Provincial Treasurer, Hon. Patricia J. Mella, announced today that Executive Council at its meeting of yesterday, March 17, 1998, approved changes in Regulations to remove video lottery terminals (VLTs) from non-licensed sites, effective March 31, 1998. These regulatory amendments are consistent with government's policy announced in the Legislative Assembly last November to address public concerns about VLTs.
The Provincial Treasurer has announced a limited targeted compensation package to non-licensed siteholders operating video lottery terminals. This compensation is in recognition of the financial impact they will realize and is based on an increase in the rate of commissions paid to those siteholders who are losing VLTs but continue to sell traditional lottery products. Under this compensation package the commission paid on the first $200,000 of lottery ticket sales will increase on April 1, 1998 from 5% to 10% for a one-year period. On April 1, 1999, the commission will be reduced to 8.5% and further reduced to 7.0% on April 1, 2000. Commissions will revert back to the current 5% level on April 1, 2001.
The province realized that not all non-licensed siteholders retail traditional lottery products and consequently are unable to take advantage of the enhanced commission. However, it is anticipated that these siteholders will explore opportunities to retail other lottery products.
The Provincial Treasurer said the revenue losses to government will be partly recovered by reducing the percentage share of VLT revenues paid to licensed siteholders from 25 to 20%. The amended Regulations also includes a provision to make this change effective April 1, 1998.
The Minister also noted that all siteholders would be receiving information from the Atlantic Lottery Corporation with respect to the implementation of these regulatory changes.