BCLC In The News Again

The BC Lottery Corporation (BCLC) is in the news once again, just weeks after the announcement that the weekly limits for gambling on the BCLC website increased from $120 to $9,999 (see our writeup on it).

Global TV ran a story (see the video here, 2:30) on BCLC’s plans to become North America’s first government-owned online gambling site. Up until now, residents of BC were able to play games such as the lottery, Keno, and bingo on the BCLC website. Now, it is expanding to include casino-style games such as roulette, blackjack, poker, and slots.

For people that want to play these games online currently, they must use websites of companies located outside of North America, in countries such as Antigua, Costa Rica, and Gibraltar. The reason is that the governments of both Canada and the USA prohibit these companies from setting up shop here, but for two very different reasons.

In Canada, the government’s approach is much softer than in the USA, with the government working to protect their financial interests in the country’s gaming industry by participating through regulation. In the USA however, it is a much different story. While it is not technically illegal for US residents to gamble online using these offshore websites, it is extremely difficult to transmit money to these websites, which is a necessary prerequisite to play the games.

The BCLC – and the BC government – is clearly a leader in North America in recognizing the opportunity with online gaming. As the representative from BCLC states in the video, $87 million leaves the province annually by BC residents playing online casino games with websites located offshore. By offering similar gaming options, the BCLC will be competing directly with offshore websites in effort to keep some (or all) of these lost revenues in the province.

We are very supportive of the province’s decision to become a leader in government regulated online gaming. While critics quickly point to the fact that increased gaming options will lead to increased problem gambling, we are not so sure. With hundreds of alternatives only a few clicks away, a determined problem gambler doesn’t need the government to get quick and easy access to online gaming. However, with government-approved participation in the industry by BCLC, it can address these issues with funding for harm-reduction programs. And while we’re not going to get political by taking a side on the amount of funding that is made available, the fact that any funding is made available is more than is provided by the websites that BC residents are currently using for their online gaming needs. And that’s a step in the right direction.