The government of B.C. says it is introducing new gambling regulations to curb money laundering and fraud in the province.
The gaming control act, passed in the fall of 2022 and which will come into effect on April 13, 2026, will address weaknesses in the provincial regulatory framework, the government said, adding it will also cover online gambling and “evolving gaming technologies.” The changes stem from recommendations by the Dirty Money report by Peter German in 2018 and the Cullen Commission of inquiry into money laundering in 2022.
Public Safety Minister Nina Krieger said money laundering was a serious issue in B.C. and strong oversight was needed to prevent it.
“The new act creates a strong regulatory framework so that the Independent Gambling Control Office, our new independent regulator, can more effectively address criminal activity and protect people in B.C.,” Krieger said.
The act will also clarify the roles and responsibilities of the new regulator and the B.C. Lottery Corporation. It will establish a “standards-based” regulatory model, and money laundering will be the responsibility of the regulator. The regulator will also have the authority to issue directives to the B.C. Lottery Corporation without having to seek the consent of the minister.
The changes mean that the Gaming Policy and Enforcement Branch is being transitioned into an independent gambling control office, which will oversee gambling activities in the province including charitable gambling and horse-racing. A general manager at the new control office will make and enforce regulations, the government said.
The government said having the separate office and manager will help prevent and detect “problem gambling” and “unlawful activity,” such as money laundering through online portals and in casinos.
The independent gambling control office will administer the Gambling Support BC program, which provides outreach and treatment services to anyone impacted by gambling.
The act also updates the provincial gambling fee structure, which has not been updated in 15 years, according to the news release.
The province said that changes were made after consultation with industry stakeholders, and will ensure that the fees are in line with costs to regulate the industry. The changes will include an increase of fees for registration and licensing, new fee categories, and the creation of revenue-based fees for organizations.
It said that the fee increase reflects inflation and the costs of regulation, such as administrative costs for background checks, enforcement actions, and monitoring compliance.
Fees for gaming facilities, like casinos and bingo halls, will now be based on revenue, with facilities who have a revenue up to $100 million will see a 20 percent increase, while bingo halls will see a 25 percent increase.
