New ALC CEO: We’re Losing $200 Million a Year to Illegal Operators

Posted on: February 26, 2025, 04:55h. 

Last updated on: February 27, 2025, 09:39h.

Mark Keast Read More

Expertise: Canadian Gaming, iGaming, Las Vegas, Sports Betting, NFL, Boxing, UFC.

• New Atlantic Lottery Corporation President and CEO weighs in on grey market
• Illegal operators removing $200 million from Atlantic province coffers
• Provincial lottery corporations team up

The new president and CEO of the Atlantic Lottery Corporation says $200 million leaves their region each year via gambling sites that are illegal in the Atlantic Canada provinces.

Dallas McCready, who took over as head of the ALC after Patrick Daigle retired, is watching what Manitoba Liquor & Lotteries (MBLL) is doing. An injunction filed on their behalf by the Canadian Lottery Coalition in a Manitoba court is aimed at banning illegal operator Bodog from the province. 

Interestingly, Bodog previously announced it’s shutting down operations in Nova Scotia.

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

$200 Million Out the Door

ALC is the only platform where people in the region can legally gamble online, and the grey market is an ongoing challenge. Ontario launched a private, competitive iGaming model in 2022 and is now one of the largest iGaming markets in North America, with Alberta expected to come online with an Ontario-style 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, who was ALC’s chief strategy officer before taking on the new role in January, said they were “encouraged” by Bodog’s decision to cease operations in Nova Scotia, but says there’s a lot of work that still needs to be done.

Court Injunction Targeting Grey Market Operators

CLC Executive Director Will Hill said the court injunction against Bodog in Manitoba is a sign of things to come for illegal operators in other provinces as well. 

“[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 corporations saw fit to come together to curtail illegal online gambling in Canada. A court date in the case is set 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.”

Confusion Around Advertising

CLC represents a collaboration of the 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 added that ALC will also work to counter illegal operators by implementing a five-year strategic plan, which he helped author while in his previous role.

Confusion around advertising is a persistent challenge, as Atlantic Canadians continue to see advertising from other provinces for gambling websites that aren’t legally available in their region, McCready added. This lends an air of legitimacy to these operators and misleads the public about the legalities in this area, leading to ongoing confusion that ALC is working to correct.

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: Working to Capture Younger Generations

In 2025, McCready said a key milestone is the upcoming rollout of new lottery terminals at all retail locations in Atlantic Canada. The new generation of terminals will replace an older model and significantly improve technical reliability for retailers and players alike. They will also offer new benefits and options to players while enabling improvement to retail purchases and further integrating the in-store and online experience.

“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.”