New Brunswick Eyes Private Online Gambling in Major Shift

New Brunswick is eyeing the riches enjoyed by regulated provinces like Ontario and Alberta as it considers moving away from state-run online gambling.

Reports say New Brunswick is exploring options to end the Atlantic Lottery Corporation's monopoly and begin accepting private operators.

A loss in earnings is the main driver behind the shift. However, we are in the very early stages, and for now, a watch-and-wait policy could be the strategy.

Accepting overseas casinos and sportsbooks would end the Atlantic Lottery Corporation (ALC)’s hold on provincial gambling. The four Atlantic provincial governments jointly own it, and all profits fund public services.

ALC: $250 Million 'Leaves Atlantic Canada' Annually

The New Brunswick government is reportedly actioning an investigation into the viability of moving the province into a world of privatized online casinos and sportsbooks.

Other provinces, most notably Ontario, have also moved from a state-run framework to managing their own online gaming industries. New Brunswick will closely examine how Ontario, and more recently Alberta, did it.

A drop in lottery revenue and the rise in offshore gambling are the main drivers. In the corporation’s most recent annual report, ALC CEO Dallas McCready flagged some $250 million in betting activity on “illegal operators”. That, says McCready, could be money “funding roads, hospitals, schools and public services”.

New Brunswick could follow Quebec, whose secessionist Parti Québécois government supports liberalizing online gambling.

Atlantic Lottery Corporation: At a Glance 

• Founded in 1976 and based on other government lotteries in Canada
• Owned jointly by the four Atlantic provincial governments: New Brunswick, Nova Scotia, Prince Edward Island, and Newfoundland & Labrador
• Launched PlaySphere in 2004 for online lottery. It later rebranded as alc.ca, offering slots, poker, and table games
• The government-run Pro-Line offers online sports betting
• ALC profits dropped nearly $5 million year over year. Video Lottery Terminal (VLT) revenue also slumped due to the sluggish economy
• The ALC estimates that around $250 million is bet on “illegal” online gambling sites annually

VLTs Not Immune from Gambling Downturn

The Atlantic provinces have been hit by the economic slump, partly due to Canada’s trade war with the U.S.

Canadian PM Mark Carney has warned that the ongoing tariff war with the U.S. “will come at a cost” as both countries fail to thrash out a deal.

That has had a knock-on effect on gambling, especially in Video Lottery Terminals. The ALC cited reduced spending in bars and restaurants as a contributing factor. The ALC says the drop in VLT activity has drained $10 million from its finances.

New Brunswick permits a maximum of 2,000 VLTs, with approved VLT sites limited to 300.

Alberta, Ontario iGaming Growth Continues

Like Ontario, which regulated online gambling in 2022, and the recently liberalized Alberta, New Brunswick could offer a transitional period to move grey market sites over to the new framework.

Alberta officially opened up its state-run iGaming market to private operators in the summer. However, it began with a transition period, giving grey sites a three-month window to get licensed or exit. The transition period has now ended, leaving only regulated gambling sites.

New Brunswick will closely monitor Alberta and Ontario's more mature online gambling market.

iGaming Ontario doesn’t publish quarterly results, but it has a mature online gambling industry with dozens of the biggest operators. If New Brunswick can stem the exodus of public money to offshore sites, it may take the plunge.