New Money Laundering Regulations Had a Significant Impact on BC Casino Revenue
According to available information, the changes made in the provincial money-laundering regulations are the main reason for such a stall.
Numbers Tell the Whole Story
The results of the survey show that the average revenue of each of British Columbia’s 20 biggest gambling venues went up by nearly 7.5% from 2014 to 2018. However, the total revenue generated in 2018 was up by only 0.1% when compared to 2017, which represents quite a difference from the yearly growth of 4.4% they saw in 2014.
Casinos that had both slots and casino table games in their offer saw their revenue improve by nearly 8% from 2014 to 2018. Unfortunately, their share of table games dropped by 8.4% during the same period.
This drop in table game revenue is in accordance with the most recent financial report posted by the provincial monopoly, the British Columbia Lottery Corporation (BCLC). According to the said report, revenues from brick and mortar casinos managed by private companies were basically unchanged at C$1.9 million. On the other hand, slots went up by 2.6% while table games generated 7.8% less revenue when compared to 2018.
Since the beginning of the last year, we’ve seen the introduction of more strict regulations when it comes to transactions exceeding C$10,000. These changes were aimed at establishing a tighter anti-money laundering control in casinos in the Vancouver area, including the River Rock Casino Resort, managed by the Great Canadian Gaming Corporation.
River Rock Leads the Way
According to the data posted by the Business in Vancouver (BIV), River Rock is the leading British Columbia casino in terms of revenue. However, its C$323.7 million in revenue, generated during 2018, represent a 22.9% drop when compared to 2014. Nevertheless, River Rock’s tables generated the highest revenue in its segment, with an average of $1.7 per table.
The Grand Villa Casino was the second-placed venue, followed by Parq Vancouver, the only facility located in downtown Vancouver. Cascades Casino Langley was the fourth-placed BC casino, while Hard Rock Casino Vancouver completed the top five.
Parq Vancouver has been struggling since its opening in September 2017, but following the introduction of the new local regulations, its gaming floor was limited to 600 slots and 75 tables. According to data provided by the BIV, these gaming positions have been thriving ever since.
Although Parq’s portfolio is not as extensive as the one offered by its rivals, it still managed to earn C$145,741 during the last year. Parq is also the only venue to have earned more from tables.
Revenues from slots and tables are expected to drop even more after the BCLC announced its new PlayPlanner budgeting tool, which enables players to set their spending limits. It should be pointed out that a similar tool has been available at PlayNow.com since 2004.