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Where Does the Money Come From & Where Does it Go?

Where does the money come from?

The gaming industry worldwide is an important and growing industry, and Nova Scotia is no exception. The Province's gaming industry is well run and strictly regulated to ensure an entertaining, responsible and fair gaming environment. All the money made from gaming goes directly back to the Province and the people of Nova Scotia:

• $145.9 million in profits in 2009-10
• $29.5 million from Casino Nova Scotia
• $32.8 million from Ticket Lottery
• $99.5 million from Video Lottery

How much money from Casino Nova Scotia (CNS) and Atlantic Lottery goes back to the Province of Nova Scotia?

In 2009-10, the combined profits of Atlantic Lottery and CNS resulted in a Payment to Province of $145.9 million; $29.5 million of which came from Casino Nova Scotia, Halifax and Sydney, and the other $132.3 million from Atlantic Lottery. All of this money is invested in government programs and services that benefit Nova Scotians.

100% of all Atlantic Lottery profits (gross revenue minus expenses) are returned to its shareholders, the four Atlantic Provinces. Therefore, if $10 million in profits are generated in Nova Scotia, $10 million in profits stay in Nova Scotia.

The formula under the casino contract is somewhat different. The Operator is paid a fee based on a percentage of all revenue generated in the Halifax and Sydney casinos, after a deduction to fund a reserve account for capital assets. "All revenue" includes gaming and non-gaming revenue (eg. food and beverage, entertainment, parking, etc.). The Operator's fee (or share of revenue) is 55.5%. NSGC keeps the remaining 44.5%.

For example, for $100 in casino revenue, $5 (5%) is deposited to the capital reserve account, $53 ($95 x 55.5%) goes to the Operator, and $42 ($95 x 44.5%) goes to NSGC.

The Operator is responsible for paying all the expenses incurred in operating the casinos (eg. salaries and benefits, marketing and advertising, overhead, etc).

Where does the money go?

To the Province:
100% of revenue generated from gambling in Nova Scotia is given directly back to the Province to help pay for programs and services that benefit all Nova Scotians. The $145.9 million that was paid to the Province in 2009-10 is used to fund important programs, services and infrastructure in Nova Scotia. To provide context, $145.9 million would pay for the construction of 12 elementary schools, the twinning of 49 kilometres 100-series highway or the paving of 486 kilometres of secondary highway in Nova Scotia.

To Prevention and Treatment:
In 2009-10, NSGC spent more than $7.8 million on prevention, education and treatment. NSGC has more than a dozen responsible gambling and prevention programs, which reached 95,000 Nova Scotians.

To Community Support (2009-10):
NSGC is strongly committed to community support:

• Prevention, education and treatment - more than $7.8 million.
• Employment - more than 660 employed directly
• Commissions - more than $41 million in commissions for primarily small businesses
• Other contributions

Community Programs:

To Support4Sport:
NSGC, with its ticket lottery operator Atlantic Lottery, launched a program in August 2006 to enhance sports funding “from playground to podium.” The Support4Sport Program is a suite of ticket lottery products where 100% of profits go to sport in Nova Scotia. In 2009-10, $3.7 million was raised through Support4Sport, bringing total funds raised to $8.6 million since the Program’s inception. Support4Sport ticket lottery products are branded with the Support4Sport logo to show consumers which products’ profits go directly to fund sport in Nova Scotia.

Through its Support4Communities Programs, NSGC and its operators - along with their employees - contributed to a variety of community events throughout Nova Scotia.