Will British Columbia Follow Ontario and Alberta’s Gaming Lead if Conservatives Win the Provincial Election?

Posted on: October 4, 2024, 11:37h. 

Last updated on: October 4, 2024, 11:37h.

Mark Keast Read More

Expertise: Canadian Gaming, iGaming, Las Vegas, Sports Betting, NFL, Boxing, UFC.

With the British Columbia Conservative Party holding a slight edge in polls as the provincial election draws closer, some folks are wondering what the potential impact on the iGaming market in the western Canadian province will be if they pull out a win.

The election date is October 19 and, according to the latest Leger survey released on Wednesday, momentum for the Conservatives continues to build. The party holds the top position in voting intention among decided voters for the second week in a row, and at 46%, sits three percentage points ahead of the incumbent BC New Democrat Party.

The Leger survey was conducted between September 27-30. Thirty-six percent of BC residents believe that things in the province are going in the right direction, while 55% believe that things in the province are on the wrong track.

Provincial Election Scheduled for October 19

That sudden rise in popularity for the Conservatives in a province where the Liberal Party and the farther left New Democrats have been governing since 1991 not only has political observers shaking their heads, but also people in the gaming industry.

“If you said to anyone five or six months ago that the Conservative Party would be a factor at all they’d be fitting you for a tin foil hat,” said an industry source.

Conservative Party-led Ontario, Canada’s most populous province, introduced an open, regulated iGaming market in April 2022, with 51 operators currently licensed and operating, along with 83 gaming websites, according to iGaming Ontario.

Conservatives Eyeing Tax Dollars

United Conservative Party-led Alberta is quickly moving toward an Ontario-style iGaming regulatory regime, although the timing of when that market goes live is now up in the air. Industry sources tell Casino.org that fall 2025 is a realistic possibility.

“The political winds can change very quickly on the back of an election,” said Mark Harper, Head of Emerging Markets, BVGroup. The company’s BetVictor brand is licensed and operating in Ontario.

Premier Eby Showed Support for a Competitive Market

“I think if the Conservatives do get in, that’s a very different look. I’m sure they’ll be eyeing tax dollars, and I can see there being a swift change in strategy and policy,” said Harper. “Obviously, operators are watching that situation very closely, and I can see BC moving very quickly, especially on the back of Alberta.”

People in the iGaming industry, however, believe changes in the market might still come if the NDP wins. A senior industry source told Casino.org that Premier David Eby, when he was Attorney General of the province, was “very supportive” of “major changes” to their gambling industry.

Learning Curve Would Delay the Process

“[Eby] wanted more of an Ontario-style regulatory regime,” he said. “He wanted it moved out into an arm’s length independent agency, like the Alcohol and Gaming Commission of Ontario (AGCO).”

When Eby took over as premier in 2022, priorities changed, the source added. And if Eby and the NDP win, he still might not survive as Premier since they would have squeaked out a win after dominating provincial politics for decades.

If the Conservatives win many of the people that were influential [in the iGaming process going on in Alberta] are also very active in the B.C. campaign [for the Conservatives],” the source said.

“At least some of those people understand what’s going on in the Alberta development towards a regulatory regime for online gaming. They’ve seen how much you get, here’s how you structure the model, here’s what you do. And there’s gold in those hills. You must put some framework around how you’re going to regulate this,” the source said.

The appetite in B.C. to take the market down this new path is there, the source said, adding it would take time, since there would be alearning curve wit a new government.

“If these guys get a majority, they will start moving down this path,” he said. “The reality is some of this work has already happened since the regulator in B.C. has a strong relationship with the regulator in Ontario. Those back channel conversations have happened.”

Burns: iGaming is Rarely a Government Priority

“It’s going to be interesting to watch [B.C.] unfold,” said Paul Burns, President and CEO of the Canadian Gaming Association (CGA). “Provincial governments across the country through the lottery industry by and large have built a strong gaming industry rooted in a strong commitment to responsible gaming. But monopolies have gone away, and the need for consumer protection needs to extend beyond their own enterprises.

“[Ontario’s policy] was built on consumer protection, consumer choice, channelizing the grey market to a regulated market and it’s been wildly successful. That didn’t happen quickly. But this is going to continue to grow,” said Burns.

When he met Premier Eby, Burns said the Premier understood the need for an open, regulated market from a consumer protection point of view. He was supportive of changing laws around sports betting. But the realities of governing a province soon set in.

And what I’ve learned, gaming is never in the Top 10, and if it is, it’s not for good reasons,” Burns said.

“We will talk to any government encouraging the same thing. You can’t do nothing. You have a lot of choices. You could look at what Ontario is doing [or do something else]. But we’re here to help you because we believe regulated markets better protect people.”

Casino.org reached out to the BC Conservative Party for a comment but we haven’t heard back as yet.