The provincial government has scuttled plans to test slot machines on B.C. Ferries as a way to increase revenue and keep fares down.
The B.C. Lottery Corp. did an analysis and concluded that a pilot project on the Tsawwassen-to-Swartz Bay route would lose $240,000 a year.
The report, released by the government on Monday, said the cost of extra staffing, information technology and equipment erased any benefits.
“Ultimately, the costs, risks and procedural changes required to operate [slot machines] on a B.C. Ferries vessel outweigh the financial gains of this business opportunity,” the report said.
The pilot project also would require changes to provincial laws and policies, the report said.
Transportation Minister Todd Stone, who first aired the idea in 2013, said it was just one of many suggestions that emerged from public discussions about ways to increase revenue and reduce fares.
“There are no bad ideas,” he said. “The challenge is huge. We heard loud and clear from folks in coastal communities that fares could not continue to escalate as they had in the past. So we set about to consider any and all ideas.”
But he said the government has no plans to further consider gambling in any form on B.C. Ferries vessels. “The idea was worthy of consideration, we’ve considered it, we’ve ruled it out, we’re moving forward.”
B.C. Ferries spokeswoman Deborah Marshall said the corporation had come to the same conclusion as the government based on the space, staffing and equipment required. “It just wouldn’t be a payback,” she said.
The report focused on the viability of slots on the Spirit of Vancouver Island and the Spirit of British Columbia, B.C. Ferries’ two largest vessels.
Instead of adding slots, the corporation plans to double the size of gift shops on its Spirit-class vessels when they undergo mid-life upgrades, Marshall said. “We bring in $50 million with catering and retail every year, so that seems to have a better revenue-generating opportunity for us.”
The lottery corporation’s report noted potential risks to the reputation of B.C. Ferries and the lottery corporation by “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.” Such incidents could delay boarding and disembarking of passengers, the report said.
In addition, the report noted that since the ferries travel through U.S. waters for about 20 to 25 minutes on each journey, B.C. Ferries might have to share gambling proceeds with Washington state.
The lottery corporation’s report highlights social risks associated with slot machines. It notes they are “one of the highest-risk offerings to those experiencing a problem with their gambling” and that the machines have been shown to contribute to gambling problems. “For example, the high speed of play and features that promote an illusion of control comprise some of the more problematic elements associated with [slot machines],” the report states.
NDP transportation critic Claire Trevena said it was a “very strange idea” from the start and she’s surprised it received the consideration it did.
“It felt like it was something written on the back of a napkin,” she said. “Now that it’s finally off the table, I think it’s really good news. We can get on with the real problem with B.C. Ferries, which is overpriced fares that are driving down ridership.”
