Toronto

Lotto sales could be coming to The Beer Store, LCBO

Convenience stores will soon be able to sell beer and wine in Ontario. As part of that change, the province is letting The Beer Store sell lottery tickets. That has some small business owners concerned.

Small business owners say change could cut hurt revenue, just as they're about to be able to sell alcohol

Exterior of a Beer Store location in Thunder Bay
While beer, wine and ready-made cocktails will soon be available at Ontario convenience stores, lottery tickets could soon be sold at The Beer Store. (Jeff Walters/CBC)

Beer and wine will soon be sold in Ontario corner stores, and now lotto sales might be coming to the Beer Store, something that worries some small business owners.

As first reported by CityNews, the province is allowing The Beer Store to sell products beyond beer and cider, including lottery tickets.

Ontario recently announced convenience stores, big box outlets and some gas stations will be able to sell beer, wine and other ready-made drinks starting in September. 

Included in the framework for that change, the province says it "shall not prohibit [The Beer Store] from selling any other product, including lottery tickets."

It's unclear whether The Beer Store will take advantage. 

In an email, spokesperson Laryssa Waler only said it's now a possibility.

Waler didn't provide further comment, but pointed to a May 24 Beer Store release that said the transition to expanded alcohol sales will enable The Beer Store to "successfully compete with additional retail channels."

That has some people worried.

A man behind a corner store counter speaks into a reporter's microphone
Keyur Shah owns a convenience store in Toronto. He says he's worried about lost revenue if Beer stores start selling lottery tickets. (CBC)

Keyur Shah, who owns a New York News franchise in Toronto, says he'd hoped selling alcohol in the fall would boost business. Now, he's worried new beer sales might not make up for any lottery ticket revenue that could be lost to The Beer Store.

"It's a big concern, because lottery ticket sales are the backbone for the convenience store," he said.

NDP critic Catherine Fife says that goes against what Premier Doug Ford promised, which is that the change to beer and wine sales would help people like Shah.

"He's doubled down on a policy which actually will create more competition for convenience stores, small mom and pop organizations," she said Wednesday.

The Beer Store already sells some products besides beer and cider, like ice bags and merchandise. The retailer is still unable to sell tobacco, cannabis, wine and liquor.

In a statement, Ministry of Finance spokesperson Colin Blachar said allowing lottery ticket sales at The Beer Store "gives it new abilities to grow its business." The Beer Store will have to go through the same process as all other lottery retailers, he said.

WATCH | Ford government expanding Ontario alcohol sales: 

Alcohol sales expanding to some Ontario corner stores by September

6 months ago
Duration 2:47
Doug Ford’s government is speeding up its timeline for allowing convenience stores in the province to sell alcohol. As CBC’s Lorrenda Reddekopp reports, Ontario is also giving the owners of the Beer Store more than $200 million as part of the deal.

The province initially planned to expand beer and wine sales to convenience stores, big box outlets and some gas stations in 2026, after its Master Framework Agreement with The Beer Store expired. But the Ford government announced this year the change would come early.

Opposition parties have already been critical of the accelerated schedule, which could cost Ontario at least $225 million, largely in payouts to The Beer Store.

LCBO, province differ on lottery sales

LCBO stores may also be able to expand their products beyond alcohol.

In a statement, the LCBO communications team said nothing prevents LCBO locations from selling lottery tickets, but the Crown corporation has no plans to do so at this time.

The Ministry of Finance said it has no plans to allow the LCBO to sell lottery tickets.

Lottery tickets are not currently sold at either LCBO or Beer Store locations, OLG spokesperson Tony Bitonti said in an email. But Bitonti said OLG "is constantly evaluating opportunities to expand points of distribution."

With files from Jean-Loup Doudard