B.C. regulators call gambling status quo unsustainable as provinces open online markets
British Columbia’s gambling regulator has said the province’s current online gambling situation is not sustainable, as other provinces move to license private operators. The remarks came at the New Horizons on Safer Gambling conference, organized by the British Columbia Lottery Corporation (BCLC) in Vancouver in early November.
Rachel Cheng, executive director for strategic policy at the Independent Gambling Control Office (IGCO), did not take a firm position on opening B.C.’s iGaming market. She was clear, however, that the status quo cannot hold while advertising aimed at Ontario and Alberta keeps reaching B.C. screens and a new provincial government prepares to take office.
Advertising spillover drives the B.C. debate
Advertising emerged as the main sticking point at the conference. Ads meant for audiences in Alberta and Ontario routinely reach British Columbians through sports broadcasts and social media.
“If [consumers] don’t know what’s the safest environment, that’s problematic for the regulator and the government,” Cheng said. She added that she was “hopeful” the provinces and the federal government could broker a solution together.
Molly Cormier, executive director of the Canadian Alliance for Regulated Gaming (CARG), framed the issue more broadly. “What is needed is a mindset shift in our industry from these being provincial issues to consumers engaging with an increasingly national marketplace,” she said. CARG represents provincial lottery corporations outside Alberta and Ontario, and it supports Bill S-211, federal legislation that would direct Ottawa to create a nationwide framework for sports betting, including tougher limits on sports betting advertising.
Former Atlantic Lottery Corporation vice-president Mike Randall, now an industry consultant, called it “a national conversation we need.”
A new B.C. government weighs its options
Senior civil servants in the B.C. Ministry of Finance are watching developments elsewhere in Canada. They are preparing for the possibility that the incoming government will call for reform.
B.C. elected a Conservative government in October, its first in nearly 100 years. Ministers are due to be appointed later in November, with mandate letters to follow a few weeks after that. Premier-designate Lorne Doerkson has not stated a position on gambling reform, though the Conservatives have pledged to reduce the province’s growing budget deficit.
Tax revenue was a draw in both Ontario and Alberta.
Alberta forecasts an extra $109 million for the province in its first full calendar year of the open market, and it reported gross gambling revenue (GGR) of C$122.1 million in its first three months of open licensing.
Quebec and New Brunswick reconsider their monopolies
It took six years for a second province to follow Ontario and admit private operators. Since Alberta launched its market in July, the pace has picked up across the country.
After Quebec’s October election, both the largest and second-largest parties in the province said they are committed to ending the Loto-Québec monopoly. That could open the market to other licensable operators.
New Brunswick has announced plans to explore how it might re-regulate its own market. “Online gaming is continuously evolving and the number of options, regulated and unregulated, continues to grow,” Finance Minister René Legacy said. Officials there have not committed to an approach, though licensing on the Alberta and Ontario model is one option under consideration.
“How it plays out in New Brunswick is going to be a huge learning for the rest of Canada,” Cheng said.
Vixio forecasts for an open B.C. market
Vixio Regulatory Intelligence presented forecasts for a fully regulated B.C. online market alongside per-capita spending figures. The numbers below come from Vixio’s Canadian Forecasting Dashboard and its head of data, Daniel Stone.
