The results from the fiscal 2017/2018 show that the gambling industry in British Columbia has achieved a record income. This success is due to the lottery, casino and eGaming sectors in the province. While it is true that all three fields of the gaming industry in British Columbia have contributed immensely to achieving ground-breaking results, the land-based casinos are a major factor in the amazing revenue increase.
It is worth taking a look at the land-based casinos in British Columbia and their revenues since in the fiscal 2014/2015 it has been stated that this province has provided the highest government gambling revenue that has been distributed to non-profit organizations. As mentioned on Vancouver Courier, the City of Vancouver collects $45 million in casino revenue over the last five years.
During that year, over $1 billion of gambling revenue from commercial gambling in British Columbia has contributed to the funding of healthcare, community programs, as well as, education in the province. What is more, in the following years the profits from land-based casinos in British Columbia continue to add to the increase of the gaming revenue of Canada.
Gaming Revenue for 2016/2017
It should be noted that gaming revenue is a bigger profit resource for the province of British Columbia than the fuel tax, the energy royalties, the Liquor Distribution Branch and BC Hydro. What is more, a large portion of the 2016/2107 gaming revenue was distributed to more than 5,000 charity and community organizations. During the fiscal 2016/2017 year, it was the casinos, community gaming and bingo centers that contributed to the British Columbia Lottery Corporation’s revenue with C$1.9 billion.
This achievement in growth surpasses the revenue contribution of the past fiscal year with up to C$44 million. In the same fiscal year, the British Columbia Lottery Corporation contributed C$1.34 billion worth of net income to the province. It is worth noting that about 75% of this amount is due to the profits of casinos, community gaming and bingo centers. The net income of the British Columbia Lottery Corporation forms about 2.4% of the revenue budget of the province.
Gaming Revenue for 2017/2018
In the financial report for 2017/218, which included the period between April of 2017 and 31 March of 2018, the British Columbia Lottery Corporation has reported the astonishing revenue of C$3.27 billion. This is a record which beats the results of the past fiscal year with up to C$123 million. During the same period, Netent is already licensed to operate in British Columbia and the casino and community gaming division of the British Columbia Lottery Corporation reported whopping record revenue of C$1.95 billion.
This division consists of 19 community centers, 17 casinos and 6 bingo halls. A big part of the revenue increase is due to the profits from slot machines which has reached 7% up to C$1.37 billion. Meanwhile, table games have a smaller contribution of less than 1% up to C$492.7 million.
While the British Columbia sets online gambling revenue record in the first half of the fiscal 2017/2018 year, in the second half it suffered a decrease which is visible in the low contribution of table games. This is due to the increased regulations that were a result of the money laundering scandals which were concerning British Columbia land-based casinos. River Rock Casino was considered to be in the epicenter of the money laundering issues in the province.
Due to the anti-money laundering regulations that have been implemented in the province, there have been serious financial losses in the British Columbia gaming sector. This can be clearly seen with the report of Dundee Corp. for the loss of C$80 million that Parq casino has gone through. Another avid proof for the negative consequences of the anti-money laundering rules is the fall of gaming revenue of British Columbia casinos with 5% in the first half of 2018. These losses are estimated to be around C$6.6 million which is extremely negative for the revenue budget of the province.
Beginning of 2018/2019 Fiscal Year
Despite the drop in gaming revenue that was felt in the second half of 2018, things are definitely looking good for casino bonus sites like bonusinsider.com at the beginning of 2019. As the Great Canadian Gaming Corp. reports, during the first quarter of the fiscal year the gaming revenue reaches C$312 million. These results are surpassing the ones from the previous year with 35%.
Despite the positive results from the first quarter of the year, however, it is expected for the gaming industry to suffer yet another drop due to new anti-money laundry regulations. As it was stated earlier, these changes brought a serious revenue drop during the second half of the previous fiscal year. Unfortunately, it is expected for the gaming industry in British Columbia to endure more losses as there are plans for even tighter regulations that are supposed to prevent money laundering in the province casinos.
At the beginning of 2019, there was also another change in the provincial budget. Thanks to an agreement between British Columbia and First Nations it has been established that 7% of the British Columbia gaming revenue will be shared with First Nations.
This will take effect starting this year and is planned to continue for the next 25 years. During the period of the partnership, it is expected for over C$3 billion to be shared with First Nations and the annual income is estimated to be C$100 million. It is up to First Nations to determine how to use this funding which can be helpful for many fields such as healthcare, housing, protection of the environment, financial development and other sectors.
Until now, this 7% of the gaming revenue was directly attributed to the general revenue and was, later on, distributed for different purposes in the province of British Columbia. Thanks to the newly-accepted agreement, however, this portion of the gaming revenue will now help for the improvement of the infrastructure and environment of First Nations.