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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:

• $152.7 million in profits in 2008-09
• $31.0 million from Casino Nova Scotia
• $36.7 million from Ticket Lottery
• $100.7 million from Video Lottery

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

In 2008-09, the combined profits of ALC and CNS resulted in a Payment to Province of $152.7 million; $31.0 million of which came from Casino Nova Scotia, Halifax and Sydney, and the other $137.4 million from ALC. All of this money is invested in government programs and services that benefit Nova Scotians.

100% of all ALC 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, $52 ($95 x 55.5%) goes to the Operator, and $43 ($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 $152.7 million that was paid to the Province in 2008-09 is used to help build better roads, schools, hospitals and communities. To put the potential impact of this money in context, $152.7 million would pay for the construction of 15 elementary schools, the salaries of almost 2,800 registered nurses, the construction of 50.9 kilometres of new twinned-lane highway or the repaving of 509 kilometres of roads in Nova Scotia.

To Prevention and Treatment:
In 2008-09, NSGC spent more than $7.5 million on responsible gambling programs and problem gambling treatment and prevention. NSGC has more than a dozen community outreach and prevention programs, directly reaching more than 41,000 people.

To Community Support (2008-09):
NSGC is strongly committed to community support:

• Prevention, education and treatment - more than $7.5 million.
• Employment - more than 700 employed directly
• Commissions - more than $43.3 million in commissions for primarily small businesses
• Other contributions

Community Programs:

To Support4Sport:
NSGC, with its ticket lottery operator ALC, 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 will go to sport in Nova Scotia. It will raise at least $2 million a year for amateur sport.
A new series of Support4Sport ticket lottery products was introduced in May 2007. They are branded with the Support4Sport Program logo to show consumers that all profits go directly to sport in Nova Scotia.

To Sponsorships:
Through sponsorship programs, both of NSGC's operators - CNS and ALC - contributed to community events throughout Nova Scotia. These community-focused activities included such things as the East Coast Music Awards, Cape Breton Regional Hospital and various rural exhibitions around the Province.