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2013-14 Annual Report Annual Report Manitoba Lotteries Annual Report Honourable Ron Lemieux MINISTER RESPONSIBLE FOR LOTTERIES Room 203, Legislative Building 450 Broadway Winnipeg, MB R3C 0V8 September 22, 2014 Dear Honourable Minister: I have the honour to present you with the annual report of the Manitoba Lotteries Corporation for the fiscal year ended Amalgamation of Manitoba Lotteries with March 31, 2014. Respectfully submitted, The Manitoba Liquor Control Commission (originally signed by) 1 Amalgamation of Manitoba Lotteries with On April 1, 2014 Manitoba Lotteries Corporation merged with the Manitoba Liquor Control The Manitoba Liquor Control Commission Tannis Mindell Commission (MLCC) with The Manitoba Liquor and Lotteries Corporation Act coming CHAIR, BOARD OF DIRECTORS 2 Vision, Mission, Values, and Strategic Pillars Unityinto effect. The regulatory activities of the MLCC transferred to a new regulatory agency, 3 Where the Money Goes the Liquor and Gaming Authority of Manitoba, which also absorbed the Manitoba Gaming 4 Message from the Chair Control Commission. 5 Message from the President & CEO The 2013/14 fiscal year occurred prior to the Throughout 2013/14 Manitoba Lotteries and the 6 Customers proclamation of the new legislation, and is therefore MLCC conducted operations collaboratively, guided being reported separately for Manitoba Lotteries and by the vision, mission and values developed for the 7 Effectiveness the MLCC. Please refer to the annual report of the new merging corporation. This fiscal year saw the 8 Responsibility MLCC for its 2013/14 fiscal year. additional development of business pillars and goals to provide strategic direction. This annual report is 11 Employees Manitoba Lotteries operates Club Regent Casino and structured around the four strategic pillars of the McPhillips Station Casino in Winnipeg, as well as 12 Board of Directors & Executive Management Manitoba Liquor and Lotteries Corporation as they Video Lotto and PlayNow.com in Manitoba. It is the pertain to gaming operations. 14 Management Discussion and Analysis exclusive supplier of breakopen tickets and bingo 24 Highlights paper in the province and also distributes and sells tickets for lotteries operated by the Western 26 Consolidated Financial Statements Canada Lottery Corporation and the Interprovincial 27 Management Report Lottery Corporation. 28 Independent Auditors’ Report 32 Notes to Consolidated Financial Statements 2013/14 ANNUAL REPORT 1 Annual Report FOR THE YEAR ENDED MARCH 31, 2014 (IN MILLIONS OF CANADIAN DOLLARS) Where theAllocation Money to the Province of Manitoba Goes Vision Strategic Pillars 278.1 (Education, Health & Other Government Programs) To exceed customer expectations while supporting Customers our communities. Maintaining satisfied customers and increasing our 100.8 Commissions & Contributions Mission customer base. Paid to Siteholders Effectiveness Innovative and responsible delivery of quality products Delivering profitable growth and quality products and entertainment, generating revenue for Manitoba. Salaries & Benefits while embracing innovation. 99.7 Values Responsibility Committed to business integrity, community 103.2 Other Cost of Sales & Expenses Importance of People investment, environmental sustainability practices, Foster a positive and diverse workplace and work and encouraging the responsible use of our products together towards our common goals. and services. 6.4 Payments to Other Levels of Government Responsibility Employees Demonstrate responsible business, social, and Building a new shared culture with an engaged environmental practices. and diverse workforce that is knowledgeable, in a respectful and safe workplace. 6.1 Supporting Our Communities Integrity and Fairness Be respectful, ethical and fully accountable for our actions and decisions. 5.3 Responsible Gaming Initiatives Service Excellence Provide superior service to our customers, partners and co-workers. Total Revenue & Other Income Innovation (Includes revenue, share of profit of 599.6 Western Canada Lottery Corporation Learn from our experiences, embrace change and and interest income) encourage innovation. Responsibility 2013/14 ANNUAL REPORT 2013/14 ANNUAL REPORT 2 3 Annual Report Message From the President & CEO I am pleased to report on the final fiscal year of operations for Manitoba Lotteries. The merger of Manitoba Lotteries with the Manitoba Liquor Control Commission (MLCC) was announced in April 2012. Legislation officially ushered in the new Manitoba Liquor and Lotteries Corporation Message From the Chair on April 1, 2014. It is a pleasure to report on the results of 2013/14 for Manitoba In 2013/14 Manitoba The achievement is evidence of the value we place Messages Lotteries delivered in our social responsibility