Atlantic Lottery
Annual Report 2025-2026
Celebrating 50 years of game-changing impact
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 per cent 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 reflect on a milestone year for Atlantic Lottery as we celebrate 50 years of serving the people and places of Atlantic Canada.
In 2025-26, Atlantic Lottery returned $492 million in profit to the four Atlantic provinces, generating substantial funding for essential public services such as health care, education and infrastructure. Despite a challenging environment marked by affordability pressures and unprecedented competition from illegal online gambling operators, Atlantic Lottery continued to deliver meaningful returns to the region and its communities.
The Board remains confident that Atlantic Lottery’s five-year strategic plan provides the right path to navigate these challenges and support the organization’s long-term sustainability. The past year marked the second year of the plan, with continued progress toward strengthening the player experience, modernizing technology, advancing healthy play and ensuring Atlantic Lottery is positioned to compete in a rapidly changing market.
Atlantic Lottery’s 50th anniversary is an opportunity to celebrate a remarkable legacy. Since 1976, the organization has returned nearly $13.4 billion in profit to the Atlantic provinces, awarded $13 billion in prizes and provided more than $4.6 billion in retailer commissions. Together, that represents a $31-billion impact over the past 50 years. On behalf of the Board, we look forward to building on this legacy and ensuring Atlantic Lottery continues to evolve and benefit Atlantic Canadians for generations to come.
Daniel M. Campbell, CFA
Chair, Board of Directors
CEO Message
It has been a privilege to complete my first full year as President and CEO of Atlantic Lottery, particularly as we celebrate 50 years of serving Atlantic Canadians.
In 2025-26, Atlantic Lottery continued to invest in the player experience, advance healthy play and strengthen the organization for the future. A key milestone was the launch of AL Rewards, which created new opportunities to engage and recognize players. We also made important progress in healthy play by achieving our balanced scorecard goal, expanding public event activations and earning Level 4 recertification under the World Lottery Association’s Responsible Gaming Framework. These accomplishments demonstrate our commitment to providing a legal, regulated and entertaining experience that puts players first.
We are operating in a period of significant affordability pressures, changing player expectations and unprecedented competition from illegal operators. Approximately $250 million leaves Atlantic Canada each year through these illegal operators – dollars that could otherwise remain in our region and help fund the roads, hospitals, schools and public services that Atlantic Lottery’s profit supports. Responding effectively requires us to work differently, improve efficiency and continue strengthening our products, technology and capabilities. It also requires a high-performing culture. By investing in our people and optimizing our talent, we are building an organization that can adapt, compete and deliver on our strategy.
As we celebrate our 50th anniversary, we are proud that Atlantic Lottery has returned nearly $13.4 billion to the four Atlantic provinces since 1976. Our home-field advantage comes from what sets us apart: our dedication to healthy play, our deep roots in Atlantic Canadian communities through local sponsorships, and the significant profits we return each year to support public services across the region. Thank you to our employees, players, retailers, shareholders and partners for helping us build on this legacy and prepare for the next 50 years.
Dallas McCready
President and CEO
Executive Summary
In 2025-26, Atlantic Lottery continued to make a game-changing impact across the region. We take pride in being the first choice for lottery and gaming while maximizing profits to the four Atlantic provinces. During the year, Atlantic Lottery returned $492 million to help support critical programs and services that directly benefit Atlantic Canadians. The overall net profit was $10.3 million under budget, which represents a decrease of $6.7 million from 2024-25.
Like other organizations across the retail and entertainment sectors, Atlantic Lottery is navigating affordability pressures and changing discretionary spending habits. In response, we have continued to evolve our products and player experiences through initiatives such as the launch of AL Rewards and Live Casino, enhanced personalization efforts, new video lottery machines, and ongoing investments to update and integrate the retail experience. The significant profit we return to the region continues to be balanced with Atlantic Lottery’s strong commitment to social responsibility and industry-leading healthy play activities.
Looking at our lines of business, Atlantic Lottery delivered $133.2 million from Retail Lottery, $225 million from Destination and Red Shores, and $133.8 million from iLottery in 2025-26. In addition to distributing profit to the four Atlantic provincial governments, we remitted $63 million in taxes and federal contributions.
The Retail Lottery line of business declined by $6.4 million, or 4.6 per cent, compared to the prior year. This decrease reflects less favourable national jackpot levels and ongoing changes in player behaviour. The retail landscape continues to evolve, with more players choosing self-serve options and shifting to digital channels. In response, Atlantic Lottery continues to focus on modernizing the gaming experience and leveraging new technologies to support both players and retailers. To help alleviate operational pressures, a full fleet of new retail lottery terminals was successfully deployed during the year.
The Destination line of business experienced a decline in profit of $19 million, representing a 7.9 per cent decrease compared with 2024-25. This segment continues to face challenges related to broader economic conditions affecting players, as well as an industry-wide shift from traditional in-person gaming experiences to online platforms, where competition and player choice continue to expand.
