Quebec Finance Minister Eric Girard is looking at government-owned enterprises, such as Loto-Québec and Hydro Quebec, to help find CA$1 billion [US$739 million] in savings as the province strives to get to a balanced budget by the end of this decade.
The two companies will be asked to come up with the $1 billion through “optimization efforts,” according to the minister, in the 2024-2025 budget tabled Tuesday, which projects an $11 billion deficit for the next fiscal year.
CDC Gaming Reports has attempted to get some clarity on exactly what “optimization efforts” will mean to Loto-Québec, but the crown corporation hasn’t responded.
Last month, Loto-Québec reported its latest quarterly financial-report data.
According to the crown corporation, through Q3 FY 2023-2024, from April to Dec. 25, 2023, they posted $2.11 billion in total revenues and a net income of $1.076 billion, decreases of $113.2 million (5.1 percent) and $128.4 million (10.7 percent) compared to the same period in the year previous.
Results by sector for the fiscal period, according to Loto-Québec: Lottery product revenues amounted to $668.8 million ($724.1 million the same period the previous year), casino and gaming-hall revenues totaled $797.9 million ($829.2 million the previous year), and gaming-establishment revenues amounted to $659.3 million ($686.4 million the previous year.
The Quebec Online Gaming Coalition followed the budget news and organization spokesperson Nathalie Bergeron sent this statement. “As the Minister of Finance tables a budget marked by a record $11 billion deficit, the Quebec Online Gaming Coalition deplores the fact that the Quebec government has decided to deprive itself of substantial tax revenues by refusing to regulate the online-gaming market on its territory.
https://pechanga.net/quebec-budget-lotoqubec-needs-to-find-optimization-cuts-p43648-192.htm
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Québec released its 2024-25 budget earlier this week, and the results were historic. But not in a good way.
The sixth budget under finance minister Eric Girard projects an $11 billion deficit for the next fiscal year, which in real dollars, could be the highest in the province’s history.
One solution to help alleviate La Belle Province’s budget woes is to launch a regulated Québec online gambling market. That’s what the Quebec Online Gaming Coalition pitched in its response to Girard’s March 12 announcement.
“As the Minister of Finance tables a budget marked by a record $11 billion deficit, the Coalition québécoise du jeu en ligne deplores the fact that the Québec government has decided to deprive itself of substantial tax revenues by refusing to regulate the online gaming market on its territory,” said Nathalie Bergeron, spokesperson for the QOGC.
“Since its launch, the Coalition has been offering a concrete solution to help the Québec government counter the effects of the budget deficit.”
Girard’s budget dropped almost exactly one month after his office publicly denounced the prospect of inviting private operators into Québec.
PlayCanada spoke to Bergeron immediately following those comments in February from the finance minister. It was at this time that she said the government’s opinion is “completely disconnected from the current reality.”
Throughout PlayCanada’s three separate conversations with Bergeron, the message was always crystal clear: Not only will a regulated market contribute much-needed tax dollars and enhance player safety, but it’s also the scientifically sound choice.
That said, the government has yet to agree. Perhaps the latest budget breakdown will serve as the coalition’s next in. After all, money talks.
“Regulating the market for private online gaming operators would enable the Québec government to obtain additional royalties estimated at a minimum of $230 million annually,” Bergeron said in a press release following the 2024-25 budget reveal. “This sum would be in addition to the revenues already provided by the Crown Corporation. These revenues could be reinvested in key sectors of the Québec economy, such as health and education, to the benefit of all Québecers.
“In addition to royalties, regulation would create many well-paid jobs here in Québec while generating significant public revenues, as is currently the case in Ontario.”
The Ontario argument is one the QOGC calls upon often, and for good reason. While the coalition has said that any potential iGaming framework doesn’t need to be a carbon copy of Ontario’s, the model is yielding positive results. Specifically, it contributed $523 million in revenues to provincial and municipal governments and nearly $1.6 billion to Ontario’s GDP during year one of operation.
Sticking with the status quo isn’t doing the government any favours, according to Bergeron and Co.
“At a time when the government is asking Crown Corporations, including Loto-Québec, to optimize and increase efficiency in order to find savings, Québec cannot afford to deprive itself of significant sources of new revenue,” Bergeron said.
Until last month, Québec appeared to have the inside track on becoming Canada’s next open online gambling jurisdiction. Since then, Alberta leapfrogged their neighbours to the east on the list of prospective iGaming regions. On Feb. 29, The Energy Province announced its 2024-25 budget, in which it’s allocating $1 million for a review of its current online gambling structure.
Despite the change in standing, Bergeron still views Alberta’s progress as a lesson for her government.
“The Minister missed an opportunity to send a clear signal in his budget, following Alberta’s example last week, to take action towards implementing regulations that would protect Québecers while boosting government revenues,” Bergeron said. “Instead of listening to the experts, who have been calling for regulation of the online gaming market for over 10 years, Québec prefers to protect Loto-Québec’s monopoly, to the detriment of public services and the Québec society that receives them.”
Whether the government will acquiesce under the pressure remains to be seen. Regardless, the QOGC has no plans of letting up.
https://www.playcanada.com/news/coalition-says-regulating-online-gambling-would-alleviate-quebecs-budget-woes/