B.C. Implements New Gambling Regulations to Combat Money Laundering

British Columbia has announced significant changes to its gambling regulations aimed at combating money laundering and other illegal activities. The new measures include the establishment of an independent gambling enforcement office and an updated regulatory framework set to take effect on April 13, 2026. The Public Safety Ministry revealed these plans on December 2, 2023, emphasizing the need for enhanced oversight in the gambling sector.

Public Safety Minister Nina Krieger stated that the forthcoming Gaming Control Act is designed to create a robust regulatory environment. This framework will empower the new Independent Gambling Control Office to more effectively tackle criminal activities in British Columbia. “This act creates a strong regulatory framework,” said Krieger, ensuring that the office can “address criminal activity and protect people in B.C.”

The new act, passed in fall 2022, responds to recommendations from two independent reviews: the German Report and the Cullen Commission. Key suggestions from these reviews include the formation of an independent gambling regulator, the clarification of roles between the regulator and the British Columbia Lottery Corporation (BCLC), and a shift to a standards-based regulatory model. The regulator will also be responsible for addressing money laundering without needing ministerial consent for directives.

Transition to Independent Gambling Control Office

The transition to the Independent Gambling Control Office is expected to enhance oversight of gambling activities managed by the BCLC, as well as charitable gambling and horse racing in the province. The new office will appoint a general manager responsible for making and enforcing gambling regulations. This initiative will introduce requirements to help prevent and detect not only problem gambling but also unlawful activities, including money laundering, in casinos and online platforms.

Additionally, the office will continue to support the province’s Gambling Support BC initiative, which offers outreach and treatment services for individuals facing gambling issues. Both the new regulatory framework and the office are slated to begin operations on April 13, 2026.

Updated Fee Structure to Reflect Regulatory Costs

The new Gaming Control Act also includes a revised fee structure that has not been updated in over 15 years. The province plans to implement three key changes: increasing registration and licensing fees, creating new fee categories, and introducing revenue-based fees. These adjustments are designed to align fees with the actual costs of regulation, including compliance monitoring and enforcement actions.

Under the new fee structure, smaller organizations and facilities will pay significantly lower fees than larger ones. Currently, all organizations that raise over $250,000 pay a flat fee of $50. However, the upcoming changes will set fees based on revenue levels, resulting in a tiered system. For example, organizations that generate less than $5,000 will pay $25, while those earning between $50,000 and $250,000 will be charged $250. This aims to ensure that fees reflect the financial landscape of the gaming sector.

These changes were developed following consultations with industry stakeholders, ensuring they meet both regulatory needs and the realities of the gambling environment in British Columbia. The comprehensive approach signifies the province’s commitment to creating a safer gambling landscape while enhancing the integrity of its regulatory framework.