The iLottery line of business continued its strong growth, with profits increasing by $17.9 million, or 15.4 per cent, over the previous year. Atlantic Lottery has strengthened our focus on innovation and competitiveness, including the launch of a new rewards program, efforts to close the gap with illegal gaming operators, and enhancements designed to improve the overall player experience. As a result, we have increased Atlantic Lottery’s market share of total online betting and gaming activity in the region to 35 per cent, up from 34 per cent in 2024-25.
Red Shores delivered a profit of $3.3 million in 2025-26, representing an increase of $845,000, or 33.8 per cent, over the prior year. The strong results were driven by Red Shores’ renovations, with various phases completed throughout the year.
In 2026, Atlantic Lottery celebrates our 50th anniversary. We are proud to continue providing Atlantic Canadians with a healthy and regulated gaming option.
Since our inception in 1976, Atlantic Lottery has returned nearly $13.4 billion in profit back to the four Atlantic provinces, $13 billion in prizes to players and over $4.6 billion to retailers.
Profit by Province (in millions)
New Brunswick
Newfoundland and Labrador
Nova Scotia
Prince Edward Island
Community
Impact
Report
Atlantic Lottery is proud to celebrate 50 years of making a game-changing difference for the people and places of Atlantic Canada in 2026. Since 1976, everything we do and every dollar of profit we make has stayed right here, helping support the people that call this region home. We are proudly from here, for here.
Lottery profits are not ours; they belong to our provinces. That’s why 100 per cent of our profit is returned to Atlantic Canadian communities, helping fund important services such as health care, education and infrastructure. Our contribution extends even further, as our operations help support over 7,500 jobs and generate nearly $2 billion in economic activity across Atlantic Canada each year. Our employees are also active volunteers, and we support grassroots initiatives that create meaningful cultural, social and economic impacts across the region.
Atlantic Lottery continues to respond to the challenge of illegal gambling sites targeting Atlantic Canadians by providing an engaging player experience while maintaining a strong commitment to healthy play. We work to raise awareness that these sites aren’t licensed or regulated to operate legally in our region. Many Atlantic Canadians don’t realize that approximately $250 million leaves the regional economy each year through illegal operators rather than being reinvested in our communities.
In 2025-26, we continued to focus on our social impact by supporting causes and community initiatives that reflect our values. We also explored new ways to enhance our healthy play practices and help ensure our products are enjoyed for fun and entertainment. We want our players to understand how the games work, make informed decisions about how much time and money they spend, and play within their limits.
The following pages highlight our progress over the past year. As we celebrate our 50th anniversary, we also look ahead to how Atlantic Lottery can continue to evolve and support Atlantic Canadians for the next 50 years. We are committed to continuing to create lasting value for our players, our communities and the region we proudly call home.
Regional Support
Atlantic Lottery proudly supports community initiatives that make a meaningful difference across Atlantic Canada. In 2025-26, we partnered with a diverse range of cultural celebrations, festivals, charitable programs and wellness efforts that reflect the vibrancy and diversity of Atlantic Canada.
Through our Sponsorship Program, we support more than 100 community initiatives each year that celebrate local culture and heritage, promote wellness, and contribute to community and economic development. In 2025-26, this support reached communities throughout the region, helping to strengthen local pride, encourage tourism and foster inclusion.
Initiatives supported throughout the year included:
- NB Afrofest, Festival du Homard de Shediac and the Charlotte County Fall Fair in New Brunswick;
- Gros Morne Theatre Festival, Labrador Straits Bakeapple Folk Festival and Crystal Carnival in Newfoundland and Labrador;
- Chamber Forward: Resources & Networking for Growth, Devour! The Food and Film Fest and the Nova Scotia Lobster Crawl in Nova Scotia; and
- PEI Community Impact Summit, Somerset Festival and Polar Pride Fest ’26 in Prince Edward Island.
Last summer, the Atlantic Lottery Tattoo Parlour travelled to several events across the region. This engaging experience provided a fun way to connect with Atlantic Canadians by offering locally themed temporary tattoo designs.
We also continued to support charitable initiatives, including United Way campaigns and events. Employees participated in United Way’s Day of Caring and contributed through payroll deductions, reinforcing our shared commitment to supporting the communities where we live and work.
Atlantic Lottery further encourages employees to volunteer by providing paid volunteer hours. This gives employees time to support causes that matter to them while advancing our purpose of making a game-changing impact across Atlantic Canada.
Our Commitment
to Healthy Play
Healthy play is fundamental to Atlantic Lottery’s purpose and to the trust we have built with players and communities across the region. It is not a stand-alone program or a single set of tools. It is reflected in how we design products, communicate with players, train employees and retailers, and create safer playing environments.
Our Healthy Play Program helps players make informed decisions by educating, informing and supporting them through tools and communications. We build and connect our understanding of players to continuously improve our approach and ensure we meet the evolving needs of Atlantic Canadians. Healthy Play considerations are integrated throughout the player experience, including our products, marketing and player environments. Together, these efforts help players understand how games work, set limits that reflect their personal game plan, monitor their activity and take a break when needed.
This approach supports both player well-being and the long-term sustainability of our business. When players have the right information, tools and support, they are better equipped to keep their play positive.
