British Columbia at the Threshold of iGaming Reform

Lee Hills. CEO

With Ontario’s regulated market now well established and delivering billions in gross gaming revenue, the call for British Columbia to modernize its own system is growing into an increasingly practical and political reality.

Unlike Ontario, British Columbia currently maintains a government monopoly on online gambling through PlayNow, operated by the British Columbia Lottery Corporation. This model has historically provided both strong consumer protections and reliable public revenue. However, it is now being tested by changes in player behaviour, increasing demand for product innovation, and growing pressure from private industry.

Ontario’s success story has changed the conversation. Since launching its regulated market in April 2022, Ontario has licensed more than 40 operators and seen iGaming revenue surge past 3.2 billion Canadian dollars. It has created a thriving competitive environment while retaining strong oversight, a fact that has become difficult for other provinces to ignore. The Ontario model showed that regulation and competition can coexist effectively. It also proved that player safety can be enhanced by a more open framework.

Despite this success, we must also acknowledge valid criticisms, including Ontario’s struggle to prevent unlicensed operators from maintaining a foothold. Official sources estimate that between 16 and 20 percent of online wagering still occurs on unregulated platforms. But given how these figures are collected, and the natural reluctance of survey respondents to admit using illegal sites, the real number is likely much higher. Industry operators have also raised concerns about high compliance costs and complex oversight, which may deter participation and limit market efficiency. In response, the province has launched a formal review to address these challenges.

In addition, several First Nations communities have argued that Ontario’s iGaming rollout lacked meaningful consultation and has negatively impacted land-based casino revenues, threatening jobs and local economic development. These critiques highlight that, despite its measurable success, Ontario’s framework still faces ongoing issues around regulatory burden, market leakage, and social equity.

Even so, the broader benefits of a regulated market remain clear, particularly in terms of tax revenue, job creation, and improved consumer protection.

In British Columbia, industry stakeholders including global operators and Canadian associations like the Canadian Online Gaming Alliance are urging the province to open its doors to regulated competition. These organisations argue that a broader market would not only increase public revenue and consumer choice but also help migrate players away from the grey market, where regulatory standards vary depending on where an operator is licensed.

There is a growing understanding that consumers are already voting with their clicks. Offshore operators are drawing Canadian players with wider offerings, better odds, and more engaging user experiences. Meanwhile, provinces like Alberta and Quebec are exploring their own regulatory frameworks, adding pressure for British Columbia to act.

However, any transition must be managed responsibly. Ontario’s success was not the result of deregulation, but of deliberate, structured oversight. British Columbia would need to follow a similar path; prioritising licensing, compliance, responsible gambling, and enforcement. It would also require collaboration with regulatory technology providers and coordination with agencies such as FINTRAC to maintain high standards around anti-money laundering and financial transparency.

From a compliance and risk perspective, the opportunity is as significant as the challenge. A regulated market in British Columbia could foster innovation, attract new partnerships, and accelerate the adoption of technologies that make gambling both safer and more transparent. For policymakers, this is a chance to shape a modern regulatory framework that is progressive, resilient, and sustainable.

It is also worth noting that the British Columbia Lottery Corporation employs approximately 900 staff members across its operations, which include the Lottery, Casino, and e Gaming (PlayNow) divisions. While the exact number of employees dedicated to the e Gaming division is not publicly disclosed, it is reasonable to assume that any opening of the market would require careful planning to protect existing jobs and support workforce transition.

For now, the monopoly remains. But with market forces, political momentum, and national precedent all shifting, British Columbia stands on the threshold of change. The province does not need to reinvent the wheel. It needs to build on the lessons already learned and tailor them to local realities.