British Columbians are wagering up to $5.3 billion a year on unregulated online gambling sites, according to a 2021 report commissioned by the government from H2 Gambling Capital. The report estimates offshore operators made $216 million in gross revenue that year, resulting in $65 million in lost provincial tax revenue. Officials say the unregulated market has grown significantly since then, driven by aggressive advertising and easier access to offshore sites. It’s back in 2025 as new government documents and 2024 market data show unregulated revenue at CAD 400 million — almost as big as PlayNow — and the regulatory holes are getting bigger.

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Risks Identified

A 2024 confidential note from the British Columbia Lottery Corporation (BCLC) warns these sites “pose risks related to money laundering, problem gambling behaviour, game integrity and effective age-of-majority controls” (official document). The unregulated market has hundreds of operators, from big global brands to sketchy sites possibly linked to organized crime.

Market Size

Updated government figures suggest unregulated operators made $400 million in gross revenue in 2024, almost as much as the legal PlayNow platform’s $442 million. Officials say growth is partly due to Ontario’s 2022 legalization of private online gambling, which triggered a national advertising boom.

Report Release

The Ministry of Public Safety and Solicitor General initially refused to release the report under freedom-of-information laws. After a 16-month appeal by the Investigative Journalism Foundation, the government agreed to release the full, unredacted document.