Wagering, weed contribute to big bounce-back year for MLL

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This article was published 30/09/2022 (1132 days ago), so information in it may no longer be current.

Following a year of COVID-19 shutdowns, 2021-22 was a banner year for gaming and cannabis revenue, according to Manitoba Liquor and Lotteries’ annual report made public Thursday.

The Crown corporation made $1.41 billion this past year, a $206 million or 17 per cent increase over the previous year when total revenue fell to $1.21 billion as pandemic-related closures restricted Manitobans’ access to casinos, bars and VLT lounges.

In 2019-20, prior to the global pandemic declared in March 2020, MLL reported revenue of $1.46 billion.

The corporation that generates revenue for the province by supplying cannabis, liquor and a host of gambling operations added $597.8 million to the provincial coffers. That’s a 40 per cent increase compared to the previous year’s $425.1 million allocation.

Early in the pandemic, with the sale of liquor and cannabis declared an essential service by public health, revenues for both soared while COVID-19 restrictions and lockdowns were imposed. When bars and restaurants reopened, Liquor Mart revenues dropped.

In 2021-22, revenue from liquor operations was $873 million, down $12.8 million from the previous year. The Manitoba government still raked in $316 million from booze sales this past year.

Cannabis revenues climbed even higher, the annual report shows.

Pot sales increased to $113 million in 2021-22, $33.7 million more than the previous year. MLL, which supplies retailers, attributes the increase to 84 new cannabis stores opening in Manitoba in 2021-22. The income allocated to the province from cannabis operations was $24.5 million.

Manitobans’ gambling activities, meanwhile, returned to normal after the reopening of VLT lounges and casinos that had been closed for 282 days in the first year of the pandemic.

Gambling revenues in 2021-22 totalled $430 million, an increase of $184 million from the previous year. After pandemic restrictions lifted, casinos took in $85 million more, VLT revenues rose $89 million, online gaming took in $10 million more and revenue from lottery tickets increased by $410,000, the annual report shows. Casinos produced a $6 million allocation for the government, lotteries $50 million and VLTs $129 million.

Manitoba Liquor and Lotteries’ online gaming revenue increased in 2021-22 to $82.9 million from $72.4 million the previous year. The Manitoba government’s take from online gaming this past year was $63 million.

Looking to the current year, MLL said its allocation to the provincial government is budgeted to be $635 million, an increase of $37.2 million.

The annual report didn’t spell out how it expects to hit that target, but mentioned changes coming to its liquor operations and ways to make gaming experiences more modern and fun.

Liquor operations is launching a project “to increase its flexibility to adapt to expanded retailing opportunities, increasing availability and convenience for Manitobans and providing administrative efficiencies.”

On the gaming side, it said close to 300 aging electronic machines will be replaced with a variety of new games and 960 old VLTs will be replaced. A new bingo option with a chance to win $1 million will be introduced. The corporation said it wants to increase online gaming with a “Bet on Manitoba” marketing campaign to promote PlayNow.com. It has already been trying to attract online bettors by advertising it as “Manitoba’s safe and secure way to gamble online.”

At the same time, it has a social responsibility that’s mandated by law.

The Manitoba Liquor and Lotteries Corporation Act requires it to allocate two per cent of annual net income to “social responsibility initiatives.” Those are to help “customers make low risk and informed decisions” about using its products and services.

In 2021-22, it allocated $11.4 million for social responsibility spending, including $9.4 million for addictions treatment and other support programs, funding for “internal research and program evaluation” and operating and consumer awareness.

carol.sanders@freepress.mb.ca