Healthy Play Tools and Safeguards
On alc.ca:
- Age and identity verification
- Mandatory weekly deposit limits
- Voluntary limits, like daily wager and session time limits
- Pop-up reminders for time spent on alc.ca
- Play and transaction history
- Short-term and long-term break in play options
- Personalized PlayWise Ratings based on their play
At retail locations:
- Mandatory healthy play and age-verification training
- ID checks and a mystery shopper program
- Age-of-majority controls on self-serve terminals
- PlayWise information and support materials
- Game information to help players understand how products work
At video lottery locations:
- Clocks displayed on terminals
- Funds shown as cash rather than credits
- Gambling support information on every terminal
- Pop-up break reminders
- PlayWise information available on site
- Healthy play training for operators and retailers
At Red Shores:
- PlayWise Hub and PlayWise Advisors
- Referrals to community support organizations
- Player account statements and limit-setting options for Rewards Club members (Charlottetown only)
- Healthy play training for employees
- Short-term and long-term break in play options
Setting a High Standard for Healthy Play
Atlantic Lottery continued to strengthen its Healthy Play Program in 2025-26, achieving important milestones in player participation, program quality and industry recognition. PlayWise is the umbrella brand for our healthy play initiatives, bringing together resources, education and support in one easy-to-find place.
More than 27.5 per cent of online players set at least one discretionary healthy play limit, allowing Atlantic Lottery to achieve its balanced scorecard target. This level of participation is more than twice the industry standard and is in addition to the mandatory tools and limits already built into the online playing experience.
This achievement reflects Atlantic Lottery’s proactive approach. Rather than simply making tools available, we reward players for setting their limits and considering how their play fits within their personal entertainment budget.
Recognized Among the World’s Leading Responsible Gambling Programs
In January 2026, Atlantic Lottery was recertified at Level 4 under the World Lottery Association’s Responsible Gaming Framework. Atlantic Lottery has maintained this highest level of certification since 2010.
The independent assessment recognized the strength and maturity of a program embedded across the business, including:
- game design and product development;
- marketing and advertising standards;
- player education and tools;
- retail and online environments;
- research, reporting and measurement; and
- evidence-based decision-making and continuous improvement.
Maintaining Level 4 certification reinforces an important principle: healthy play is not an addition to our business, but rather an essential part of how Atlantic Lottery operates.
AL Rewards Puts Learning into Action
Atlantic Lottery launched AL Rewards, the first program of its kind among Canadian lotteries. In addition to earning points through eligible purchases and activities, members can receive offers and earn contest entries by completing healthy play-themed videos and quizzes. New healthy play content is added regularly to consistently help strengthen positive play beliefs and encourage informed choices among Atlantic Canadians.
The program gives Atlantic Lottery new opportunities to provide personalized, targeted healthy play information while making learning more engaging for players.
Starting Conversations with Young People
Through Diamond Decisions, Atlantic Lottery partnered with the Responsible Gambling Council to raise awareness and provide education about responsible gambling among youth. The interactive experience was presented at the 2025 Canada Games in St. John’s, N.L.
Through a virtual reality, baseball-themed game, participants explored the risks associated with video gaming, gambling and sports betting. The activity focused on the “illusion of control” – the mistaken belief that knowledge or skill can influence outcomes determined by chance – and covered four key areas: gambling and gaming myths, warning signs, available supports and tips for keeping play healthy.
The experience was designed for youth, young adults, parents and coaches. While Atlantic Lottery products remain strictly for adults aged 19 and older, introducing these concepts early provides an opportunity to build awareness and encourage informed decision making, with the goal of helping to prevent gambling harms before they develop.
Making Healthy Play Memorable at Sommo
Atlantic Lottery brought healthy play education to the Sommo Festival in Cavendish, P.E.I., through the Atlantic Lottery Tattoo Parlour. The activation was designed to reach young adults, who are among the fastest-growing groups using online gambling platforms and tend to have lower gambling literacy than older age groups.
Participants could spin a wheel for a chance to receive either a limited-edition Atlantic Canadian-themed temporary tattoo designed by regional artists like Sharky Jones or an “ink spill” design instead. Those who preferred more certainty could choose their own tattoo. By illustrating the difference between chance and control, the experience encouraged participants to reflect on the unpredictability of gambling outcomes and the importance of making informed choices.
Interactive Experiences for Video Lottery Players
The Healthy Play team visited Coasters locations across New Brunswick to bring informed play messages directly to players. Through face-to-face conversations and interactive, activation-style games, players explored concepts such as the unpredictability of gaming outcomes, the illusion of being “due” for a win and how games are designed to encourage continued play.
These hands-on experiences helped translate complex concepts into clear, memorable information, leading to discussions that helped players better understand how video lottery games work. This was an opportunity to reinforce that play should always be for entertainment and to improve awareness of healthy play resources.
Enhanced Healthy Play Initiatives at Red Shores
The newly renovated PlayWise Hub at Red Shores Charlottetown provides a welcoming space where guests can learn more about healthy play, explore limit-setting options and access helpful resources. PlayWise Advisors are also available to answer questions, provide support and connect guests with additional information when needed.
