 million compared with the previous year. This was the first full year MEGA 360 was in the market. The variety quick play games exceeded the previous year with results of $21.4 million, which represents a $6-million increase over 2023-24. The performance was driven by the launch of additional $10 games and a $20 ticket to compensate for fewer national quick play games.
Scratch’N Win did experience some declines in other brands, such as Crossword, which brought in $21.6 million, an $800,000 decrease under 2023-24 due to lower price point performance; Set for Life, which returned $7.6 million - $900,000 less than in 2023-24; Variety Extended Play, which returned $6 million, resulting in a $2.1 million decline from the previous year due to one less launch; and National Quick Play, which reported revenue of $15.1 million, a $4.4-million decrease compared with 2023-24 due to fewer launches in 2024-25.
The 2024-25 Breakopen net revenue was $38.7 million, an increase of $1 million or 2.6 per cent from the previous year. Breakopen sales have stabilized after significant impacts in 2020-21. Year-over-year performance was positive in all provinces in 2024-25. These strong results were driven by $1 Flaming 7s, representing $12.1 million or 31 per cent of the total category’s net revenue.
Scratch’N Win Net Revenue (rounded in millions)
Breakopen Net Revenue (rounded in millions)
iGames
Net revenue from iGames reached $159.2 million in 2024-25, representing an increase of $33.1 million or 26.2 per cent over 2023-24.
The growth of Casino in 2024-25 can be attributed to product selection, new marketing tactics, a full year of Casino offerings in Newfoundland and Labrador and the launch of over 190 games on Atlantic Lottery’s mobile platform, providing players with additional choices and strengthening Atlantic Lottery's ability to compete in a competitive market.
Casino increased by 46.8 per cent over 2023-24 results, driven by high jackpot games. In addition, Digital Instant games experienced a 2.4 per cent increase in comparison with 2023-24.
iGames Net Revenue (rounded in millions)
Sports
In 2024-25, net revenue in the Sports category was $13.2 million, resulting in a decrease of $1.7 million or 11.3 per cent below 2023-24 results.
PRO•LINE sales were up by 3 per cent compared with the previous year, driven by 10 per cent growth in alc.ca wagering. Active online players grew by 7 per cent, and digital revenue – the sum of online and retail QR code purchases – made up over 78 per cent of all sports betting sales. With its continued growth in annual sales and active players, PRO•LINE has remained resilient against competition from unregulated sports-betting sites operating illegally in Atlantic Canada.
Net gaming revenues, however, have dropped for a second consecutive year due to higher prize payouts in 2024-25. While professional football delivered unfavourable results during the fall, this shortfall also reflects an increasingly savvy player base that is evolving its betting tendencies. Atlantic Lottery’s short-term roadmap includes modernizing our sports betting platform to both manage liability more effectively and introduce new products and features to our portfolio.
Sports Games Net Revenue (rounded in millions)
Video Lottery
Video lottery net revenue in 2024-25 was $391.8 million, a decrease of $15 million or 3.7 per cent compared to the prior fiscal year.
In 2024-25, video lottery play declined by 4.1 per cent compared to 2023-24. Driven by economic factors and changing habits, players spent less time and money playing video lottery. They also tended to cash out earlier and wagered less on average than in the previous year. This decline was experienced in all provinces except Prince Edward Island, which realized growth of $200,000. Newfoundland and Labrador’s revenue decreased by $6.3 million; New Brunswick was down by $5.2 million; and Nova Scotia by $3.7 million.
Video Lottery Net Revenue by Province (rounded in millions)
Red Shores
Red Shores’ net revenue was $22.6 million in 2024-25, a decline of $700,000 or 2.8 per cent below the previous year.
Casino games experienced a decline compared with 2023-24. While the number of patrons remained steady year-over-year, customers spent less onsite, likely due to economic factors, including the increased cost of living.
Live racing revenue remained consistent in 2024-25. While there was a decrease in onsite wagering for both live and simulcast racing, it was offset by increased online wagering through HPIbet. The service allows Red Shores’ racing broadcast to reach a broader audience through its online platform. Additional race cards were added to Summerside Raceway in 2024-25 that were not budgeted, due to popular demand for more racing at this location.
The new O’Brien’s restaurant opened in May 2024 after extensive renovations that commenced in October 2023. This project brought much-needed rejuvenation to the space, and customers were excited to visit the new space for another unique dining experience at Red Shores. Due to some delays in the opening date, restaurant revenue in 2024-25 was lower than budgeted.
