Manitoba Canada Online Gambling Site Under-Performs

Published Thursday, January 09, 2014 -
Manitoba Canada Online Gambling Site Under-Performs

The laws in Canada regarding internet wagering are clear. Online gambling is controlled by the provincial governments and any other offering is illegal. That being said there are no controls over the public’s access to offshore sites offering betting over the internet.

The Provincial governments of British Columbia, Quebec, Manitoba and others including the soon to be launched online gambling offering in Ontario are competing with all the other sites available online.

Manitoba has created the Manitoba Liquor & Lotteries Corporation which is responsible for the distribution and sale of beverage alcohol, and for providing gaming and entertainment experiences, in a socially responsible manner.

Revenues generated by Manitoba Liquor & Lotteries are returned to the Province to support priority programming in health care, education, social and community services, economic development and public safety initiatives.

Manitoba launched its online offering in conjunction with the British Columbian platform in January of 2013. Manitoba has after a year of operation is downgrading its revenue projections.

Andrea Kowal, a spokesperson for Manitoba Liquor and Lotteries, commented on the development, "It's a very, very competitive market and whether we entered it late or not, the fact is there are choices customers are always going to make in any sort of commerce, including e-commerce," Kowal added, "There are a lot of other sites out there that Manitobans can play on."

The government of Manitoba had projected revenue from the site would realize $1.5 million in net revenues in its first year, and expand to $17 million annually by the year 2018. The reality has proven different and in the six-month period ending Sept. 30, 2013 the website netted the province only $300,000. Revenues were $1.8 million while expenses totaled $1.5 million.

The government authorized web locations compete with many other offerings that provide a wide assortment of games, odds, and payouts. The Manitoba government has said residents were already spending $37 million a year on out-of-province websites. "We're still very positive about the product and ... it is something that is growing steadily." Kowal explained.

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