The PlayWise team hosted 36 events with our guests across Red Shores Charlottetown and Summerside. These events included a mix of meet-and-greets with PlayWise Advisors and informational activities educating guests about how odds, games and harness racing work, plus tips for keeping play healthy.
Encouraging Players to Revisit Their Limits
Through the PlayWise Coffee Promotion, 500 eligible players had the chance to earn a $10 coffee shop gift card by updating a wager limit or session time limit on alc.ca. The initiative encouraged players to reflect on their play and revisit their settings, using the everyday concept of a coffee break to reinforce the importance of taking breaks from play.
The Set It to Get It Promotion encouraged eligible alc.ca players to set a daily wager limit or session time limit for the opportunity to earn a $5 alc.ca bonus. The initiative helped bring greater attention to voluntary healthy play tools and encouraged players to make proactive decisions about the time and money they spend.
Continuing Our ESG Progress
Atlantic Lottery’s environmental, social and governance (ESG) work supports our strategy and social purpose: making a game-changing impact for the people and places of Atlantic Canada.
Creating that impact is a shared responsibility across the organization. Employees are encouraged to integrate social responsibility into their daily decisions, consider how new projects and initiatives align with our social purpose and contribute to ESG priorities through actions such as volunteering, completing training and supporting healthy play messaging.
Our ESG framework guides this work across five focus areas:
- Climate
- Healthy Play
- Community Impact
- Inclusion, Diversity, Equity and Accessibility (IDEA)
- Data Security and Privacy
Reducing our Environmental Impact
Following a successful pilot, Atlantic Lottery expanded the use of hybrid vehicles within our corporate fleet. We will continue to prioritize lower-emission options where practical as part of our ongoing vehicle replacement and fleet-management process.
The rollout of new Wave 8 lottery terminals at retail locations also allowed Atlantic Lottery to reduce the size of draw-game tickets.
Improving Digital Accessibility
Atlantic Lottery continued to improve the accessibility of alc.ca, guided by the internationally recognized Web Content Accessibility Guidelines.
We use monitoring tools, automated testing and manual reviews to identify and address barriers across alc.ca. Accessibility remains an important part of our digital roadmap, with ongoing efforts to enhance practices, expand testing capabilities and embed accessibility earlier in design and development. This work will support continued improvements across our web and mobile experiences, creating more inclusive digital products for everyone.
Embedding Social Responsibility Across the Business
Our ESG journey is reflected in work taking place throughout Atlantic Lottery, from healthy play and community investment to diversity and inclusion, environmental improvements and strong protections for player and employee information. We are continuously working to incorporate these considerations across all of our business decision-making as part of Atlantic Lottery’s commitment to social responsibility.
Inclusion, Diversity, Equity & Accessibility (IDEA)
In 2025-26, Atlantic Lottery continued to build a workplace where inclusion is reflected not only in what we say, but in how we learn, connect, lead and give back. Across training, employee-led groups, accessibility conversations and volunteer efforts, employees helped strengthen a culture built on a foundation of trust and respect where more people feel seen, supported and able to contribute.
Learning That Builds Understanding
Learning remained an important way for employees to deepen their understanding and build more inclusive habits. In September, Atlantic Lottery hosted an event ahead of the National Day for Truth and Reconciliation with guest presenter Kyana Kingbird, focused on Indigenous culture and pow wows. The session created space for reflection, learning and cultural awareness, with more than 150 employees participating in person and online.
Advancing Neuroinclusion
Atlantic Lottery marked Neurodiversity Celebration Week with a practical virtual session on The 6 Principles for Inclusion. Held in March, the session explored six simple principles – Communication, Connection, Emotion, Flexibility, Structure and Environment – and offered strategies employees can use to support neurodivergent colleagues and strengthen inclusion across their teams.
Participants explored:
- What neurodiversity and neuroinclusion mean
- Common workplace barriers neurodivergent employees may experience
- Easy, everyday ways to make our workplace more inclusive
The session connected employees with practical tools and a shared language for creating more neuroinclusive workplaces. More than 120 employees joined the virtual session, reflecting a strong interest in learning how everyday actions can make our workplace more inclusive.
Celebrating Pride and Community Connection
Pride participation continued to create opportunities for employees to show support, celebrate community and strengthen visibility for inclusion across Atlantic Canada.
Expanding IDEA
The work to expand IDEA continued within Atlantic Lottery's Red Shores operations, beginning with a listening session designed to introduce the IDEA Council concept and open meaningful conversations about inclusion, diversity, equity and accessibility.
In Charlottetown, the team began recruitment, drafted terms of reference and started identifying potential focus areas – important early steps toward building a council model that reflects the voices and experiences of employees at Red Shores. The rollout of the Council is planned for 2026-27.
Building Belonging Through Affinity Groups
Employee-led affinity groups continued to help colleagues build connections, share experiences, and create space for learning and belonging. More than 100 employees are currently engaged across these groups, and they continue to value the informal, connection-based structure that supports learning, dialogue and community.
