Government report on British Columbia residents betting on unregulated gambling sites
B.C. residents betting billions on unregulated gambling sites, 2021 report found
A never-released government report says British Columbians may be gambling billions on unregulated online gambling sites, costing the province tens of millions of dollars in potential tax revenue.
A 2021 report compiled by H2 Gambling Capital for the provincial government estimated that British Columbia residents were wagering as much as $5.3 billion on unregulated online websites per year, with total gross revenues of more than $200 million — a figure the B.C. government believes has nearly doubled in the years since.
The gambling sector analysis also found the most-visited unregulated websites were major players in the global online gambling market, who have spent years lobbying the B.C. government to let them operate legally in the province.
Michael Thompson, the executive director of the B.C. Gaming Industry Alliance, which represents brick-and-mortar casinos in the province, noted the report also spoke positively about the province’s legally regulated online betting website, PlayNow.
He says this is evidence British Columbia should resist pressure to open up the market to private competitors.
“There are legitimate ways to capture this market that do not require that the government bend to the pressures of these multinational corporations,” Thompson said.
The report, though nearly four years old, contains some of the most detailed information collected about the extent of unregulated online gambling in B.C., a widespread problem Thompson said governments have largely failed to stop.
The H2 report suggests that hundreds of unregulated gambling websites operate in B.C. with relative impunity. The B.C. Lottery Corporation (BCLC) has said those actors range from established multinational companies to more dubious websites that government officials warn may be linked to organized crime.
A 2024 confidential note prepared by the BCLC notes these websites “pose risks related to money laundering, problem gambling behaviour, game integrity and effective age-of-majority controls.”
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