The Saskatchewan Liquor and Gaming Authority (SLGA) will be auctioning off its liquor licenses in February as the stores close, giving businesses the opportunity to secure the right to sell alcohol in their establishments.
“The licences are in high demand because people see opportunity,” said Shawn Moen, CEO of 9 Mile Brewery in Saskatoon.
The Saskatchewan government announced in 2022 that it would be closing all SLGA stores in the province, with plans to put the money elsewhere.
“Should we be investing in coolers of alcohol, or should we be investing in a highway?” said SLGA Minister Lori Carr.
Online auctions for the SLGA permits will be held from Feb. 6 to Feb. 15. Regina, Saskatoon and Prince Albert currently have more than one SLGA location in the city, meaning more than one permit will be available in the area. Thirty-five permits will be auctioned off.
“The whole point of this is that the retail stores that the government owns at this point in time, when you put them all together, eventually you are going to be losing money,” said Carr.
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“We would have to put a lot of money into refurbishing these stores to bring them up to date. That money can be better spent on health-care services, social services highways, name your need in the province.”
Online bidders are required to provide a $5,000 deposit to participate in the auction and must meet all qualifications for holding a retail store permit.
After making the winning bid, the winner must pay a bidder’s premium fee of up to $750 and a $525 permit application fee. The remaining annual fees will vary depending on the location of the business and surrounding competition.
“I think a lot of people are asking themselves, ‘Is this what I voted for?,'” said NDP SLGA critic Nathaniel Teed. “Nobody asked for the Sask. Party to sell off profitable liquor stores that pay for our hospitals and schools or to lay off 400 workers in the middle of an affordability crisis. With this important stream of revenue lost, I fear the Sask. Party government will continue to increase taxes and hike power and energy bills again just to pay for their bad financial decisions.”
The sale will include the liquor permit only and not provide the winner with the previous building used by the SLGA.
If the bidder does not place the highest bid, they will receive their deposit back if they show “good character,” which the SLGA described as being able to provide a clean criminal record check.
“The licensing approach with SLGA has evolved considerably over the years,” said Moen. “We started in 2015 and at that time a number of the processes needed to be feathered out. It has become much more robust in terms of product safety, in terms of monitoring good business practices and really emphasizing a high commitment to quality.”
Carr said the province has been making less money each year from SLGA stores, and predicted that by next year, the province would officially be losing money.
The first SLGA store to close is scheduled for late January.
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