"BCLC and GPEB are undergoing a period of media attention and intense scrutiny."
Deloitte & Touche LLP, "Report on the Independent Review and Assessment of the Retail Lottery System in British Columbia", October 31, 2007, p. 14 (pdf p. 18)

If it weren't for the work of the media, Solicitor General John Les and the Campbell government might still be telling us all is well with gambling in BC. The British Columbia Lottery Corporation (BCLC) and the Gaming Policy and Enforcement Branch (GPEB) both report to Les; that apparent conflict of interest was created as a result of government reorganization in 2001. In October 2006 the CBC's "Fifth Estate" exposed retail lottery fraud in Ontario; John Les insisted nothing of the kind could happen in BC. The Vancouver Sun promptly submitted a freedom of information request to check on the situation in BC; in December 2006 the Sun reported that lottery retailers in BC were winning more prizes than their numbers would warrant. Les said there was no problem. On May 29, 2007 the Ombudsman released a report highlighting problems with retail lottery sales; Les accepted the recommendations, and on June 8th appointed Deloitte to review the retail lottery system in BC.

The Deloitte Report made 44 recommendations. It said that: "In reviewing the status of the recommendations since the Ombudsman's Report, we have noted that there has been a shift in the level of responsibility BCLC has towards the player. BCLC now takes greater responsibility for the safety and well-being of players, which in turn has introduced additional costs for the new changes and initiatives in the lottery operations and regulation of those operations by GPEB."

The Report went on to suggest a cost-benefit comparison for the increased sensitivity to the risk of retailer fraud and noted that greater costs of fraud controls could penalize "the players (as a result of more lengthy and onerous prize claim procedures) and the taxpayers and charitable beneficiaries of lottery revenues (as a result of reduced funds available for distribution)." That's a little hard to believe since government revenues from BCLC have increased from $414 million in fiscal year 2000-2001 to an estimated $1.024 billion for fiscal year 2007-2008. With the government's take increasing by two and a half times in 7 years, you have to wonder why Deloitte would suggest that charities might have to suffer if costs increase to protect players. Their report doesn't come close to being as hard-hitting as the Ombudsman's Report.

It is also a little hard to believe the Deloitte Report when it claimed that "BCLC now takes greater responsibility for the safety and well-being of players". BCLC launched its "Player First" program as a campaign to mitigate damages from the Ombudsman's Report. Local retailers may (or may not) ask you to sign the back of your ticket, but there is little else to suggest anything of substance has been done to put players first. BCLC is in the midst of a major expansion into Internet gambling. Click on its website and you'll see: "Anytime is Game Time with PlayNow! … Play the latest interactive games where you could win instantly." In addition to selling lottery tickets online, BCLC offers 10 "interactive games" that are equivalent to video lottery on the Internet. BCLC makes it possible to buy lottery tickets online. In tiny print you'll see the rules for "never miss a draw". The rules are different for "PlayNow" purchases compared to retail purchases, and players don't see the rules before purchasing tickets unless they choose to click on the tiny print. So much for putting players first! Expansion of Internet gambling is one of BCLC's "four key strategies" identified in its service plan.

An open and honest government would disclose how much is spent to encourage increased gambling compared to how much is spent to deal with the negative consequences of gambling, including gambling addiction. No amount of effort, no number of freedom of information requests, will pry the figure for the marketing of gambling out of BCLC or the Campbell government, but anyone who turns on a TV or radio, rides a bus, walks into a mall or down the street can't miss the onslaught of advertisements from BCLC. The cost has to be in the many tens of millions. The budget for problem gambling is less than $5 million. A goal of BCLC is to increase net income by 15% over three years.

The Deloitte Report described its mandate by saying: "This mandate refers to "gaming activities in BC" which include lotteries, casinos, bingo and horse races. However, we have not reviewed, audited or otherwise conducted any assessment of gaming activities beyond retail lotteries." It might have been more accurate to say that it assessed some aspects of retail lottery sales. There are a lot of questions that haven't begun to be adequately explored.