Together, these groups recognize that employees bring many identities, interests and lived experiences to work, and that belonging grows when people have space to connect beyond their day-to-day roles. Examples include the Senior Support Network, Women Inspiring Women, Pride@AL and the Indo-Canadian Affinity Group, among others.
Measuring Inclusion
Our IDEA ambition remains clear: We encourage inclusion to thrive by reflecting the diversity of Atlantic Canada in our workforce, our products and our operations. As part of our ongoing commitment to accountability, we measure inclusion on our employee engagement survey.
Giving Back Through Volunteerism
The Atlantic Lottery team continued to show the power of giving back, with more than 200 employees volunteering approximately 2,000 work hours in support of their communities in 2025-26.
Our Employee Volunteer Program supports employees’ passion for making a positive impact while aligning with our purpose-driven mission. By providing designated paid time off for volunteering, the program helps employees contribute to causes that matter to them and to the communities we serve.
“Being part of the IDEA Council has been one of the most rewarding parts of my year. Participating in our affinity groups and the neurodiversity training has highlighted how committed our organization is to fostering a genuinely inclusive environment. These programs give us the tools and the community needed to ensure that diversity, equity and inclusion aren't just concepts, but active practices we bring to our daily work and volunteer efforts.”
50 years of impact
We are proud that 91 cents of every lottery dollar in 2025-26 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.
Since 1976, more than $31 billion has been returned through profit to provinces, prizes to players and commissions to Atlantic Canadian retailers.
Where the Money Goes:
91 Cents of Every Dollar Stays Here
We returned $492 million in profit to the four Atlantic provinces in 2025-26, helping to fund critical services, including health care, education and infrastructure. Since 1976, we have returned nearly $13.4 billion to help fund these important services.
We recognized $455.7 million in prizes to winners across Atlantic Canada. Since the creation of Atlantic Lottery, we have awarded $13 billion in prizes.
Retailers received over $115.6 million in commissions in 2025-26. Our network of independent partners includes more than 3,400 Atlantic Canadian businesses that earn income from the sale of Atlantic Lottery products and help create employment in our communities. We have returned more than $4.6 billion to retailers since Atlantic Lottery’s inception.
Atlantic Lottery is a significant driver of economic development. Our operations indirectly contributed to more than 7,500 jobs and just under $2 billion in economic activity across the region in 2025-26.
Atlantic Lottery employs more than 700 people in all four Atlantic provinces, 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.
Breaking Down the Lottery Dollar
Atlantic Canada
Atlantic Canada
Atlantic Canada
Atlantic Canada
Atlantic Canada
- 36¢Profit back to
Atlantic Canada - 34¢Winners in
Atlantic Canada - 9¢Retailers in
Atlantic Canada - 8¢Operations in
Atlantic Canada - 4¢Salaries and Benefits
- 4¢Operations Outside
Atlantic Canada - 5¢Taxes
Winners
In 2025-26, 1,612 prizes of $10,000 or more were paid out to Atlantic Canadians. That’s an increase from 1,343 major winners the previous year.
Major wins ($10,000 or more)
by province
568New Brunswick
478Newfoundland
and Labrador
528Nova Scotia
38Prince
Edward Island
Financial Position Overview
Balanced Scorecard
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 & Gaming Gross Gaming RevenueRevenue from iCasino, iBingo and online Sports betting after prizes paid to players, sales discounts and free plays are deducted | $144.8M | $140.2M | |
| Core Gross Gaming RevenueRevenue from all other products after prizes paid to players, sales discounts and free plays are deducted | $744.8M | $793.1M | |
| Net ProfitAfter-tax profit returned to Atlantic Lottery’s shareholders | $492M | $502.4M | |
| Player | |||
| Engaged PlayersNumber of unique, verified account logins to alc.ca or the mobile app over the past 12 months | 408,350 | 424,769 | |
| Healthy Play Tool UsersNumber of unique, active online players with at least one discretionary healthy play limit | 93,175 | 92,555 | |
| Operational | |||
| Operational EfficiencySavings achieved through net cost savings, time savings and cost avoidance | $6.6M | $3.5M | |
| Brand Reputation ScoreComprehensive survey-based score measuring Atlantic Canadians’ perception of Atlantic Lottery based on 24 attributes | 41 | 43 | |
| Learning and Growth | |||
| Employee EngagementSurvey score measuring employees’ connection to and experience with Atlantic Lottery | 79.5% | 76% | |
Financial Position Overview
The following provides an overview of the financial position of Atlantic Lottery for the year ended March 31, 2026. It is to be read in conjunction with the associated audited consolidated financial statements and note disclosures, which have been prepared in accordance with International Financial Reporting Standards (IFRS). Refer to notes 1, 2 and 3 in the Consolidated Financial Statements for additional information on Atlantic Lottery’s operations, basis of presentation and relevant accounting policies.
