B.C. Grapples with Online Gambling Surge Amid Declining Lottery Revenues

British Columbia’s gambling landscape is undergoing a dramatic transformation, with a surge in online gambling activity impacting traditional revenue streams and raising concerns about regulation and responsible gaming.

The legalization of single-event sports betting, while intended to boost revenue, has instead highlighted the growing challenge posed by “grey market” online gambling sites operating outside the province. These platforms, often based in other jurisdictions like Ontario, are aggressively competing for their market share, investing heavily in advertising and sponsorships, eroding the competitive edge of B.C.’s PlayNow.com platform.

The Online Onslaught: Competition and How B.C. Lottery Revenue is Declining

The B.C. Lottery Corp. (BCLC) is facing a complex situation. While projecting revenue growth in its online division, driven partly by single-event vetting, it acknowledges the stiff competition from external operators. These competitors, some licensed in other provinces, are leveraging national partnerships with media companies and sports leagues, making it increasingly difficult for PlayNow.com to secure valuable advertising and marketing opportunities within B.C.

This increased competition in online gambling in British Columbia translates to higher costs for PlayNow.com to maintain its brand presence and attract players to the province’s only legal online gambling platform—the one that generates revenue from commercial gambling in B.C. for essential public services.

Ways to Play and Where to Play

In British Columbia, adults 19 and older can gamble at casinos (offering table games like poker and slots), bingo halls, community gaming centers, horse racing tracks (with five locations and teletheatres province-wide), and through lottery tickets or online at the province’s only legal platform, PlayNow.com.

Licensed gambling events, such as 50/50 draws, are also permitted. Gambling and lottery revenue in British Columbia fund essential services like healthcare and education and support local economic development.

The Accessibility Factor: Increased Risk of Addiction

The online gambling surge in British Columbia also raises broader concerns. Experts like Luke Clark, director of UBS’s Centre for Gambling Research, point to the “constant accessibility” afforded by smartphones as a key driver of the online gambling boom. While this ease of access is convenient, it increases the potential for gambling addiction and related harms, including mental health issues and financial problems.

Clark emphasizes the need for more robust regulation to address these risks, particularly youth gambling and money laundering. The rapid evolution of the online gambling market makes it difficult for regulators to keep pace, leaving potential gaps in responsible gambling and integrity controls.

Advertising and Regulation: A National Concern

The influx of online gambling ads, particularly following Ontario’s move to private online betting, has further amplified these concerns. Experts like Nigel Turner from the Centre for Addiction and Mental Health argue that such advertising normalizes and promotes gambling, potentially leading to increased problem gambling, especially among young people who may be drawn to unregulated platforms.

The BCLC acknowledges the challenge posed by illegal online gambling sites, which siphon off potential revenue from commercial gambling in B.C. and create an uneven playing field. They are working with other provincial lottery corporations to combat misleading advertising and collaborating with the Gaming Policy and Enforcement Branch on updated online gambling standards.

Balancing Growth and Responsibility: The Path Forward

The BCLC is also grappling with declining lottery revenues and facing challenges in its casino operations. While implementing measures like buy-in limits and enhanced anti-money laundering software, the corporation recognizes the need for ongoing vigilance and adaptability in this rapidly changing environment.

The future of gambling in B.C. hinges on finding a balance between capitalizing on the growing online market while mitigating the associated risks and ensuring that revenue generated benefits the province rather than flowing to unregulated or out-of-province operators.

Conclusion

The surge in online gambling in British Columbia presents a complex challenge for the province. While offering potential revenue streams, the rise of “grey market” operators and the ease of access through smartphones raise significant concerns about competition, responsible gaming, and regulatory oversight.

British Columbia must find a delicate balance between capitalizing on the growing online market and mitigating the risks of addiction, youth gambling, and money laundering. This requires a multi-faceted approach, including robust regulation, increased collaboration between provincial gambling corporations, and a commitment to responsible gambling initiatives.

The future of B.C.’s gambling landscape depends on its ability to adapt to this rapidly evolving digital age. This means ensuring that the benefits of online gaming outweigh the potential harms and that revenue generated supports the province’s vital public services.