The British Columbia government will make some major changes in the coming months to how it regulates gambling in the province, with the primary aim of cracking down on money laundering and other gaming-related fraud.
The Ministry of Public Safety and Solicitor General said in a statement that the new version of the Gaming Control Act, which passed recently, will create a new independent gambling regulatory body, split off from the Ministry’s Gaming Policy and Enforcement Branch (GPEB).
The new Independent Gambling Control Office (IGCO) will be charged with establishing “a standards-based regulatory model” for all land-based and online gaming in the province, including BCLC’s physical and digital gambling operations as well as charitable gambling and horse racing.
Both the Gaming Control Act and the IGCO will take effect on April 13, 2026.
A tighter fist
Minister and Solicitor General Nina Krieger said the new regulations give the Independent Gambling Control Office the powers to “more effectively address criminal activity.”
The Gaming Control Act is largely built on recommendations made within two investigative reports, the Dirty Money report of 2018 and the Cullen Commission’s inquiry into money laundering four years later. The act initially passed in fall 2022, after the second of those two reports.
Ultimately, the goal is to better equip the province to detect and prevent criminal gambling activity such as money laundering in casinos and online. The government noted that the reports identified “weaknesses in B.C.’s regulatory framework that hindered an effective response to money laundering.”
The updated act is also intended to address other issues, like problem gambling and the evolution of B.C.’s gambling industry into a more digital-first sector in recent years.
The recommendations from the two reports included not only setting up a new independent gambling regulator but also “clarifying the roles and responsibilities between the regulator and BCLC.” Money laundering will be the responsibility of the regulator and its new general manager. The IGCO will be able to issue directives to BCLC without needing to seek the consent of the ministry.
Canadian Gaming Business reached out to BCLC and was told only that BCLC is currently reviewing the regulations and will work with the government as it begins implementing them.
BCLC sued FINTRAC over AML fine
The announcement of the changes came amid BCLC’s active litigation against Canada’s federal anti-money laundering and anti-terrorism watchdog, the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC).
After FINTRAC fined BCLC more than $1 million for multiple alleged AML violations, the crown corporation claimed it was “ambushed” by the federal body.
FINTRAC accused BCLC of three counts of non-compliance with the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) and associated regulations for allegedly failing to report suspicious transactions, to develop and apply policies and procedures for high-risk clients or to take special measures for high-risk clients.
BCLC stressed in its court appeal against the fine that both its own monitoring and examination policies and those of the GPEB “found nothing unusual or suspicious about the patron’s activities that warranted further investigation.” The lottery emphasized that FINTRAC’s findings do not include allegations of any criminal offence.
Check the price
Meanwhile, noting that the provincial gambling industry’s fee structure had not been updated in more than 15 years, the new Gaming Control Act will also start charging more to take part in gaming, increases the government said are based on inflation and how much it costs to regulate gaming these days.
Brand new fee classes will be added to reflect the expansion of BCLC’s online gambling platform, PlayNow.com, currently the only government-approved iGaming platform in the province. Meanwhile, fees for gaming facilities and charitable gaming events will soon be based on revenue, instead of a flat fee that was determined by the number of slot machines in a facility, and service providers such as gaming suppliers will also face higher costs.
The government said it consulted with industry stakeholders on the price hikes.
BC horse racing hits hurdle
This isn’t the only piece of news B.C.’s Solicitor General has brought to the province’s gaming industry in the last week.
Krieger informed the horse racing sector at the end of November that the provincial government will stop giving a cut of slot machine revenue to the province’s last operating horse track, Vancouver’s Hastings Racecourse, on Jan. 31, 2026. Krieger said that neither dedicating that revenue nor providing additional funding for B.C. horse racing is financially viable.
Krieger added that the government has determined that even with government investment from casino-generated revenue, the B.C. horse racing industry is not sustainable because of a range of factors, primarily declining revenues and public participation and attendance at racing events.
