Success of Casinos
Loto-Québec, the crown corporation that oversees lottery and gaming in Quebec, reported significant revenue and profit growth for the last quarter year-on-year. A strong performing casino offering drove this marked improvement.
In the second quarter of this year, running from July 1 to September 30, revenues reached $814.2 million for a net profit of $421.6 million. That is a 16.1% increase in revenue and 18.5% increase in profit compared to Q2 last year.
The progress can be attributed to casinos and gaming halls as these areas saw the largest increases during the quarter. Casinos and gaming halls recorded revenue of $333.9 million which is a 32.2% increase on the previous year. Although it is important to note that during Q2 last year Loto-Québec was at the centre of a labour dispute.
In June 2023, 1,700 employees from casinos in Montréal, Charlevoix, Mont-Tremblant and Lac-Leamy went on strike. The workers represented by the trade union Confédération des Syndicats Nationaux (CSN) demanded an increase in wages to match the increase in business the casinos had experienced since the COVID lockdowns.
Other sectors contributed to Q2's improved revenue. The lottery generated $255.1 million in revenue, an increase of 11.8%. Gaming establishments contributed $231.8 million, a rise of 3.3%. Entertainment establishments overseen by Loto-Quebec include video lottery terminals in bars and restaurants, event betting, Kinzo, and bingo.
Big Plans
President and CEO of Loto-Québec Jean-François Bergeron said the excellent results mean the crown corporation can be optimistic about reaching the annual net profit target. Last year, casinos and gaming halls generated a record $1.1 billion in revenue. Despite an underwhelming first quarter, the lottery and gaming regulators are on track to beat last year’s record figure. Revenue and profits were down 3.0% and 8.2%, respectively.
The total revenue for the current fiscal year sits at $1.5 billion with $608.9 million coming from casinos and gaming halls. They are over halfway to beating figures from the previous year.
Mr Bergeron intends to take advantage of these notable improvements by building more gaming halls across the regions of Quebec. He told La Presse that there are 17 administrative regions in the province, and while they won’t build gaming halls everywhere, there will be others.
