Audit of Gaming Integrity in Casinos
Backgrounder
July 20, 2005
Gaming integrity defined
Gaming integrity includes the control processes used
to help ensure that error, criminal exploitation and employee dishonesty in
gaming operations is minimized.
The importance of gaming integrity
Significant consequences for government if it fails
to ensure gaming integrity include:
- organized crime and dishonest individuals
may become involved in the industry posing a threat to patrons and increasing
the level of crime.
- a large number of patrons may lose confidence in
the industry and stop visiting casinos leading to a significant reduction
in government revenues.
- government may not receive all the revenue
to which it is entitled.
Responsibilities for maintaining gaming integrity in B.C.
casinos
The British Columbia Lottery Corporation (BCLC)
and the Gaming Policy and Enforcement Branch (GPEB) in the Ministry of Public
Safety and Solicitor General are responsible for gaming integrity in casinos.
BCLC manages and conducts casino gaming through a partnership with private sector
companies that provide day-to-day facility and operational services in compliance
with BCLC’s requirements. GPEB regulates casino gaming—it ensures
that the provisions of the Gaming Control Act are met including ensuring the
overall integrity of gaming in the province.
Measures used to maintain gaming integrity in casinos
The key measures used by BCLC and GPEB to maintain
gaming integrity in casinos include ensuring that:
- casino industry participants meet high standards
of honesty,
- casino gaming equipment operates fairly,
- casino gaming activities are conducted honestly,
and
- casino revenue is properly recorded and government
receives its correct share.
Key facts about the casino industry in British Columbia
- 21 casinos operated during fiscal 2004/05—maximum
allowed under the Gaming Control Act is 22.
- Casino revenue (after prize payouts) has grown significantly
(2004/05: $893 million; 1999/00: $446 million) and accounts for an increasingly
larger share of total gaming revenue—includes casinos, lotteries and
bingos—(2004/05: 44%; 1999/00: 32%).
- The number of slot machines has grown significantly
(2004/05: 6,324; 1999/00: 2,360) as has slot machine revenue (2004/05: $589
million; 1999/00: $231 million).
- The number of table games has grown more slowly
than slot machines (2004/05: 453; 1999/00:402) as has table game revenue (2004/05:
$304 million; 1999/00: $215 million).
- Host local governments’ revenue from casinos
has increased (2004/05: $53 million: 1999/00: $20 million).
- About 7,200 people are employed by B.C. casinos
and a further 1,000 by ancillary casino service providers.
Top
of Page