Quebec’s gaming authority, Loto-Quebec, has celebrated its most profitable year since 2006, despite the threat of strikes at numerous casinos across the province. The Crown Corporation amassed a whopping $2.999 billion in total revenues during the fiscal year 2022-2023, representing a significant increase of $781.3 million or 35% over the previous year.
Breaking Down the Numbers
This growth follows Loto-Québec’s already impressive third-quarter report. Consolidated net income also saw an increase, reaching $1.600 billion, a $456.8 million, or 40%, rise from 2020-21. The latter, significantly impacted by the COVID-19 pandemic, had prompted extensive closures. As a result of these financial achievements, the corporation returned a substantial $1.597 billion in dividends to the provincial government.
Appreciation for Customer Loyalty
The gaming authority credits its financial success to the “eagerness and enthusiasm” of customers returning to in-person entertainment activities. The company has significantly streamlined its operations, achieving a remarkable expense-to-revenue ratio of 29.2%. Jean-François Bergeron, President and CEO of Loto-Québec, praised the efforts of his teams. “Our employees’ hard work and sound management yielded exceptional results,” said Bergeron, emphasizing that all profits are reinvested back into the province.
Notable Achievements
Despite a drop in lottery revenue of $11.3 million compared to the previous year, Loto-Québec celebrated creating 84 new millionaires and handed out two record-setting wins. The largest jackpot in Loto-Québec’s history went to a Montérégie resident, who won over $70 million. The second record went to a Lanaudière local, who won more than $3 million at the Casino de Montréal’s three-card poker table.
Focus on Responsible Gambling and Community Engagement
In addition to its fiscal achievements, Loto-Québec continued to demonstrate its commitment to responsible gambling and community outreach. The company invested $33.6 million to prevent problem gambling, funding campaigns promoting responsible gambling tools, employee and retailer training, and research projects.
Through its Les rendez-vous Loto-Québec program, the corporation supported more than 50 events and initiatives, embodying its commitment to unite communities across Quebec. Furthermore, it took significant strides in reducing its environmental footprint, decreasing its greenhouse gas emissions by 38.3% from 2009 levels.
Sector Breakdown
A deeper look into Loto-Québec’s performance shows that its casino and gaming halls experienced the highest increase in 2022-23, achieving record revenues of $1.1 billion, a $444 million or 67.6% increase over the previous year. Meanwhile, online casinos saw modest growth, with revenues reaching $269.9 million, a $4.6 million or 1.7% rise.
Gaming establishments, which include video lottery terminals in bars, event betting, Kinzo, and bingo networks, generated a total of $922.2 million, up $362 million or 64.6% from the previous year.
The company’s online offerings performed well, with Lotoquebec.com’s revenues reaching $403.9 million, marking a $13 million or 3.3% increase from 2021-22. Notably, the site now accounts for 13.5% of Loto-Québec’s total revenues.
Resilience Amidst Challenges
Resilience in the face of adversity is the story of Loto-Québec’s recent success. The company faced potential strikes and operated in an uncertain economic environment, shaped in no small part by the COVID-19 pandemic. Nevertheless, the gaming authority, against these odds, had a stellar year. Its annual performance is a testament to its strength, adaptability, and a firm commitment to serving the Québec community.
Adapting to a Digital Future
Particularly impressive is Loto-Québec’s adaptation to the digital landscape. The world has seen a rapid rise in online activities due to pandemic-related closures, and the gaming sector is no exception. Loto-Québec’s efforts to establish and grow its online platform have clearly paid off.
Online sales rose to $124.2 million, a $6.3 million (+5.4%) increase, now accounting for 12.5% of the sector’s total revenues, up from just 4.2% in 2019-20. Online casino revenues also saw a boost, increasing to $269.9 million, which represents 24.5% of the sector’s total revenues.
The digital pivot is undoubtedly playing a significant role in the corporation’s success, ensuring its resilience amidst challenging circumstances and paving the way for future growth.
