Canada's Ontario Lottery and Gaming Corporation (OLG) has reported a 1 per cent increase in revenue to a record CAD$7.58bn for the year ended March 31st 2018.
Revenue came in 6 per cent (or $404m) ahead of budget, following growth in Lottery, Charitable Gaming, and iGaming, which offset a marginal decline in land-based gaming revenue.
Fiscal 2017/18 Revenue Comparison (CAD$)
Revenue from iGaming increased by 25 per cent to $73.1m, attributable to a growing number of active players, an expanded game portfolio and the addition of the PlayOLG Casino mobile app.
“In fiscal 2017–18, PlayOLG focused on player acquisitions and promotions to encourage players to visit the site while continuing to broaden the portfolio of casino games,” the operator stated. “Continued revenue growth is expected into the future as player loyalty and retention strengthens, awareness of the website increases, and the portfolio of games expands.”
Lottery revenue increased by 3 per cent year-on-year to $3.78bn, primarily due to higher sales for Lotto 6/49 and instant games, the full impact of Daily Grand, and the launch of the Hit or Miss regional Lotto game.
Overall lotto revenue fell by 3 per cent however to $2.13bn due to a lower number of value jackpots during the year. Lotto Max had 14 jackpots of more than $50m in 2017/18, versus 22 in the previous fiscal year, resulting in a decrease in the average sales per jackpot to $13.3m (FY 2016/17: $15.5m).
Instant sales increased by 13.5 per cent to $1.35bn, driven by the launch of The Big Spin and higher sales activity for $10 crossword, and $10 and $20 Variety products. Sports betting contributed $298.2m in revenue during the year, but was below budget due to lower wagers on combination picks, especially for baseball, hockey and basketball.
Land-based gaming revenue fell marginally by 0.8 per cent to $3.55bn during the year, comprising revenue from Slots and Casinos, a share of revenue from sites operated by land-based gaming service providers, and revenue from Resorts Casinos which are owned and managed by OLG with day-to-day operations carried out by private sector operators.
Revenue from charitable gaming grew by 12 per cent to $172.1m following a strong performance from TapTix, electronic devices that allow players to take part in Break Open Ticket (BOT) products.
Overall, OLG reported direct expenses of $3.23bn for the year, an increase of 5 per cent year-on-year, of which $2.12bn related to prizes. Indirect expenses were reduced by 7 per cent to $2.17bn, including personnel expenses of $855.8m, marketing and promotion expenses of $204.4m and payments to the Canadian government of $341.6m.
As a result, OLG reported net profit of $2.49bn for the year, an increase of 5 per cent year-on-year. This comprises $1.07bn from Lottery, $1.80bn from Land-based Gaming, $37.6m from iGaming and $2.3m from Charitable Gaming.