programming. We are Lotteries, a corporation that makes significant contributions to our $278.1 million to the continually enhancing our employee training, player community through revenue generation, job creation, economic Province of Manitoba in education, stakeholder engagement, research spinoffs, community partnerships and employee volunteerism. support of priority government programs such as support and our other areas of social responsibility. health care, education, and community and social The certification reinforces among all of our I am pleased to report that The two percent commitment is a bright legacy of services. We achieved this while further integrating employees that social responsibility is central to as of April 1, 2014, Bill 43, Manitoba Lotteries, which had voluntarily supported the operations of Manitoba Lotteries and the MLCC. our corporate mission. The Manitoba Liquor and responsible gaming initiatives in this fashion for It has been a pleasure to work alongside such Last year we also strengthened and diversified our Lotteries Corporation Act several years. The new Act extends this investment committed employees throughout the entire merger products to meet the changing preferences of our and Liquor and Gaming to liquor social responsibility and enshrines the process. Over the past two years, employees have customers, and the shifting landscape of the industry. Control Act, was enacted through legislation, and commitment into the fabric of the new corporation. worked tirelessly to ensure that the integration Our expertise in casino management and development came into effect for the 2014/15 fiscal year. We look forward to continuing our work under proceeded with minimal business interruption. was instrumental in the successful launch of the that mandate. This was an important and significant milestone of Shark Club Gaming Centre, located in the heart of Early in the fiscal year, Manitoba Lotteries and the the merger journey, and would not have been possible On behalf of the Board, I would like express my sincere Winnipeg’s Sports, Hospitality and Entertainment MLCC embarked on a major effort to consolidate without the combined efforts of members of the thanks to President & CEO Winston Hodgins, the District. PlayNow.com introduced the convenience of common departments. This endeavor saw more than Executive Management Committee and many other Executive Management Committee, and all employees purchasing regional and national lottery games online 400 employees co-located from various locations. individuals who contributed towards its development. for their contributions in making 2013/14 a success. and prepared for a launch of peer-to-peer bingo in The transition set the pace for the remainder of the I am also pleased to report that by the end of fiscal I look forward to the year ahead as we begin a 2014/15 that will connect Manitobans with players in year as employees from both organizations quickly year 2013/14 Manitoba Liquor and Lotteries realized new era of providing excellence and value to the British Columbia and Quebec. integrated their respective functions and workplace an accumulated savings of $6.1 million related to the people of Manitoba. cultures. The final step to fully integrate all management LOTTO 6/49 was re-launched with a guaranteed merger process. and administrative functions will be achieved when a $1 million prize, a larger base jackpot and other So, for the efforts invested in both of these considerable new corporate headquarters is identified. The first steps improvements. In support of our recently refreshed accomplishments, I wish to extend my sincere thanks (originally signed by) towards that goal have been initiated recently through a video lottery terminal (VLT) network we consulted and congratulations on behalf of the Board. Tannis Mindell search for a suitable downtown location in Winnipeg. extensively with players, VLT site owners and our vendors to further refine the customer experience. There is no doubt that the new legislation provides an CHAIR, BOARD OF DIRECTORS Several merger-related tasks remain for Manitoba appropriate and forward-looking foundation on which Liquor and Lotteries including the unification of In closing, I would like to thank our Board, our Executive to build a successful future for the socially responsible electronic records management systems, and human Management Committee and our employees for their sale of liquor and gaming products in Manitoba. resource matters such as harmonizing benefit plans. ongoing enthusiasm, dedication and commitment this The Board worked with the Province of Manitoba so We are working proactively with unions and employees past year. Our accomplishments and achievements that the new Act included a requirement that
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