Booze sales down, gaming and cannabis up in Manitoba

MANITOBA Liquor and Lotteries delivered $724.1 million in profits to the province in 2025-26, with the lion’s share coming from alcohol, even as booze sales continue to shrink.

The Crown corporation’s contribution to Manitoba’s general revenues decreased by $6 million or 0.8 per cent from last year’s allocation of $730.1 million, its annual report shows.

That indicates stable overall performance “despite a changing operating environment,” the recently-released report said.

Those changes include the order from Premier Wab Kinew last year to remove U.S. alcohol from Liquor Mart store shelves after President Donald Trump launched a trade war against Canada as well as Manitobans’ changing tastes.

The Manitoba Liquor and Lotteries (MBLL) report shows Manitobans are less thirsty for alcohol and more hungry for gaming and cannabis.

In 2025-26, net income from liquor sales was $308 million, down from $317 million the previous year.

Online gaming in Manitoba was up, producing a net income of $44 million, compared to nearly $43 million the year before.

Net income from cannabis sales was higher, too — nearly $54 million, compared to $47 million the year before.

Meanwhile, the Crown corporation had to address risks and threats to its market share from unregulated online gaming sites and black market cannabis sales.

“Manitoba took action to block Bodog from operating in the province, and we continue to work with national partners to deter illegal platforms from diverting potential income for Manitobans to offshore operators,” MBLL president and CEO Gerry Sul said in the report.

Last year, Manitoba Court of King’s Bench Justice Jeffrey Harris barred Bodog, an offshore online casino, from operating in the province after the Crown corporation argued the illicit site had siphoned off a significant amount of its revenue.

A spokesperson for MBLL said Wednesday that illegal operators earn from Manitobans an estimated $95 million in gross gaming revenue (wagers minus prize payouts).

“This equates to a loss to Manitoba Liquor and Lotteries, and ultimately the Government of Manitoba, of approximately $50 million in net income (gross gaming revenue minus operating expenses and commissions), the spokesperson said.

Cannabis operations revenue increased, thanks to more retail stores — estimated at 249 — with improved access in rural and city areas. The Crown corporation said it has focused on improving processes for retailers, reducing barriers, and supporting better cash flow.

“These efforts help the legal market compete with illicit sources and ensure safe access for consumers,” Sul said.

As for gambling operations, net income from the Casinos of Winnipeg increased to $106 million in 2025-26 from $97 million the year before. Manitobans were playing more bingo, table games and electronic games at the two sites, the report said.

The net income from Video Lottery Terminals was $180 million – lower than the $186 million from the previous year. The Crown corporation said the reduced revenue is consistent with broader national VLT trends.

The net income from lottery and break-open tickets also dropped — to $30 million from $39 million the previous year. The annual report pointed to a strong link between jackpot levels and the sale of lottery products. It said that Lotto Max sales decreased $6.6 million (nearly 10 per cent) from the previous year, as the number of $70 million jackpots decreased to 16 from 23, year over year.

Manitoba Liquor and Lotteries’ operating expenses increased to $300 million from $286 million the previous year. That’s owing to higher employee benefit costs following negotiated increases in collective agreements, investments in technology, and platform maintenance fees paid to the provider of Manitoba’s online gaming site PlayNow — the British Columbia Lottery Corporation.

The Manitoba Liquor and Lotteries Corp. Act requires the province to commit two per cent of its net income toward social responsibility initiatives. More than $14 million was set aside for those initiatives the 2025-26 report said. They include the DrinkSense and Informed Gambling programs to help customers make lower-risk and informed decisions, sales and service training programs for employees, provincial addictions treatment programs, as well as independent research on harm reduction.

While cost of living and affordability issues may be a concern for governments and many in the province, Manitobans aren’t expected to cut back on their cannabis and gaming consumption.

Manitoba Liquor and Lotteries expects it will have higher profits to share with the province next year — an estimated $732.8 million — a 1.2 per cent increase from the latest allocation, the annual report said. It said it’s enhancing wholesale and distribution processes on the cannabis side of operations. A new online gaming app is expected “to provide a better player experience.”

On the liquor side of the business, it said it is working with suppliers to respond to continued declines in per capita consumption.

carol.sanders@winnipegfreepress.com