Atlantic Lottery profits given up by P.E.I. to pay off $4.3M GeoSweep debt

The P.E.I. government is giving up its share of Atlantic Lottery Corporation lottery profits until the $4.3 million it agreed to invest in the U.K. gaming company Geonomics is paid back.

Earlier this year, ALC re-assessed the value of the investment in the company, which is responsible for the online lottery game GeoSweep, at zero dollars.

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P.E.I. stopped receiving its share of lottery revenues back in August.

ALC says the debt should be paid off by the end of this month,

The $4.3 million represents about one-quarter of the lottery revenues P.E.I. would have otherwise received this year.

"Well certainly it does have an impact on our revenues, but notwithstanding that, you know, last year our revenues were up, we'll look and see what our total revenues are. That's only one source of our revenues," said Finance Minister Allen Roach.

ALC came to the four Atlantic provinces in 2011, asking them to invest in Geonomics. P.E.I. and New Brunswick agreed.

ALC put up the money for the investment for which P.E.I. is now paying.

Roach says, while the money is being withheld now, the loss was actually recorded in the previous fiscal year, so the budget deficit for the current year won't be affected.