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 region annually through gambling websites that are unlawful in the provinces of Atlantic Canada. 

Dallas McCready, who assumed the role of head of the ALC following Patrick Daigle's retirement, is monitoring the actions of Manitoba Liquor & Lotteries (MBLL). A Manitoba court received an injunction from the Canadian Lottery Coalition seeking to prevent illegal operator Bodog from operating in the province. 

Notably, Bodog had previously declared that it is ceasing operations in Nova Scotia. 

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

$200 Million Off the Books 

ALC is the sole platform that permits legal online gambling in the region, while the grey market continues to pose challenges. Ontario introduced a private, competitive iGaming framework in 2022 and has since become one of the biggest iGaming markets in North America, while Alberta is projected to establish a similar market in 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, formerly ALC's chief strategy officer before starting his new position in January, stated they were "encouraged" by Bodog's choice to halt operations in Nova Scotia, although he emphasizes there remains much work to accomplish. 

Court Order Aimed at Grey Market Participants 

CLC Executive Director Will Hill stated that the court injunction against Bodog in Manitoba indicates similar actions will follow for illegal operators in other provinces. 

“[The provincial lotteries] are forced on a daily basis to contend with illegal online gambling operators, their unregulated websites, and in some instances misleading advertising,” Hill said. 

The lottery organizations deemed it appropriate to unite in order to reduce unlawful online gambling in Canada. A hearing in the matter 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 Regarding Promotion 

CLC signifies a partnership among 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 noted that ALC will also focus on combating illegal operators by instituting a five-year strategic plan, which he contributed to during his former position. 

The ongoing issue of confusion regarding advertising remains a challenge, as McCready pointed out that Atlantic Canadians still encounter ads from other provinces promoting gambling websites that are not legally accessible in their area. This gives a sense of authenticity to these operators and deceives the public regarding the laws in this field, resulting in persistent confusion that ALC is striving to address. 

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: Efforts to Engage Younger Generations 

In 2025, McCready stated that an important milestone will be the launch of new lottery terminals at every retail site across Atlantic Canada. The latest generation of terminals will succeed an older version and notably enhance technical reliability for both retailers and players. They will provide additional advantages and choices to players while enhancing retail transactions and further merging the in-store and online experiences. 

“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.”