British Columbia Is Losing Nearly Half of Its Online Gambling Market to Illegal Sites
British Columbia has officially acknowledged a problem that closed markets usually try not to say too loudly: the government-run PlayNow controls only 51% of the online gambling market. The other 49% of players are going to unregulated sites.
For the province, this is more than just an uncomfortable statistic. According to government estimates, about $316.5 million flows each year through platforms that do not pay local taxes and do not participate in responsible gambling programs. The money is there, the players are there, and the demand is there — but nearly half of that turnover exists outside the regulated system.
The contrast with Ontario is too obvious to ignore. After that province opened its market to private licensed operators, the share of players using illegal sites dropped to just over 8%. The model is not perfect, but the numbers show one simple thing: when users have a choice among legal brands, the grey market becomes less attractive.
British Columbia is taking a different approach for now. The authorities do not plan to open the market to private operators and are instead focusing on developing PlayNow. The platform is expected to be updated, while sports betting will be improved together with Kambi. That is a logical step for a monopoly model, but the question is whether it will be enough when almost every second player is already used to looking for alternatives outside the official platform.
Additional pressure may appear after July 13, when neighbouring Alberta opens its regulated online gambling market to private companies. For British Columbia, that will create an uncomfortable comparison right next door: one province will continue relying on a government platform, while the other will try competition and licensing.
As long as PlayNow remains the only official option, illegal sites are effectively taking from the market what could otherwise go to the budget, the regulator, and player protection programs. And if the platform update does not produce a noticeable effect, the conversation about an open model in British Columbia will keep coming back — just with even more uncomfortable numbers.
Olivia Grant is an iGaming news reporter at CasinosInCanada who covers casino industry updates, regulations, and market developments.
