New ALC CEO: We’re Losing $200 Million a Year to Illegal Operators

The newly appointed president and CEO of the Atlantic Lottery Corporation states that $200 million exits their area annually through gambling websites that are unauthorized in the Atlantic Canada provinces. 

Dallas McCready, who succeeded Patrick Daigle as head of the ALC after his retirement, is observing the actions of Manitoba Liquor & Lotteries (MBLL). A request for an injunction submitted on their behalf by the Canadian Lottery Coalition in a Manitoba court seeks to prohibit the illegal operator Bodog from operating in the province. 

Interestingly, Bodog has announced its closure of operations in Nova Scotia. 

ALC is collaboratively owned by the four Atlantic provincial governments of Canada – New Brunswick, Prince Edward Island, Nova Scotia, and Newfoundland and Labrador, which divide its profits. 

 

$200 Million Going Out the Door 

ALC is the sole platform that permits individuals in the region to engage in legal online gambling, while the grey market remains a persistent issue. Ontario initiated a private, competitive iGaming framework in 2022, becoming one of the largest iGaming markets in North America, while Alberta is anticipated to establish a similar market by 2025.

"[$200 million] is a significant amount of money that could be staying right here in our region to fund important public services but instead continues to be taken away from helping our communities to the sole benefit of these private operators,” McCready said. “That number is troubling and a growing concern for the people who live in our region. These illegal operators are motivated by profit and do not place the same priority on responsible gambling as Atlantic Lottery, nor do they return profits or pay taxes to Atlantic Canadian provinces.”

McCready, who served as ALC’s chief strategy officer prior to assuming his new position in January, stated they were “encouraged” by Bodog’s choice to halt operations in Nova Scotia, but mentioned there is much work that remains. 

 

Court Order Aiming at Grey Market Operators 

CLC Executive Director Will Hill stated that the court injunction targeting Bodog in Manitoba signals what’s ahead for unlawful operators in other provinces too. 

“[The provincial lotteries] must confront illegal online gambling operators, their unregulated sites, and sometimes deceptive advertising on a daily basis,” Hill stated. 

The lottery companies deemed it necessary to unite in order to reduce illegal online gambling in Canada. A hearing date for the case is scheduled for March 5. 

“It’s our intent to meet that goal to curtail illegal gambling through all available means,” Hill said. “This is just one of them.”

 

Uncertainty About Promotion 

CLC signifies a partnership between ALC, British Columbia Lottery Corporation, Loto Quebec, MBLL, and Lotteries & Gaming Saskatchewan. 

“This injunction is part of the Canadian Lottery Coalition’s ongoing efforts to both raise awareness and curtail the activities of gambling websites operating illegally within our respective jurisdictions,” McCready said. “Unlike Atlantic Lottery, these websites operate without federal or provincial regulatory oversight or Canadian anti-money laundering reporting obligations, nor can the provinces ensure the safety or security of sites they do not regulate.”

McCready mentioned that ALC will additionally focus on combating unlawful operators by executing a five-year strategic plan that he contributed to while in his former position. 

Misunderstanding regarding advertising remains a constant issue, as Atlantic Canadians still encounter ads from other provinces promoting gambling sites that are not legally accessible in their area, McCready stated. This gives a sense of authenticity to these operators and confuses the public regarding the legal aspects in this field, resulting in persistent uncertainty that ALC aims to resolve. 

5-Year Strategic Plan

“The strategic plan acts as a roadmap that will shape our plan for our products, services and operations during each year of that timeframe,” McCready said. “Our goal to take a strong and successful Atlantic Lottery to even greater heights. This goes beyond profits, as encouraging and supporting healthy play are at the core and are foundational to our organization.

“The plan highlights four strategic goals that define how Atlantic Lottery will realize that success, including player experience, betting and gaming market share, healthy play, and account-based play. There will be countless new products, features, and other projects that will help us meet these goals over the next five years, and we look forward to sharing them with our players.”

ALC: Striving to Engage Younger Generations 

In 2025, McCready stated that an important milestone is the upcoming launch of new lottery terminals at every retail site across Atlantic Canada. The latest generation of terminals will take the place of an older model and greatly enhance technical reliability for both retailers and players. They will provide additional advantages and choices for players, enhancing retail purchases and better blending the in-store and online experience. 

“It is essential that we ensure our products, especially our digital games, are competitive within the market,” McCready said. “We know we need to be able to meet – and hopefully exceed – players’ expectations if we want to be their preferred source for entertainment.”

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