Atlantic Lottery remains committed to prioritizing the needs, preferences and satisfaction of our players across all business areas, while fostering a healthy and sustainable player base as the region’s only legal, regulated and Atlantic Canadian-owned operator. As reflected in the 2025-26 balance sheet performance, Atlantic Lottery continues to invest in our assets and maintain a healthy pension plan to support past, present and future employees. Given the regular distribution to shareholders, we continue to maintain strong cash flow, as detailed in the Statement of Cash Flows.
During 2025-26, Atlantic Lottery focused on strategic capital deployment to expand and improve product offerings, reinforcing our position in a highly competitive industry. Investment decisions were guided by established priorities and a commitment to sound financial stewardship.
The increase in assets is primarily attributable to employee future pension benefits, reflecting the results of the annual pension valuation, including higher interest income and improved returns on plan assets. Property and equipment also increased due to continued investment in capital assets, particularly video lottery terminals.
The increase in liabilities and shareholders’ equity can be attributed to several factors. Retained earnings rose significantly due to the annual pension valuation, which generated higher other comprehensive income from pension plan remeasurements. Long-term debt also increased following the establishment of a new debt facility in August 2025 to finance assets acquired in prior years.
Accounts payable and accrued liabilities increased year over year, primarily due to the timing of operational and capital expenditures, as well as higher lottery payable balances associated with increased play through alc.ca.
These increases were partially offset by a reduction in the line of credit and short-term financing, as the new debt facility shifted funding from short-term instruments to long-term debt. The line of credit and short-term financing facilities are used to support short-term operational requirements and capital asset acquisitions. To optimize borrowing costs, we utilize seven-day CORRA-based loans as part of our short-term financing strategy.
- 2025-26
- $463,298
- 2024-25
- $380,979
- Variance ($)
- $82,319
- Variance (%)
- 22%
- 2025-26
- $283,410
- 2024-25
- $247,959
- Variance ($)
- $35,451
- Variance (%)
- 14%
- 2025-26
- $179,888
- 2024-25
- $133,020
- Variance ($)
- $46,868
- Variance (%)
- 35%
| Consolidated Balance Sheet (Thousands of Dollars) | ||||
|---|---|---|---|---|
| 2025-26 | 2024-25 | Variance | ||
| $ | % | |||
| Total Assets | $463,298 | $380,979 | $82,319 | 22% |
| Total Liabilities | $283,410 | $247,959 | $35,451 | 14% |
| Total Shareholders’ Equity | $179,888 | $133,020 | $46,868 | 35% |
Change in Assets (thousands of dollars)
Change in Liabilities and Shareholders’ Equity (thousands of dollars)
Revenue consists of gross sales less consideration paid to the player (prize expense). The year-over-year decrease in revenue of $1.3 million or 0.1 per cent reflects declines across a few traditional product categories, partially offset by strong growth in digital products. Destination revenue decreased by $20.4 million, primarily due to economic pressures and the continued shift toward online gaming platforms. Retail Lottery revenue declined by $10.4 million, driven by less favourable jackpots and evolving dynamics in retail environments. These decreases were partially offset by strong iLottery performance, which generated a $27.9 million increase in revenue, reflecting ongoing player migration to online channels and continued investment in the digital platform.
Direct expenses increased by $881,000 or 0.5 per cent in 2025-26. This increase was primarily driven by a $5.7-million rise in other direct costs, reflecting higher revenue share costs and service fees associated with the online gaming platform as sales volumes grew. Retailer commissions decreased by $5.2 million year over year, reflecting lower revenues in products such as video lottery.
Operating and other expenses rose by $4.5 million, an increase of two per cent from the prior year. This growth reflects continued investment in technology, workforce capabilities and marketing initiatives to enhance operational efficiency and help promote our products.
| Consolidated Statement of Operations (Thousands of Dollars) | |||
|---|---|---|---|
| 2025-26 | 2024-25 | Variance | |
| Revenue | $889,603 | $890,863 | $(1,260) |
| Direct Expenses | $162,180 | $161,299 | $881 |
| Gross Profit | $727,423 | $729,564 | $(2,141) |
| Operating & Other Expenses | $235,309 | $230,795 | $4,514 |
| Net Profit | $492,114* | $498,769* | $(6,655) |
| Gross Profit % Revenue | 81.8% | 81.9% | -0.1% |
| Operating Expenses % Revenue | 26.5% | 25.9% | 0.5% |
| Net Profit % Revenue | 55.3% | 56.0% | -0.7% |
*Consolidated Net Profit includes gain from subsidiary of $0.1M
Profit by Province (in millions)
New Brunswick
Newfoundland and Labrador
Nova Scotia
Prince Edward Island
Profit by Line of Business (in millions)
Retail Lottery
Destination & Red Shores
iLottery
Financial Position Overview
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 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 $541.4 million generated in cash flow from regular business activities.
Investing activities represent the amount spent on property, equipment and intangible assets. During 2025-26, Atlantic Lottery purchased several capital assets that were required for the success of the long-term strategy. Significant investment areas included the purchase of the new video lottery terminals, the Red Shores expansion and operational technology hardware.
Financing activities reflect cash inflows and outflows relating to debt. Total financing activities amounted to $12 million, driven by new long-term debt in August 2025, and offset by repayments of long-term debt principal on the four outstanding loans, short-term financing requirements and interest payments.
