The Government of B.C. will not proceed with a gaming pilot on board a BC Ferries’ vessel.

This decision follows a Ministry of Transportation and Infrastructure review of a business analysis undertaken by the British Columbia Lottery Corporation (BCLC), with input from BC Ferries.

The ministry agrees with the analysis, which determined that the potential revenues from gaming would not generate a return on investment at this time. Instead, BCLC estimated a loss of approximately $240,000 a year because of added staffing, IT and equipment.

Introducing gaming on board BC Ferries was an idea generated through government’s public engagement on the coastal ferry service as an option to increase revenue for the BC Ferries. The business case ultimately did not support this idea.

As part of the mid-life upgrades to the Spirit Class vessels, BC Ferries is planning to expand the gift shop and relocate the coffee shop on board these vessels. Actions such as these, which take advantage of available on-board space to increase revenues, are in keeping with the government’s vision for an affordable, efficient and sustainable coastal ferry service.

Quote:

Minister of Transportation and Infrastructure Todd Stone ─

“British Columbians have told the government to explore new and innovative ways to keep ferry fare increases affordable, which is why we explored the idea of introducing gaming on the BC Ferries. While the BC Lottery Corporation’s analysis showed that this idea wouldn’t make money, we’ll remain open to other revenue-generating services. We’re encouraged by the ferry commissioner’s recent preliminary price-cap ruling, which confirms that progress is being made in breaking the back on unaffordable fare increases and getting them in line with long-term inflation.”

Media Contacts:

Media Relations
Government Communications and Public Engagement
Ministry of Transportation and Infrastructure
250 356-8241

BACKGROUNDER

Excerpts from the BC Lottery Corporation Review for Electronic Gaming on Ferries

Key findings:

“Ultimately, the costs, risks and procedural changes required to operate EGDs on a BC Ferries vessel outweigh the financial gains of this Business Opportunity.”

“The projected combined annual net loss to Government [on Spirit Class vessels] is ($240,563).”

“The initial capital and ongoing operating cost estimates do not take into account the additional financial impact and time required by BCLC and GPEB to make changes to the existing gaming model and legislation to allow for EGDs aboard a BC Ferries vessel. The financial viability of this opportunity does not improve with roll out to more vessels.”

Other challenges:

 “While relatively rare, potential security-related incidents such as disputes over game outcomes, thefts, delayed jackpots due to irregularities, children being left unattended if guardians enter the gaming facility during the sailing, and other issues carry the potential to damage the reputation of BC Ferries and BCLC, as well as cause delays in the boarding and disembarking of passengers on the vessel.”

“It should be noted that the proposed pilot route currently travels through US waters for 20 to 25 minute of the sailing time. As BC Ferries vessels are not considered cruise ships, there is the potential that a portion of all sales aboard the vessels, including gaming revenue, may need to be shared with Washington State.”

“Although the model will be cashless, when the NRT machine is loaded and unloaded, cash handling will be required. Managing cash requires established policies and procedures and the associated resources to uphold integrity and manage risk. When managing cash and the movement of cash, BCLC requires ‘dual custody’ on all cash transactions. This requires two employees - one of whom must be at a supervisory level - to witness and sign off on all transactions.”

“To provide this service, staff will be required to facilitate gaming transactions for patrons, resolve any minor technical issues and be well-versed on the product offerings. They should have excellent communication and conflict resolution skills, be trained in recognizing and managing responsible gaming practices, and be able to respond appropriately to customers should they exhibit signs of distress.”

“In addition, both lottery and PlayNow.com would require consistent network connectivity for the duration of the ferry sailing to operate, which is not available at this time.”

“A gaming facility on a BC Ferry will not have access to a police presence until docked. Situations that require police will require BC Ferry staff to manage the situation, including securing problem individuals, until the vessel is docked. This model is very different from land-based facilities.”

Media Contacts:

Media Relations
Government Communications and Public Engagement
Ministry of Transportation and Infrastructure
250 356-8241