Online gaming helps boost profits at Manitoba Liquor and Lotteries

Manitoba Liquor and Lotteries boosted its profits nearly $3 million last year over 2015, with online gaming bringing in major dollars,according to its annual report released on Tuesday.

The Crown corporation's profits for 2016-17 were more than $586 million.

"This year's annual report makes clear that Liquor & Lotteries is on the right track,"Polly Craik, the chair of the board of directors, said in the report.

"Strong revenues and fiscal discipline such as the decision to cancel plans for a $75-million head office has helped put the corporation on a positive financial trajectory, while a new, leaner, executive team is helping deliver improvements across our operating areas."

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MLL ditched the plans for the new building last September, saying it would not be a responsible use of public money. The decision was made after theProgressive Conservatives appointed a new board of directors and ordered a review of the purchase and relocation plan. A few months later, the government alsoset specific management reduction targets of 15 per cent for the Crown.

A rise in online gamingthrough the PlayNow.com platformhelped increase the growth. The province's only regulated online gaming siteincludescasino games, lottery products, bingo, poker and live sports betting.

Casino revenuesincreased $2.8 million, the report said, because of the online gaming site and electronic gaming at casinos.

Liquor operationrevenues increased $17.9 million, but the report said people are drinking slightly less wine, spirits and beer although they arebuying more expensive liquor.

"The Manitoba beer landscape continues to change with the growth in popularity of craft-style, single serve beers," the report said.

Operating expenses went up 3.2 per cent, according to the report, which said it was primarily a result of increases in salaries and benefits, and maintenance to support expanded Liquor Mart stores.

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