Atlantic Provinces Consider Commercial iGaming Expansion As ALC Reports 35% Market Share

Atlantic Canadian provinces are considering the future of their online gambling frameworks as New Brunswick explores the possibility of introducing a regulated commercial iGaming market.

New Brunswick Finance and Treasury Board Minister René Legacy confirmed the provincial government is examining options for regulating private online operators as it considers how to address activity outside the existing regulated market.

“Online gaming is continuously evolving and the number of options – regulated and unregulated – continues to grow,” Legacy said.

“Government has a responsibility to ensure New Brunswick’s legal and regulatory framework keeps pace with an evolving gaming environment.

“Approaches in other provinces and jurisdictions are being monitored as government considers how best to maintain a safe, responsible, and appropriately regulated gaming environment for New Brunswickers. The review is ongoing.”

Atlantic Provinces Monitor iGaming Models

New Brunswick’s review follows the introduction of commercial regulated iGaming markets in Ontario and Alberta.

Canadian Gaming Association (CGA) President and CEO Paul Burns also said last month that “there are conversations going on in Atlantic Canada” about potential changes to the region’s gambling framework.

Nova Scotia and Newfoundland & Labrador are monitoring developments elsewhere in Canada but have not announced plans to introduce commercial iGaming markets.

A spokesperson for the Nova Scotia Finance and Treasury Board said the province is monitoring approaches to online gaming in other jurisdictions but has no immediate changes planned.

Newfoundland and Labrador’s Department of Finance expressed a similar position.

“We are aware of the regulation of online gambling in both Ontario and, more recently, Alberta,” a spokesperson said.

“At this time, we have no immediate plans to pursue an open, regulated market, but continue to monitor all aspects of the lottery and online gambling market.”

Atlantic Lottery Reports 35% iGaming Market Share

Online casino and sports betting in New Brunswick, Nova Scotia, Newfoundland & Labrador and Prince Edward Island are currently authorised through Atlantic Lottery Corporation (ALC), which is jointly owned by the four provinces.

In its 2025–26 annual report, ALC said it accounted for 35% of the region’s overall iGaming market.

That represents an increase from 34% in 2024–25 and 22% in 2023–24.

Market research firm H2 Gambling Capital separately estimated that ALC accounted for 35.7% of gross gaming revenue in the region as of October 2026.

ALC President and CEO Dallas McCready previously acknowledged that the operator’s share remained relatively low given its position as the region’s only government-authorised online gambling provider.

ALC Raises Concerns Over Unregulated Gambling

Atlantic Lottery estimates that approximately 65% of online gambling activity in the region takes place through sites that are not regulated or taxed by the Atlantic provincial governments.

It said this results in approximately $250m in revenue leaving the region each year.

McCready said:

“Atlantic Lottery is facing a level of disruption that is unprecedented in our 50-year history and the effect on our financial performance last year was clear. The growth of illegal online gambling has fundamentally changed the competitive landscape.”

ALC has also pointed to the impact of advertising from operators associated with Ontario’s commercial iGaming market.

“The changes in Ontario have attracted a lot of attention, and we know they have led to Atlantic Canadians seeing a high volume of advertising from gambling operators that cannot legally operate in our region,” an ALC spokesperson said.

“We also know these sites from Ontario and beyond are attracting more than $250m in revenue from Atlantic Canada each year, without returning funds or being subject to regulation by our Atlantic provincial governments.”

ALC Open To Commercial Competition

McCready has previously indicated that Atlantic Lottery would be prepared to compete against private operators if provincial governments decided to introduce an open commercial market.

“I think the government recognises that some people are making the decision to play on illegal sites,” McCready said in 2025.

“There are conversations recognising that activity, and at some point we’re hoping they’ll allow us to compete. But it’s a decision of the policymakers and what they think is best for their people.”

ALC is also a member of the Canadian Alliance for Regulated Gaming (CARG), formerly the Canadian Lottery Coalition.

CARG Executive Director Molly Cormier said the organisation does not advocate for a particular market structure but believes governments should consider evidence from other Canadian jurisdictions when reviewing gambling policy.

“The issues CARG advocates for transcend any particular market model,” Cormier said.

The organisation has also called for enforcement against operators offering or marketing gambling products in jurisdictions where they are not authorised.

Online Revenue Increases Despite Profit Decline

Atlantic Lottery reported net profit of $492m for 2025–26, down from $499m during the previous financial year and $10.3m below budget.

New Brunswick recorded the largest decline among the four provinces, with net profit falling 3.7%.

ALC’s online operations performed more strongly, with verified unique online player accounts increasing from 372,000 to more than 408,000.

Net revenue from online casino, sports betting and bingo increased by almost $28m to $144.8m, while net profit from the segment rose 15% year-on-year.

However, online sports betting handle declined 5.6%, which ALC attributed partly to advertising from operators not authorised in Atlantic Canada and the use of virtual private networks to access platforms outside the region.

“These factors have been amplified since Ontario opened its market to private operators in 2022,” ALC said.

The operator has continued to develop its regulated offering, including through a new sports betting technology partnership with Kambi.

It also added more than 140 online slot titles during 2025–26 and introduced live casino products in Nova Scotia and Newfoundland & Labrador in December 2025.

Any move towards a commercial iGaming framework would ultimately require decisions from the provincial governments that own Atlantic Lottery.