Online gambling companies have lobbied the British Columbia government for something similar to what Ontario has and Alberta plans to have: a regulated market private-sector competitors can join.
Key takeaways
- Online gambling companies have lobbied B.C. government officials for “the creation of a regulatory regime for internet gaming.”
- There's no indication yet B.C.'s NDP government is interested in a competitive iGaming market but it's at least “open” to talking about it, according to one industry leader.
- Ontario is the only Canadian province that lets multiple private-sector operators offer online gambling, although Alberta is working toward a similar regulatory system.
The B.C. government has given no public indication it's seriously considering or interested in a competitive iGaming market, and there's no guarantee it ever happens.
At the moment, the only provincially regulated option in B.C. is the British Columbia Lottery Corp.’s PlayNow platform.
Even so, B.C. lobbying records suggest conversations about adding some private-sector competition to the mix have happened this year. Those records also highlight the industry's interest about opening up Canada’s third-most populous province.
“Our objective is to engage British Columbia policymakers in a discussion about benefits of a proper regulatory regime that channels the vast majority of online play through a regulated model rather than the sliver of activity captured by the monopoly-only system,” said Troy Ross, president of TRM Public Affairs, on behalf of the Canadian Online Gaming Alliance (COGA).
COGA is a non-profit trade group. However, according to the B.C. lobbyist registry, the alliance's affiliates include companies connected to Entain PLC (a joint owner of BetMGM), bet365, and online gambling technology company Apricot (which has ties to Betway-owner Super Group).
According to the provincial registry, the alliance’s lobbying efforts in B.C. include “educating [officials] about the internet gaming industry and advocating for the creation of a regulatory regime for internet gaming.”
If at first you don't succeed...
Similar work has happened in Canada for years, and paid off in Ontario (the most populous province) and appears to be paying off in Alberta (the fourth-most populous province).
Ross said COGA “has led the lobby for Canadian governments to regulate iGaming” for the past 20 years.
“The evidence from Europe, the USA, South America, and the province of Ontario is clear: regulatory regimes are infinitely superior to monopoly alone because they capture close to 100% of the play compared to the 20% market capture by lotteries,” Ross added. “Regulation provides consumer choice, consumer protections, and responsible gaming features for nearly 100% of the players. That much larger market capture drives hundreds of millions of dollars of new tax revenues to provincial treasuries.”
Whether these arguments persuade lawmakers to shake up the B.C. sports betting market remains to be seen.
They have, however, resonated in Ontario and Alberta, with the latter passing legislation just this past week that paves the way for a competitive iGaming market in the Western Canadian province.
Interesting PointsBet included both Alberta and British Columbia in the "opportunity" it sees in Canada in its latest investor presentation.
— Geoff Zochodne (@GeoffZochodne) February 26, 2024
AB has been contemplating an iGaming market similar to Ontario's for months. These public BC ambitions are new.https://t.co/LqN6DhK6vN pic.twitter.com/fzIQUSkYgU
It's something of an open secret in Canada that the bulk of online gambling happens with companies that aren't regulated provincially.
In Alberta, for example, provincially regulated Play Alberta accounts for less than half of online gambling activity. Ontario once said approximately 70% of iGaming could be happening with "unregulated, grey market websites."
With that in mind, Ontario launched a competitive iGaming market in 2022, and the province now has 50 authorized operators, including bet365, DraftKings, and FanDuel. Now, research suggests more than 80% of iGaming in Ontario takes place with provincially regulated operators.
After Bill 48's passage this week, Alberta could launch something similar to the Ontario market late this year or early next.
"We have worked hard to set up a framework to strike a balance between increasing consumer choice among regulated iGaming operators and taking steps to ensure our standards for social responsibility and public safety are met," Service Alberta and Red Tape Reduction Minister Dale Nally said on Wednesday.
COGA is not alone in eyeing B.C. either. PointsBet mentioned the province as a potential target for expansion, and BetMGM has a lobbyist registered in the province as well.
A slim majority
The New Democratic Party does have a majority of seats in the Legislative Assembly of British Columbia. However, it's a one-vote majority, which means the governing party can only pass its bills as long as it remains disciplined and present.
Authorizing private-sector gambling sites may not be a priority for the B.C. NDP. Again, though, they're at least listening.
“The government's very open to having a conversation about it,” said Paul Burns, president and CEO of the Canadian Gaming Association, during the NEXT conference in New York in March.
While the government may at least be listening to private-sector operators, it may also be listening to its lottery arm, which has been vocal with concerns about “grey” and “black” market iGaming operators.
Those operators (likely doing a good deal of business in B.C. already) may be regulated abroad or outside the province, but not by B.C. itself.
Lottery ticked off
BCLC raised concerns about this as a member of the Canadian Lottery Coalition, made up of government-owned lottery and gaming corporations from outside Alberta and Ontario. The coalition has highlighted the issue to Canadian lawmakers and through the courts, including in an online gambling reference in Ontario.
BCLC has also taken issue with operators it alleges are licensed in Ontario but still trying to take bets in B.C. They do so, the lottery claims, by nudging curious customers in the province toward international sites.
“PlayNow competes with these sites as well as illegal gambling operators from outside of Canada,” the lottery said in its 2025/26-2027/28 service plan. “Increased demand for advertising from these sites has driven up the cost of advertising and sponsorship opportunities that BCLC uses to enhance the brand’s presence and draw players to the only regulated option in our province. Alberta has indicated that it is considering licensing private sector online gambling sites, which could exacerbate these challenges.”
