Lots of changes at the BC Lottery Corp. (BCLC), and not just in the chairman's position.
Bud Smith, who was attorney general under Social Credit premier Bill Vander Zalm, replaced John McLernon as the board head in July.
The name of McLernon, the Colliers Macaulay Nicolls co-founder and privatization-era chairman of BC Rail, mysteriously disappeared from the BCLC listing on the Board Resourcing and Development Office website after May's election. BCLC media relations staff claimed, at the time, that they knew nothing.
As the B.C. Crown gambling monopoly waits for the Senate to approve changes to the Criminal Code to allow single-event sports wagering, additions are being planned for the PlayNow.com website.
BCLC issued a request for proposals to add live scores, statistics, schedules and video content. It wants to create a roster of prequalified vendors for three years, with an option for another two, for up to four media content companies – three that provide game feeds and four in the business of streaming video.
"BCLC expects content providers to own, or have rights to intellectual property that may be used for gambling purposes, and that BCLC may use on various distribution points and/or arrange to have further developed," said the tendering document.
BCLC's priority is content from all major North American sports and English Premier League soccer. Bids are due August 23.
Four days earlier, it was BCLC's deadline for business transformation consultants. The Crown corporation, which already has a "corporate transformation department," listed eight drivers for transformation in the tendering document.
It claims that between $200 million and $650 million of income is at risk over five years. Growth in revenue and net income before taxes mirrors inflation, and there are cost pressures on the business.
"Achieving the Service Plan forecast is dependent on innovation, municipal approvals, consumer confidence, population growth and economic buoyancy," said the tendering document.
"Margins are shrinking in some areas. Consumer entertainment choices are growing, and the market is changing more rapidly. BCLC needs to stay relevant in today's climate."
BCLC's estimated share of the entertainment wallet is under 5%, and it claims a need to be more innovative in its properties, products and services.
"Opportunities for growth could be through greater innovation and faster transformation but the pace of change is accelerating in the marketplace, and we run the risk of becoming increasingly irrelevant to consumers and their changing entertainment tastes," said the tendering document.
The annual report for the year ended March 31, 2013, showed $1.128 billion in profit that was sent to government, but there are clouds on the horizon.
"With the build-out of casinos nearing completion, gambling products that are reaching maturity in their life cycles, an aging player demographic, a potential decrease in player relevance and challenging economic times, sustained delivery of net income to government is at risk," said the annual report.
Electronic gaming net income, the umbrella under which PlayNow fits, fell to $17.8 million in 2012-13 from $24.8 million in 2011-12, almost half the budgeted $35.5 million.
Revenue did increase to $73.3 million from $65.6 million, but that was below the forecast of $91.3 million. In 2013-14, BCLC is budgeting $100 million. Expansion of the legalized gambling platform to other provincial monopolies could be a lucrative new revenue centre. Manitoba Lotteries Corp. was the first customer.
"This marks the beginning of a new line of business and revenue stream for BCLC," said the annual report, "one that shows incredible promise as we look to partner with other jurisdictions, which we anticipate will afford economies of scale and increase our player base across the country." •
