OLG on Track to Deliver a Profit for 2020-21 Despite Pandemic
February 22, 2021
Ontario Lottery and Gaming Corporation (OLG) says it is on track to deliver a positive return to the province for 2020-21 despite the ongoing closure of many of the 27 provincial casinos due to emergency measures necessary to protect the health and safety of Ontarians.
OLG says its net profit to the province will continue to help fund health care, education, and other priorities that benefit the people of Ontario.
“The accomplishments achieved under these circumstances are a testament to the resiliency of the organization and the people of OLG,” says Peter Deeb, Chair of OLG’s Board of Directors. “Apart from delivering continued profitability in the fiscal year, OLG’s new President and CEO, Duncan Hannay, is leading an innovative strategy to drive the next horizon of growth. This will include job-creating investments in land-based gaming, improved lottery performance through innovation in product and distribution, and transformative development of the digital gaming channel -- positioning OLG to actively support economic recovery in Ontario.”
Protecting the health and safety of employees and customers remains a priority for OLG. Extensive safeguards were established early in the pandemic at corporate offices, the OLG Prize Centre and casinos across the province to ensure safe workspaces and customer-facing operations. OLG also proudly utilized its lottery terminals in thousands of local retail outlets to communicate provincial messaging in support of public health efforts.
In this unprecedented environment, OLG achieved the following milestones in the last 12 months:
- The modernization of nearly 10,000 new lottery terminals across Ontario and an upgrade to the lottery network to enable new experiences at retail points of sale;
- The launch of the new OLG.ca, which has meaningfully exceeded growth objectives set for iGaming and iLottery revenue and profitability;
- The introduction of the exciting LIGHTNING LOTTO game -- a new favourite with players;
- The launch of $5 INSTANT PLINKO® with record sales made possible through a special “Support Local” initiative that returns all profits of this game to retailers for three months; and,
- The payment of lottery prizes to OLG’s valued customers, totaling $1.8 billion from April 2020 to January 2021.
In addition, OLG also continued to deliver value-for-money for the province through stakeholder supports, responsible fiscal management and good governance:
- More than $100 million achieved in durable cost savings through new efficiencies and spending deferrals;
- Early repayment of $60 million drawn from the provincial credit facility; and,
- Continued support for horse racing under the Long-Term Funding Agreement, and for Ontario First Nations under existing agreements.
“OLG continues to move forward consistent with the government's mandate to maximize efficiency and earnings, in addition to reducing unnecessary costs and financial waste at every opportunity," adds Deeb.
With a new business year approaching, OLG says it is intent on responsible growth in new channels with new products to deliver value for business partners, communities and all Ontarians.