Nova Scotia weighs online gambling expansion as offshore market drains revenue
The province is watching other jurisdictions as data shows millions in revenue flows to unregulated offshore sites.
Nova Scotia is closely observing the regulated online gambling markets in Ontario and Alberta. Finance Minister John Lohr told reporters that discussions on the topic are currently happening. "Obviously, those are conversations that are underway right now," Lohr said. He noted the province does not have a full understanding of the social effects of online betting. Lohr warned, "There are significant harms for people who become addicted to it."
The province currently has only one legal online gambling platform, run by the Atlantic Lottery Corporation. Residents can still use offshore websites that are not licensed. Research from TRM Public Affairs shows the potential online gambling market in Atlantic Canada is worth 921 million dollars. Regulated channels capture just 25 percent of that total, with the remaining 75 percent going to unregulated offshore operators. Each year, an estimated 691 million dollars in gross gaming revenue leaves the region for the unregulated market. If taxed at a standard provincial rate of 20 percent, this represents about 168 million dollars in lost government revenue across Atlantic Canada. This data is prompting Nova Scotia to reconsider its current monopoly model.
Other provinces are moving toward more open markets. New Brunswick has introduced Bill 8 to create rules for live-dealer online casino games. Officials there are also considering an Ontario-style commercial system. Ontario's framework, launched in April 2022, now includes 49 licensed operators running 84 gaming sites.
Commercial operators in Ontario have generated 3.6 billion dollars in iGaming revenue so far in 2026, taxed at a 20 percent effective rate. Alberta started its own competitive market on July 13. The Alberta iGaming Corporation reported 122 million dollars in gross gaming revenue from 51 active websites through the end of September. In Quebec, the minority Parti Québécois government and the opposition Liberals have both pledged to end Loto-Québec's monopoly on online gambling. They plan to adopt a licensed private operator model similar to those in Ontario and Alberta.