March 12, 2025
In its recent 2023-24 annual report, Atlantic Lottery reveals a year of strong performance, returning $487 million in profit to the four Atlantic provinces. The money supports vital services such as health care, infrastructure, and education. Beneath this success, however, lies a serious concern: unregulated online gambling continues to siphon hundreds of millions of dollars out of the region, sending it to offshore operators. Atlantic Lottery estimates that $200 million a year is lost to these unauthorized sites, but our estimates suggest the real figure may be much higher - closer to $530 million in net gaming revenue lost - that's more than double the ALC estimate. In other words, over half a billion dollars may be leaving Atlantic Canada annually, completely untaxed and beyond the reach of local regulations.
Meanwhile, Ontario's iGaming model demonstrates what a regulated system can accomplish. Since 2022, Ontario has enlisted dozens of licensed online sportsbooks and casinos under iGaming Ontario's umbrella, generating over three billion dollars in annual gaming revenue in 2024 alone. About 20 percent of that revenue returns to the province, while players benefit from age verification, responsible gambling tools, and dispute resolution protocols. Many of these same brands operating in Ontario, continue to provide their services to Atlantic Canadians through so-called "grey market" sites. If the Atlantic provinces partnered with iGaming Ontario, those same players would have the ability to move from offshore versions of these sites to regulated ones, creating a safer environment for consumers and allowing local governments to collect a substantial portion of the resulting revenue. What's a better solution: The status quo, or 20% of revenues and a better, safer environment for players?
By following the approach taken in Saskatchewan and Manitoba - where both provinces formed agreements with British Columbia's BCLC to launch co-branded PlayNow.com online platforms - Atlantic Canada could tap into iGaming Ontario’s existing network rather than build an entirely new system from scratch. This “plug-and-play” partnership could give residents immediate access to top gaming brands in a legal, supervised environment. It would also provide enhanced player-protection measures, including self-exclusion and other responsible gambling tools in iGaming Ontario's network. Best of all, if Atlantic Canada could receive most of Ontario's 20 percent revenue share, more than $105 million currently flowing offshore could be reclaimed each year for local priorities.
Critics might argue that regulated online gambling can invite new risks, but the unregulated options are already drawing players from the region, and have been doing so for over twenty years. Under a "grey market" status quo, there is no effective oversight or harm-reduction framework. Meanwhile, a regulated environment for online Canadian sports betting and casino play would impose age checks and transparency that simply do not exist in the offshore sphere. Technical hurdles are also lower than one might expect, given that iGaming Ontario already licenses the operators and sets the ground rules. The Atlantic provinces would simply extend that framework, much like Saskatchewan and Manitoba have done with BCLC and PlayNow.com.
Atlantic Lottery's latest annual report underscores the urgency of addressing competition from offshore gaming sites. What it does not fully capture is the size of the prize at stake. By taking advantage of a proven model that leverages Ontario's existing network, the Atlantic provinces could pull a nine-figure sum back into public coffers each year. The longer leaders allow the current situation to continue, the more money flows out of Atlantic Canada and the more Atlantic Canadians are left to play in murky, unprotected online spaces.
The real question is whether the Atlantic provinces will act on this opportunity, or continue to let what could be game-changing revenue vanish across borders. Given the benefits of regulated environments for player safety, consumer protection, and vital public funding, with U.S. President Trump's recent tariff threats, there may never be a better time for these four provinces to take a page out of Ontario’s playbook and protect both their players and their bottom line. In the end, Atlantic Lottery leadership thought that just $200 million was leaving its region every year to the "grey market", when that figure is probably much more than $500 million. Given this, gaining $105 million as a profit share from doing a deal to join iGaming Ontario should be pretty compelling.
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