The impact of gambling on the provincial budget

Introduction: Crown model and money for the provinces

In most provinces of Canada, lotteries and casinos are run by provincial state-owned companies (Crown corporations). Their net income is transferred to consolidated provincial revenues and funds programs and services. At the same time, there are share mechanisms for host municipalities and income sharing agreements with indigenous peoples. In Ontario, in addition to OLG, there is an open online market iGaming Ontario (iGO), but budget transfers still go through Crown structures and special agreements. Below are the key figures and revenue channels.

Who lists how much in recent years

BC (BCLC)

Net income за 2024/25 — CA$1. 408 billion, transferred to the provincial budget. Extra CA $86. 6 million were allocated by the province to 33 host municipalities (usually ~ 10% of the "net gambling income" from local sites).

Quebec (Loto-Québec)

At the end of 2024/25: revenue ~ CA $2. 993 billion, net income> CA $1. 5 billion - year-on-year growth; these funds are returned to the Quebec budget.

Ontario (OLG - Lotteries/Casino Crown Segment)

In 2023/24, OLG listed CA $2 provinces. 060 billion; OLG report separately emphasizes the nature of regular payments to the Consolidated Income Fund.

Atlantic Lottery (ALC)

In 2023/24, ALC returned $487 million to the budgets of four provinces of CA (a breakdown by province is published in the annual report).

Alberta (AGLC)

According to Annual Report 2023/24, the AGLC's total contribution to the General Revenue Fund is CA $2. 3 billion (taking into account the directions of gaming/liquor/cannabis; in the report, this is emphasized as a total transfer).

Host municipalities: their share of casinos

In addition to provincial budgets, host cities receive regular payments from gambling activities on their territory.

Ontario (OLG): the Municipality Contribution Agreement is in effect - a formula for the revenue of gaming halls: for example, 5.25% for the first CA $65 million in revenue from slots, 3% for the next block, 2.5% further, etc.; also ~ 4% of table-games and 4% of sportsbook (if applicable). Since 1994, cities have received almost CA $2. 5 billion to Q4 2024/25.

British Columbia (BCLC): 10% net gambling income from venues goes to Host Local Governments; for 2024/25 it is CA $86. 6 million for 33 municipalities.

Indigenous peoples: shares and agreements

British Columbia: a 25-year agreement has been in effect since 2020 - 7% of the province's net gambling revenues are distributed among First Nations communities (about CA $3 billion over the term of the agreement; the first two years - ~ CA $195 million).

Saskatchewan (SIGA): Non-profit operator SIGA distributes net income using a 50% formula - First Nations Trust, 25% - Community Development Corporations, 25% - provincial General Revenue Fund; 2023/24 and 2024/25 were record results.

How the online market affects budgets

Ontario (iGO): The online sector (private operators under AGCO/iGO) is growing rapidly - GGR 2024/25 - CA $3. 20 billion, of which ~ CA $2. 4 billion - casinos. This is not a direct transfer to the budget, but it is this growth that creates an indirect effect: tax revenues along the chain, employment, payments to municipalities from the land part and the stability of Crown sector income (lotteries/online OLG). To compare budget revenues, focus on the reports of Crown companies.

What money goes for: practical examples

Provincial budgets: general programs and services (health care, education, etc.) - through the transfer of net income to Crown companies. (The wording and purpose are enshrined in their annual reports/public accounts).

Host municipalities: infrastructure, sports/culture, local projects (OLG and BCLC publish quarterly/annual payout registers).

First Nations communities: long-term transfers for housing, infrastructure, education, health, economic development under the terms of agreements (BC - 7% net gaming revenues for 25 years).

Why the numbers differ between provinces

1. Different portfolio structure: shares of lotteries, land casinos, VLT/bingo and online segment.

2. Different payment models: somewhere more shares for municipalities/indigenous peoples, somewhere - direct transfer to the budget.

3. Online dynamics: in Ontario, the "open" model has strengthened the growth of the casino vertical, in other provinces, state operators conduct online. (Compare within the same methodology: net income → budget for Crown versus GGR for iGO.)

Links and Figures Short Guide (2023/24-2024/25)

BCLC: net income CA$1. 408 billion; CA$86. 6 million - to host municipalities.

Loto-Québec: revenue ~ CA $2. 993 billion, net income> CA $1. 5 billion

OLG (Ontario): Province payments CA $2. 060 billion (2023/24).

ALC: CA $487 million profit - to the budgets of the Atlantic (2023/24).

AGLC (Alberta): CA $2. 3 billion in the General Revenue Fund (cumulatively gaming/liquor/cannabis).

OLG to municipalities: payment formula (5. 25%/3%/2. 5% slots; 4% tables/sports), since 1994 ~ CA $2. 5 billion

BC First Nations: 7% net gaming revenues for 25 years (waiting ~ CA $3 billion).

SIGA (SK): distribution of net profit 50/25/25 (First Nations Trust/CDC/province).

The gambling sector gives provincial budgets significant stable revenues through Crown companies (BCLC, Loto-Québec, OLG, ALC, AGLC). The money reaches not only the provinces, but also host cities and indigenous communities under separate agreements. For a correct analysis, focus on the net profit of Crown operators and official transfers, and not on gross metrics (like GGR), and take into account local distribution formulas (municipal and Indigenous agreements). This multi-channel approach is key to understanding the real budget effect of gambling in Canada.