The Short Answer: Back to the Province
Canadian lotteries are provincially regulated Crown corporations — not private companies. That means they don't have shareholders extracting profits. After paying out prizes and covering operating costs, the net income flows directly to the provincial government, which then decides how to spend it.
In total, Canada's four major lottery corporations returned roughly $6.4 billion to provincial governments in the 2024–25 fiscal year. That's a significant chunk of provincial revenue for each jurisdiction — roughly equivalent to what many provinces spend on post-secondary education.
Ontario Lottery and Gaming (OLG)
Net profit to the province: $2.25 billion (2024–25)
OLG is Ontario's lottery and gaming authority. Its 2024–25 annual report shows total revenues of $4.8 billion, up 2% year over year, with $2.25 billion flowing to the Province of Ontario as net profit — down slightly from $2.4 billion the prior year, largely due to rising operating costs.
OLG's profits are used to fund a wide range of public priorities. The money supports Ontario First Nations communities, host municipalities near casinos, Ontario charities, and the province's horse racing industry. OLG also remits 20% of gaming revenue from major casino properties — including Fallsview, Casino Niagara, Casino Rama, and Caesars Windsor — directly to the province.
Digital gaming has become an increasingly significant contributor: net profit from OLG's online platform hit a record $378 million in 2024–25, up from $292 million the year before.
ℹ️ Ontario detail: Host municipalities — the cities and towns where OLG casinos are located — receive a share of gaming revenue as part of their hosting agreements. This is separate from the province-wide allocation and goes directly to local community programs and infrastructure.
BC Lottery Corporation (BCLC)
Net income: $1.408 billion (2024–25)
BCLC is unusual in that it explicitly states that 100% of its net income returns to the Province of BC. The corporation had a challenging 2024–25, with net income $140 million below the prior year and $28 million below its own target — but still cleared $1.4 billion back to the province.
The funds flow through several streams. The BC government's Community Gaming Grants program distributes $140 million annually to non-profit organizations across the province — arts groups, sports organizations, community associations, and social service agencies. First Nations communities receive 7% of all BCLC revenue, a commitment built directly into BCLC's operating mandate. The remainder flows into general provincial programs including healthcare, education, and cultural initiatives.
ℹ️ BC detail: The 7% First Nations revenue share is not discretionary — it's a fixed allocation baked into BCLC's structure. Based on 2024–25 total revenues, that works out to approximately $100 million going to First Nations communities in BC that year.
Western Canada Lottery Corporation (WCLC)
Total lottery sales: $1.56 billion (2024–25)
WCLC operates differently from the other corporations — it's a non-profit entity jointly owned by the governments of Alberta, Saskatchewan, and Manitoba, with Yukon, the Northwest Territories, and Nunavut as associate members. WCLC itself doesn't retain profits; all net revenue after prizes and operating costs flows back to member governments proportionally based on where the tickets were sold.
Of the $1.56 billion in total sales, approximately 55% — around $854 million — was paid out in prizes. The remaining revenue, after operating expenses, was distributed to the member provinces and territories. Manitoba alone received $730.1 million from lottery operations in 2025.
What each province does with those funds is its own decision. Historically, Alberta has directed lottery proceeds toward community facilities, libraries, and arts programs. Saskatchewan and Manitoba have funded healthcare, recreation infrastructure, and social services. The northern territories use their smaller shares for community development in remote areas.
Loto-Québec
Net income paid to Quebec: $1.5+ billion (2024–25)
Loto-Québec had a strong 2024–25 fiscal year, with total revenues approaching $3 billion and consolidated net income exceeding $1.5 billion — both up from the prior year. The entire net income is paid to the Quebec government as a dividend.
In addition to the government dividend, Loto-Québec made 109 new millionaires in 2024–25 and distributed nearly $1.8 billion in prizes to lottery players across the province. The corporation employs thousands of Quebecers and contributes to the provincial economy through its network of lottery retailers and casino operations.
Quebec's government allocates Loto-Québec's dividend through the general provincial budget, meaning it effectively funds health care, education, and public infrastructure alongside other provincial revenue sources.
What "Going to the Province" Actually Means
One thing worth understanding: in most cases, lottery profits don't go into a dedicated fund earmarked for a specific purpose. They flow into the general provincial budget. The province then decides how to spend that money as part of its overall fiscal plan.
This is different from, say, a charity lottery where ticket proceeds are explicitly tied to a named cause. When OLG sends $2.25 billion to Ontario, that money becomes part of the same pool that funds hospitals, highways, schools, and everything else. Whether that's a good thing or a bad thing depends on your view of how governments should manage public finances — but it's worth knowing how the system actually works.
The exceptions are specific programs with dedicated funding: BCLC's Community Gaming Grants ($140 million to non-profits), the First Nations revenue shares, and host community agreements. These are contractual commitments, not discretionary spending.
The scale in context: Canada's four lottery corporations together return more to government coffers each year than the federal government spends on many major programs. For individual provinces, lottery revenue is a meaningful line item — often representing 2–4% of total provincial revenue.
What About Scratch Tickets Specifically?
Scratch tickets are part of the overall lottery revenue pool — there's no separate accounting published for instant tickets versus draw games. But the same economics apply: after prizes are paid out (typically 55–65% of ticket sales go to prizes, depending on the game) and operating costs are covered, the margin flows back to the provincial government.
On a $5 scratch ticket, you might roughly expect: $2.75–$3.25 going back to prizes (on average, across the entire print run), $0.50–$0.75 covering retailer commissions and operating costs, and $1–$1.75 ultimately becoming provincial revenue. The exact numbers vary by game and province, and lottery corporations don't publish per-game margin data.
What we do publish at Scratchers Edge is prize remaining data — which tells you something the headline odds can't: how the prize pool on a specific ticket looks right now, not just what it looked like when the game launched.
Sources
- OLG Annual Report 2024–25 — Ontario Lottery and Gaming Corporation
- Where the Money Goes — BCLC
- BCLC 2024/25 Annual Service Plan Report
- WCLC Annual Report 2025 — Western Canada Lottery Corporation
- Loto-Québec Annual Report 2024–25