Ontario Forced to Cut Gambling Profit Projections
Ontario Lottery and Gaming Corporation (OLG), the government-managed gambling operator, had previously announced reforms to the online gambling system that would provide an extra C$1.26 billion annually by 2017-18, but saw the projections backfire as the gambling forecast failed to reach the expected level.
The OLG were expecting a profit of C$100 million for the fiscal 2015-16 in the online gambling sector via online casinos and other popular forms of gaming, but the Ontario’s Auditor General established a mere C$15 million in fiscal report, which forced Ontario Lottery and Gaming to downgrade the projections for revenue growth. The overall forecast for the last fiscal year stood at C$2.7 million, which ended up being 500 million short of the projections made by OLG back in 2012 when the modernization plans were presented.
Ontario’s online gambling platform failed to catch up with players in the Canada province however, who are still not attracted to legal government sites.
Other reasons for such a downfall include OLG’s failed plan to build new casinos in larger cities and failed attempts to move forward with the privatization of the lottery operations.
With all being said, the OLG administration is now forced to cut gambling profit forecasts by 75% with projected revenues currently drawn back to C$25 million with the Auditor General Bonnie Lysyk believed to considering even the revised projections to possible being overestimated.
“The C$25 million forecast for internet gaming might be overstated. We question the optimism of these growth projections”, Lysyk stated.
What is more, the OLG’s latest projections state that proposed reforms to the new player platform and a mobile application could help boosting the annual profits to extra C$889 by 2021-22.
Such projections are a 30% decrease in initial forecasts and also a four-year delay to OLG’s original estimates.