Red Shores Net Revenue by Category (rounded in millions)
Financial Highlights – Provincial Net Profit ($ in ‘000s)
| Provincial Net Profit* | ||||||||
| New Brunswick | Newfoundland and Labrador | Nova Scotia | Prince Edward Island | |||||
| 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | |
| Net ticket sales | 137,289 | 127,117 | 155,085 | 140,737 | 155,309 | 146,156 | 24,735 | 24,295 |
| Prizes as % of sales | 48% | 49% | 50% | 51% | 50% | 50% | 54% | 54% |
| Net video lottery receipts | 127,754 | 133,067 | 118,249 | 124,659 | 126,316 | 130,114 | 23,500 | 23,257 |
| Entertainment center revenue | - | - | - | - | - | - | 22,625 | 23,278 |
| Net Revenue | 265,043 | 260,184 | 273,334 | 265,396 | 281,625 | 276,270 | 70,860 | 70,830 |
| Direct Expenses | 47,109 | 47,159 | 56,406 | 55,316 | 47,142 | 46,354 | 10,642 | 10,349 |
| Gross Profit | 217,934 | 213,025 | 216,928 | 210,080 | 234,483 | 229,916 | 60,218 | 60,481 |
| Gross profit as % of net revenue | 82% | 82% | 79% | 79% | 83% | 83% | 85% | 85% |
| Operating and administrative expenses | 36,625 | 36,262 | 36,648 | 35,945 | 39,713 | 39,770 | 24,775 | 24,534 |
| Operating expenses as % of net revenue | 14% | 14% | 13% | 14% | 14% | 14% | 35% | 35% |
| Capital-related costs | 7,460 | 7,354 | 6,984 | 7,839 | 9,587 | 9,381 | 3,656 | 3,472 |
| Other expenses and distributions | 19,219 | 18,203 | 20,193 | 18,994 | 20,128 | 19,111 | 5,849 | 5,630 |
| Net profit | 154,630 | 151,206 | 153,104 | 147,302 | 165,056 | 161,654 | 25,939 | 26,845 |
| Net profits as % of net revenue | 58% | 58% | 56% | 56% | 59% | 59% | 37% | 38% |
| Number of lottery retail terminals | 817 | 834 | 821 | 843 | 963 | 968 | 147 | 148 |
| Number of video lottery terminals | 1,670 | 1,749 | 1,679 | 1,771 | 1,9231 | 1,9691 | 302 | 302 |
| Profit distribution per capita2 | $222 | $222 | $337 | $329 | $186 | $185 | $178 | $190 |
1 Does not include First Nations sites
2 Includes Atlantic Canadians aged 19+ only
* Provincial Net Profit is based on Atlantic Lottery's non-consolidated financial statements
* Figures are rounded
Financial Highlights – Corporate Net Profit($ in ‘000s)
| Corporate Net Profit * | |||||
| 2025 | 2024 | 2023 | 2022 | 2021 | |
| Net ticket sales | 472,419 | 438,304 | 415,970 | 392,355 | 330,754 |
| Prizes as % of sales | 49% | 51% | 51% | 53% | 54% |
| Net video lottery receipts | 395,819 | 411,098 | 405,935 | 343,890 | 292,828 |
| Entertainment center revenue | 22,625 | 23,278 | 21,996 | 17,609 | 12,021 |
| Net Revenue | 890,863 | 872,680 | 843,901 | 753,854 | 635,603 |
| Direct Expenses | 161,299 | 159,178 | 150,025 | 134,613 | 111,995 |
| Gross Profit | 729,564 | 713,502 | 693,876 | 619,241 | 523,608 |
| Gross profit as % of net revenue | 82% | 82% | 82% | 82% | 82% |
| Operating and administrative expenses | 137,672 | 136,420 | 119,639 | 104,275 | 101,328 |
| Capital-related costs | 27,596 | 27,789 | 25,491 | 26,091 | 31,065 |
| Other expenses and distributions | 65,527 | 62,265 | 56,497 | 50,734 | 44,671 |
| Net profit | 498,769 | 487,028 | 492,249 | 438,141 | 346,544 |
| Net profits as % of net revenue | 56% | 56% | 58% | 58% | 55% |
| Number of lottery retail terminals | 2,748 | 2,793 | 2,783 | 2,796 | 2,827 |
| Number of video lottery terminals | 5,574 | 5,791 | 5,8091 | 5,8481 | 5,9981 |
1 Does not include Nova Scotia First Nations sites
* Corporate Net Profit is based on Atlantic Lottery's consolidated financial statements
* Figures are rounded