July 13, 2001

On Friday, July 13th, government fired the Board of the BC Gaming Commission as part of the Campbell government’s core service review.  Three weeks earlier government shut down the Smith Inquiry after it had spent $6 million and was about to submit recommendations to government on how charitable gaming should be changed.

The government’s news release quoted Minister Coleman as saying “This is a first step to streamlining gaming, eliminating duplication and focusing on key mandates."   The release went on to say “the ministry's review of the gaming sector, including the B.C. Gaming Commission, will develop recommendations for improving gaming policy, governance and operations.”

With hundreds of millions of dollars at stake, and with a Minister of Finance who is looking for money, government ought not to go behind closed doors to make changes to how gaming works in BC.  Firing public Inquiry Commissioners, firing Boards and setting new policy without a public process is not the hallmark of an open government.  Politicizing the distribution of charity monies would not be wise.

The “core service review” may be a good idea that is out of control.  Rather than involving the public in any consultation, government has taken the view that with its overwhelming majority, it has the mandate to do almost anything.  It may have the power, but it wasn’t given a blank cheque.  Government should consider that rather than it winning the last election, the NDP simply was thrown out.  It would be wise for the new government to involve the public in consultations before it announces decisions.

During the gaming “review” it may be wise to take a look at “gaming” in Alberta.  After all, quite a few policies seem to be on the import list from Alberta

On May 25, 1999, Alberta established a separate Ministry of Gaming.  The Alberta Gaming and Liquor Control Commission reports to that ministry.  In fiscal year 1999-2000, Alberta took in $857 million in gaming revenue.  For the current, 2001-2002, fiscal year, Alberta has budgeted for $1.010 billion in gaming revenue. Alberta has projected that by fiscal 2003-2004, it will take in $1.136 billion.  That is an increase of 30% over just 5 years!  Most of the Alberta gaming revenue goes to what many would consider routine government functions ranging from agriculture initiatives to water management.  The overwhelming majority of the revenue comes from video lottery terminals (VLTs) and slot machines.

In BC since 1987, the Gaming Commission has the responsibility for distributing over $125 million per year in gaming profits to various charities.  The responsibilities for gaming and gaming policy was changed with the new government from the Ministry of Labour to the Ministry of Public Safety and Solicitor General.  Actual operation of the lotteries and other gaming activities falls under the British Columbia Lottery Corporation.  With the exception of the recent change in ministry, the overall responsibilities of the various agencies involved with gaming in BC are well described on the BCGC website.

The most startling fact about gaming in BC is that gaming revenues are dramatically lower than in Alberta.  In fact, only Newfoundland and PEI have lower per capita gaming revenues than BC.  With a larger population than Alberta, for fiscal 2001-2002, BC budgeted $429 million.  That is less than half of what Alberta will take in from gaming.

Gaming has been controversial in British Columbia.  A heavy handed approach in the early days of the Campbell government is likely to result in even more controversy.