Overall, the net change for cash in 2025-26 is an increase of $3.5 million. Cash flows remain very positive, with liquidity risk managed through ongoing forecasting and assessment of cash flow requirements.
Special guest Vanna White joined the Anniversary Classic broadcast as Atlantic Lottery celebrated 15 years of proudly serving Atlantic Canadians.
| Consolidated Statement of Cash Flows (Thousands of Dollars) | ||
|---|---|---|
| 2025-26 | 2024-25 | |
| Operating Activities | 541,442 | 534,092 |
| Investing Activities | (61,135) | (49,653) |
| Financing Activities | 12,029 | 20,424 |
| Distribution to Shareholders | (488,795) | (505,064) |
| Change in Cash Balance | 3,541 | (201) |
| Opening Cash Balance | 11,718 | 11,919 |
| Closing Cash Balance | 15,259 | 11,718 |
Cash flows presented using the indirect method.
Business Overview
Draw Games
The Draws category delivered net revenue of $164.9 million in 2025-26, a decrease of $9.9 million or 5.7 per cent from the previous year.
Lotto 6/49 net revenue finished the year at $36.7 million, a decrease of $1.7 million compared with 2024-25. Two factors contributed to the year-over-year decline. Lotto 6/49 experienced an unfavourable roll pattern compared with the previous year, with six fewer jackpots of $40 million or more and only one event at $60 million. Lower sales per jackpot compared with the previous year also impacted sales. This decline was seen across all jackpot levels. Sales finished flat to comparable draw averages.
In 2025-26, Lotto Max’s net revenue reached $61.7 million, a $3.8-million decrease from 2024-25. The lower net revenue was driven by Lotto Max’s less favourable roll pattern, offsetting sales per jackpot decline. When the Lotto Max jackpot reaches $50 million, additional $1 million MaxMillion draws are offered. In 2025-26, Lotto Max offered MaxMillions significantly less frequently, with 43 MaxMillions events compared to 56 in 2024-25. There were 16 jackpots of $70 million or more, compared to 23 in the prior year.
Lotto Max also offered its national promotion, the Lotto Max Dream Big Contest, in 2025-26, giving players a second chance to win a variety of guaranteed cash prizes, with 30 weekly guaranteed $10,000 prizes and one grand prize draw of $1 million. During the contest period, 39 per cent of Lotto Max tickets were entered from 895,000 players, resulting in an increase on net sales of 3.1 per cent.
Draw Games Net Revenue (rounded in millions)
| 2025-26 Budget | $39.6M | $61.5M | $4.5M | $11.6M | $25.2M | $11.6M | $15.3M | |
|---|---|---|---|---|---|---|---|---|
| 2025-26 Actual | $36.7M | $61.7M | $4.9M | $11.0M | $24.7M | $11.6M | $14.3M | |
| 2024-25 Actual | $38.4M | $65.5M | $5.2M | $13.1M | $26.7M | $11.5M | $14.5M |
Instant Games
Scratch’N Win net revenue was $82.9 million in 2025-26, a decrease of $3 million or 3.5 per cent compared to the previous year. The year-over-year decline was primarily due to the performance of the Scratch, Watch, Spin brand, which declined by $2.2 million. This was largely attributed to reduced sales of $5 MEGA 360 tickets, which benefited from its first full year in market in 2024-25, generating strong revenue that set a high comparison baseline. In addition, the $10 MEGA 360 tickets launched later than anticipated, in February of 2026, which was too late in the fiscal year to close the net revenue gap for the brand.
Several other brands experienced modest declines in net revenue. Crossword generated $21.4 million, down $182,000, primarily due to weaker performance at lower price points. Set for Life achieved $7 million, a $532,000 decrease; Bingo achieved $4.1 million, down by $51,000; and Variety Extended Play reached $5.7 million, representing a $275,000 decline from the previous year. Conversely, a few brands saw slight improvements. National Quick Play achieved $15.2 million, an increase of $93,000 and Variety Quick Play generated $21.5 million, exceeding the previous year’s results by $161,000.
Breakopen net revenue reached $40 million in 2025-26, an increase of $1.3 million, or 3.4 per cent, compared with 2024-25. Growth was driven by strong performance among the $1 Variety games, supported by several new game launches. This growth was partially offset by lower revenue from the $1 Flaming 7s and $0.50 games, as increased demand for the $1 Variety games shifted play away from these products. The $1 Variety games generated nearly 42 per cent of total Breakopen net revenue, while the $1 Flaming 7s accounted for 27 per cent, and the $0.50 games contributed 31 per cent.
Scratch’N Win Net Revenue (rounded in millions)
Breakopen Net Revenue (rounded in millions)
iGames
Net revenue from iGames reached $191.1 million in 2025-26, an increase of $28.8 million or 17.8 per cent compared with 2024-25. Casino continued to perform strongly, supported by expanded game launches and a growing player base. Approximately 143 game titles were introduced during the year, while the number of active users increased by 45,000. Table games recorded modest year-over-year growth, with the launch of three new game titles, while strategic focus shifted toward the launch of Live Casino.
