Ontario’s alcohol overhaul is costing taxpayers more than expected. The LCBO’s finances explain why

The Liquor Control Board of Ontario (LCBO) generated $1.8 billion for the province in 2025-26 , down $358 million from 2024-25 and $757 million from 2023-24 .

The decline follows the Ontario government’s 2023 decision to expand alcohol sales to grocery stores, convenience stores and other retailers.

The LCBO also incurred an estimated $33.4 million in costs associated with holding unsold American alcohol .

The provincially owned LCBO consequently generated $1.2 billion less for taxpayers over the past two years than its 2023-2024 results might have suggested.

That shortfall is five times larger than the $229 million previously forecast by Ontario’s Financial Accountability Office.

Meanwhile, private retailers have added $911 million in annual sales, whereas some LCBO stores may close.

For researchers like me who study the alcohol and cannabis industries and their impacts , this situation is intriguing.

But for Ontario taxpayers, the financial consequences are troubling.

Overhauling the market Two years ago , LCBO stores dominated Ontario’s alcohol retailing, accounting for 57 per cent of a $10.3-billion provincial market .

The organization also supplied 448 grocers that sold beer and wine at fixed prices.

Ontario Premier Doug Ford’s government began disrupting that arrangement in December 2023 .

In a news release, Ford promised to give consumers “ more choice ” by allowing convenience stores, grocery stores and big-box retailers to apply for alcohol retail licenses.

These retailers could sell beer, wine and ready-to-drink beverages like coolers while setting their own prices.

The expansion drew criticism from the union representing LCBO workers.