Slight increase in gaming profits
P.E.I. received $43,000 more in 2016-17 than previous year, data from Atlantic Lottery Corporation’s annual report shows
Net profits from gaming were up slightly on P.E.I. to $17.9 million in 2016-17, but down $9.6 million overall in Atlantic Canada, according to the Atlantic Lottery Corporation’s annual report released on Monday.
“The reason why our results should matter is that, as Islanders, you all have a stake as owners of this company,” Brent Scrimshaw, president and CEO of the Crown corporation, said at Monday’s Charlottetown and Area Chamber of Commerce luncheon.
The annual report notes the net profit in Atlantic Canada of $421.9 million was lower than the previous year. But 2015-16 had a record high of $431.6 million.
“The planets aligned in terms of jackpots. It’s one of those rare instances where we had everything firing for us at the end of the year,” he said. “This past year was more normalized.”
Overall, ACL had revenue of $1.15 billion, which includes $699 million in gross ticket sales. Each dollar of the revenue breaks down into 37 cents of profits to ACL, 34 cents to prizewinners, 10 cents for operations, four cents to taxes, 12 cents from sales to retailers and three cents for salaries and benefits. Profits are returned to ACL’s four provincial owners.
Also in 2016-17, $392.3 million was paid out in prizes.
On P.E.I., net profit was up by $43,000 to $17.9 million compared to the previous year. Scrimshaw said the increase was largely due to Red Shores and its 27 per cent contribution of total lottery sales on the Island. Nova Scotia also saw an increase in net profit ($136.9 million) while New Brunswick ($128.2 million) and Newfoundland and Labrador (138.9 million) had declines compared to 2015-16.
During his presentation, Scrimshaw also told the crowd new systems for retail and gaming operations were activated on Monday, including new games and a new mobile site.
“Now, we have the technology that we need to compete in what is a very global market place.”
He also raised the issue of the October 2016 auditors general report.
“We’ve taken our share of knocks over the past few years,” he said, adding ACL has addressed all of the operational improvements recommended in the report.
The report raised concerns about ACL’s corporate governance, expenses and salary increases and bonuses. In particular, it was revealed that, beginning in 2014-15, executives received base salary increases between 20 and 40 per cent and maximum annual bonuses between 50 to 220 per cent.
Some of the increases were expected to be phased in over three years.
Afterwards, Scrimshaw was asked about specific changes, especially in terms of changes to salary increases and bonuses, that have been made since the auditors general report.
Scrimshaw noted that the ACL responded in the report, but added that “what the auditors general asked Atlantic Lottery to do was make sure it had dialogue, or its boards have dialogue, with the province each and every year. And that has been addressed and is in place.”
Scrimshaw’s salary in 2015-16 was $278,251.With benefits and short-term incentives, the total compensation was $364,295. In 2016-17, his salary was $280,377 and the total compensation was $393,562.