New Brunswick is weighing whether to let private operators offer online gambling in the province, which would strip Atlantic Lottery of its monopoly there.
“Government is exploring options around regulating private online operators,” Finance Minister René Legacy said in a statement to Brunswick News.
Legacy pointed to the evolution of online gaming as both regulated and unregulated options continue to grow. The province did not provide a timeline for its review.
In Canada, Ontario opened its online casino and sports betting market to private operators in 2022. Alberta became the second province to do so when it launched its market in July.
Why New Brunswick is reconsidering
Like New Brunswick, Ontario and Alberta ran government-controlled online gambling before opening their markets to private operators. In New Brunswick, that role belongs to Atlantic Lottery, a Crown corporation owned by New Brunswick, Nova Scotia, Prince Edward Island, and Newfoundland and Labrador.
Finance and Treasury Board spokesperson David Kelly said the province is monitoring approaches in other provinces and jurisdictions to “maintain a safe, responsible, and appropriately regulated gaming environment for New Brunswickers.”
Advertising from operators licensed in Ontario and Alberta still reaches New Brunswick residents through national broadcasts. Those operators cannot legally serve New Brunswick, but residents searching for them are often redirected to the same companies’ international sites. Canada’s Criminal Code does not make it a crime for residents to bet on offshore platforms.
Atlantic Lottery estimates those sites draw more than C$250 million a year out of Atlantic Canada. In New Brunswick, budget documents show government lottery revenue is down C$8 million from two years ago.
“These operators are drawing significant gaming dollars out of Atlantic Canada, do not contribute to provincial revenues in our region and are not subject to the same requirements that govern Atlantic Lottery,” Atlantic Lottery spokesperson Greg Weston said.
Online gambling models to follow
New Brunswick can look within the country to Ontario and Alberta. However, Michael Naraine, associate professor of sport management at Brock University and the first Canadian member of the Institute on Sports Wagering and Gaming at San Diego State University, called Ontario’s approach the “wild west.”
Ontario charges operators a C$100,000 annual fee, places no cap on the number of operators and takes 20% of gaming revenue. Naraine said Alberta’s system is slightly better because it dedicates funding to research, education, and addiction and mental health services.
Naraine pointed to New York’s sports betting market as a stricter model. The state limited mobile sports betting to a smaller group of operators, charged each a $25 million licensing fee and taxes their revenue at 51%.