Performance in other areas was more mixed. Digital Instants had a slower start to the year, driven by fewer game launches and continued shifts in player spending toward Casino products. iBingo revenue declined year over year, reflecting reduced marketing activity and ongoing platform challenges.
Live Casino launched in Nova Scotia and Newfoundland and Labrador in December, later than originally planned. The delayed rollout contributed to underperformance, which was further impacted by lower wagering limits and the product’s exclusion from Atlantic Lottery’s rewards programs.
iGames Net Revenue (rounded in millions)
| 2025-26 Budget | $55.1M | $2.5M | $116.2M | $3.6M | $10.4M | |
|---|---|---|---|---|---|---|
| 2025-26 Actual | $48.3M | $1.4M | $133.9M | $3.1M | $0.9M | |
| 2024-25 Actual | $54.3M | $1.8M | $100.2M | $3.0M | $0.0M |
Sports
In 2025-26, net revenue in the Sports category was $13.7 million, representing an increase of $500,000 or 4.1 per cent from 2024-25 results. Sports betting sales – the total dollar value of wagers placed – declined by 5.6 per cent year over year, driven by a 10 per cent decrease in active players. This marked PRO•LINE’s first decline in 22 years since launching the product online. As a result, net gaming revenues fell short of the budget.
While Atlantic Lottery remains the only legal sports betting operator in Atlantic Canada, performance has been increasingly affected by an abundance of advertising from operators that cannot legally offer betting in the region and the use of virtual private networks (VPNs) to access regulated markets outside the region. These factors have been amplified since Ontario opened its market to private operators in 2022.
Atlantic Lottery has partnered with Kambi to replace its sports betting technology and modernize PRO•LINE’s products and features. The new platform is expected to launch in 2027 and support growth in both revenue and active players.
Sports Net Revenue (rounded in millions)
Video Lottery
Video lottery net revenue in 2025-26 was reported at $371.8 million, a decrease of $20 million or 5.1 per cent compared to the prior year. The 2025-26 performance was impacted by a 5.4 per cent decline in player activity compared to 2024-25. Broader economic conditions and changing player behaviours contributed to reduced spending on video lottery, with players spending less time playing, cashing out earlier and wagering lower amounts on average than in the previous year.
The year-over-year revenue decline was driven primarily by 35 retailer closures, which accounted for approximately 65 per cent of the decrease. All four Atlantic provinces recorded lower revenues than the previous fiscal year, contributing to the overall budget shortfall in 2025-26. As part of the ongoing evolution of our products, we are continuing to invest in this line of business to ensure operations are optimized in support of both players and retailers. Examples of this include the delivery of a new back-end central gaming system, new terminal models and modernizing the in-venue gaming experience.
Video Lottery Net Revenue by Province (rounded in millions)
| 2025-26 Budget | $132.5M | $121.9M | $124.3M | $24.6M | |
|---|---|---|---|---|---|
| 2025-26 Actual | $118.9M | $111.9M | $118.1M | $22.9M | |
| 2024-25 Actual | $127.9M | $118.4M | $121.9M | $23.5M |
Red Shores
Red Shores’ net revenue reached $24.1 million in 2025-26, an increase of $1.4 million or 6.3 per cent compared with the previous year.
Casino games revenue totaled $18.2 million in 2025-26, increasing $1.4 million or 8.1 per cent over the prior year. The positive results were driven by strong performance across all gaming categories. The phased completion of renovations increased capacity during peak periods and introduced new table games. Overall, gaming performance reflected continued customer engagement and remained the primary revenue driver for Red Shores.
Racing revenue held steady, increasing by $40,000 over the prior year. This was the result of strong live racing revenue up 28.6 per cent from 2024-25, driven by higher wagering activity at both Charlottetown Driving Park and Summerside Raceway. These gains were partially offset by lower simulcast revenue, down 18.4 per cent, driven by reduced wagering volumes in both traditional simulcast and HPIbet channels. Poor weather played a role, resulting in fewer race dates in key simulcast markets.
Food and beverage also remained similar to the previous year at $3.7 million in 2025-26. Strong performance in Charlottetown, driven by O’Brien’s Social Bar & Kitchen’s first full fiscal year of operations, resulted in revenues exceeding budget by 12 per cent. These gains were partially offset by lower revenue in Summerside following the discontinuation of food service operations at the West End Bar in October 2025 and the subsequent transition of the space to a third-party lease arrangement in May 2026.
Red Shores Net Revenue by Category (rounded in millions)
| 2025-26 Budget | $17.4M | $2.4M | $3.8M | |
|---|---|---|---|---|
| 2025-26 Actual | $18.2M | $2.2M | $3.7M | |
| 2024-25 Actual | $16.8M | $2.2M | $3.7M |
Financial Highlights – Provincial Net Profit ($ in ‘000s)
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)
1 Does not include Nova Scotia First Nation sites
* Corporate Net Profit is based on Atlantic Lottery’s consolidated financial statements
* Figures are rounded