The BCLC is Reviewing Regulatory Legislation After 20 Years
The British Columbia Lottery Corporation has announced that it has completed the refresh of a document known as the Operational Services Agreement (OSA). The document is in fact a lawbook for the casino and gambling operators, in general, expected to act within the province. The review follows the trial in September, when British Columbia Attorney General David Eby revealed evidence that a group of Chinese gamblers had been using a BC casino to launder money, and the sum of the in the millions of dollars.
While all the details of that issue have yet to be published, including the evidence of a two-year own research, it is clear that the British Columbia Lottery Corporation is looking to bring a new level of gaming activities in the province.
Jim Lightbody, BCLC President and CEO, explained the process, saying: “The market for gambling has a strongly developed since BCLC first took up the role of managing casinos in 1997. The new OSA determines the price for the long-term success of the industry in B. C. by working with service providers to create and commit to a plan and hold service providers responsible for the plans and for maintaining the security and integrity of gambling.”
In an official press release of the BCLC, the company created the new structure clearly: “As the Crown corporation responsible for the management of gambling in the province, BCLC will continue to determine where the casinos and community gaming centres and contracts with the private-sector companies in the construction and operation of the facility. This private-sector service providers earn similar with a share in the proceeds as a financial incentive for investments in operating and growing the business.”
The basis of the revised OSA are very clear. The BCLC states that it will continue to be for the identification of the body with respect to the location and the contract-type gaming centres and facilities in the province. The new document also contains the protocols for the cases where the operators do not meet the current standards. This means that a broader scope of responsibility for operators as well as a better defined “or else” scenarios.
The BCLC, of course, is in favor of gaming operators succeed within the new ecosystem. The incentive given by the regulator to the casinos and other actors that follow the new protocols is a 5% – scheme investments commission which will be linked to the net profit. The BCLC stressed, however, that this incentive can be cancelled for entrepreneurs who repeatedly do not comply with the new regulations.
a Part of the existing laws, the British Columbia Lottery Corporation stressed that the operators would be required to have a commission rate of 25% on slot net win amounts, as well as the 40% rate is placed on high-limit tables games. For the regular-limit table games, the amount will be set at 42.5%, and for poker will increase to 77.5%.
The bingo sector is also included in the recently revised protocols. For bingo, operators will be required to obtain commissions on the weekly revenue after prizes are paid. This is described as 90% on the first $ 10,000 and 45% on an amount of more than $ 10,000.
The recently revised OSA agreement shows that gaming is really evolving in the province. While there is a need to regulate the gaming activity, it is not always clear whether the parties involved are really representing the public, or just interested in scraping away as much as they can of the operators.
of course, operators in the province do not have a choice. The new OSA is a 20-year agreement, and the BCLC will begin with the approach of operators to sign the document in the near future.
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