Preventing money laundering through stronger gambling regulation

THE new gaming control act will be coming into effect on April 13, 2026, establishing an updated regulatory framework and new regulations for the gambling industry to prevent illegal activities, such as money laundering and fraud.

“Money laundering is a serious issue in our province and across the country, and strong oversight is needed to prevent it,” said Nina Krieger, Minister of Public Safety and Solicitor General, on Tuesday. “The new act creates a strong regulatory framework so that the Independent Gambling Control Office, our new independent regulator, can more effectively address criminal activity and protect people in B.C.”

The act was passed in fall 2022, delivering on a commitment to address weaknesses in B.C.’s regulatory framework that hindered an effective response to money laundering, while addressing other issues like problem gambling. The act accounts for online gambling and evolving gaming technologies, while addressing recommendations from two independent reviews: the German Report and Cullen Commission. The recommendations include:

* creating an independent gambling regulator

* clarifying the roles and responsibilities between the regulator and the BC Lottery Corporation (BCLC)

* establishing a standards-based regulatory model

* making money laundering the responsibility of the regulator

* allowing the regulator to issue directives to BCLC without the consent of the minister

Transitioning to a new independent office

Alongside the new act, the Gaming Policy and Enforcement Branch (GPEB) will be transitioning to an independent gambling control office. The new office will work to maintain the overall integrity of gambling in B.C. by providing regulatory oversight of gambling conducted and managed by the British Columbia Lottery Corporation, charitable gambling, and B.C.’s horse-racing industry.

The independent gambling control office will have a general manager who makes and enforces regulations in gambling and horse racing. This allows for new requirements that will help prevent and detect problem gambling and unlawful activity, including money laundering, in casinos and online.

In addition, the independent gambling control office will continue to administer the Gambling Support BC program, which delivers outreach and treatment services to anyone who is hurt from gambling. The IGCO will also take effect April, 13, 2026.

The act includes regulatory changes to the gambling industry’s fee structure, which had not been updated in more than 15 years. These changes were made after consultation with industry stakeholders and to ensure fees align with costs to regulate the gaming sector.

* Increasing fees for registration and licensing: Several fees will increase based on inflation and to better reflect the costs of regulation. This includes administrative costs, such as conducting background checks, supporting licensing applications, monitoring compliance and taking enforcement actions.

* Creating new fee categories: New classes will be added to reflect the expansion in recent years of BCLC’s online gambling platform, PlayNow.com.

* Establishing revenue-based fees: New fees for gaming facilities and charitable gaming events will be based on revenue, instead of a flat fee. This means organizations and facilities that bring in smaller amounts of money will pay less than those bringing in larger amounts.

The gaming control act will put policies in place to deter money laundering, encourage responsible gambling and ensure that B.C.’s gaming industry is well regulated and working for British Columbians.

Learn More:

* Learn more about gambling in B.C. here: https://www2.gov.bc.ca/gov/content/sports-culture/gambling-fundraising/gambling-in-bc

* Learn more about money-laundering in B.C. and read relevant reports here: https://www2.gov.bc.ca/gov/content/justice/anti-money-laundering

* Learn more about the Independent Gambling Control Office transition here: https://news.gov.bc.ca/releases/2019AG0128-002393

BACKGROUNDER
Details of the gaming control act

Gaming licensing and registration fee increases

The gaming control act includes regulatory changes to the gambling industry’s fee structure, which had not been updated in more than 15 years. The changes were made after consultation with industry stakeholders and to ensure fees align with costs, to regulate the gaming sector.

In determining the fee increases, the Gaming Policy and Enforcement Branch considered a combination of administration costs, jurisdictional comparisons, and inflation since the last time fees were adjusted.

The fees take effect April 13, 2026.

New fees for gaming facilities

* Currently, gaming facility fees are based on the number of slot machines in a facility; however, this does not accurately reflect the costs of regulation.

* The new gaming facility fees will be based on gaming facility revenue to more effectively cover regulatory costs.

* Fees for revenues up to $100 million will be increasing by 20%. Fees for bingo halls will be increasing by 25%.

New fees for gaming suppliers and other gaming services providers

* The current classes for gaming suppliers were last updated in 2010 and do not reflect the evolution of electronic gaming devices, nor consider online gaming services and supplies.

* Classes will be adjusted to reflect the supplies provided and fees will increase to more effectively cover regulatory costs, including the costs required to monitor online applications and software updates for gaming integrity.

* Fees for other gaming services providers had also not been updated in more than 10 years, while regulatory costs have increased substantially. Fee increases for this category are intended to align with government’s guidance for cost recovery.

New fees for gaming workers

* The fee for gaming worker registration had not been updated since 2007 and the cost of conducting background investigations currently exceeds the fees that are charged for registration and renewal.

* The increased registration fee will be more comparable to the fee charged for other regulated industries, such as security guards.

* Fees for gaming workers are going up from $45 every three years to $150 every three years. By comparison, fees for a three-year security licence are $240.

New fees for horse racing participants and facility operators

* The fee for horse-racing participants had not been updated since 2007, and the cost of conducting background investigations currently exceeds the fees that are charged for registration and renewal.

* Track-operator fees will increase from $5,000 to $6,285, and temporary track operator fees from $100 to $125 to account for inflation since they were last updated.

New fees for charitable gaming events

* The current operational costs of regulating charitable gaming events significantly exceed the revenue generated through fees across all licence classes, with the current fee structure recovers only about 14% of the costs to regulate.

* Fees will be increased to improve cost recovery to better support the sustainability of the charitable gaming-event licensing program.

* Additionally, a new fee structure based on projected revenue will improve equitability and mitigate adverse fiscal impacts on charitable organizations by ensuring that events that raise less money pay a smaller fee.

* Currently, charitable gaming events that raise significant revenue (e.g., over $250,000) pay the same $50 fee as those that raise substantially less revenue (e.g., $20,000).

* Under the new structure, events that raise the following revenues will pay:
* less than $5,000 will pay $25

* between $5,000 and $20,000 will pay $75

* between $20,000 to $50,000 will pay $150

* between $50,000 and $250,000 will pay $250

* more than $250,000 will pay $500