British Columbia Introduces New Gambling Regulations to Combat Money Laundering

The government of British Columbia has unveiled new gambling regulations aimed at preventing money laundering and enhancing oversight within the industry. Announced by the Public Safety Ministry on December 2, 2023, a new gaming control act will come into effect on April 13, 2026. This legislation establishes a robust regulatory framework intended to combat illegal activities, including money laundering and fraud.

Public Safety Minister Nina Krieger emphasized that the new act will create a “strong regulatory framework” enabling the forthcoming Independent Gambling Control Office to more effectively tackle criminal activity and safeguard the public. The act was passed in the fall of 2022 and responds to recommendations from two independent reviews: the German Report and the Cullen Commission. These reviews called for the establishment of an independent gambling regulator and a clearer delineation of responsibilities between the regulator and the British Columbia Lottery Corporation (BCLC).

Independent Office to Oversee Gambling Activities

The province plans to transition the existing Gaming Policy and Enforcement Branch into the new Independent Gambling Control Office, which will oversee gaming activities managed by the BCLC, charitable gambling, and the horse-racing industry in B.C. This office will feature a general manager responsible for creating and enforcing regulations related to gambling and horse racing.

The new office will also introduce measures designed to prevent and detect problem gambling as well as illegal activities such as money laundering in casinos and online platforms. Furthermore, the office will continue to manage Gambling Support BC, providing outreach and treatment services for individuals dealing with gambling-related issues. Both the regulatory office and the new act are set to take effect on April 13, 2026.

Revised Fee Structure to Reflect Regulatory Costs

In addition to the establishment of new regulatory frameworks, the act will amend the existing fee structure, which has not been updated in over 15 years. There will be three primary changes: an increase in registration and licensing fees, the creation of new fee categories, and the introduction of revenue-based fees.

The revised fee structure will adjust several fees based on inflation and align them with the actual costs of regulation. For instance, organizations generating less than $5,000 will pay $25, while those earning between $5,000 and $20,000 will face a fee of $75. Higher revenue brackets will see increased fees, with those generating between $20,000 and $50,000 paying $150, and those raising over $250,000 incurring a fee of $500. This new approach aims to ensure that smaller organizations are not disproportionately burdened by regulatory costs, as they will pay less than those with more significant revenues.

These regulatory changes were developed after consultations with industry stakeholders, reflecting the province’s commitment to both fostering a responsible gambling environment and maintaining compliance with evolving legal standards. By implementing these measures, British Columbia aims to strengthen its oversight of the gambling sector and enhance public trust in its regulatory practices.