The government of British Columbia, Canada recently commissioned an independent expert to review the province’s gambling policies following concerns about alleged money laundering at the River Rock Casino in Richmond. That casino is operated by Great Canadian Gaming Corporation, which the Ontario Lottery and Gaming Corporation selected in August to run facilities at Woodbine, slots at Ajax Downs and the Great Blue Heron Casino in the Mississaugas of Scugog Island First Nation for at least 22 years. But now some lawmakers want Ontario provincial officials to halt that deal while it studies the situation in B.C.
Ontario Progressive Conservative Vic Fedeli said, “I think our main impetus is to ensure integrity in the industry. We’re asking them to halt right now while we gather the facts. I think that’s the prudent thing to be doing.” Ontario Premier Kathleen Wynne responded that OLG has strict anti-money laundering provisions, but officials will watch developments in B.C. “I think it raises questions, which is why the minister has spoken with OLG and we will be paying very close attention to it,” Wynne said.
Great Canadian Gaming Chief Operating Officer Terrance Doyle said the company follows strict regulatory compliance procedures and it is committed to preventing illegal activities at all of its locations. “Contrary to suggestions otherwise, to our knowledge our company is not under investigation in any jurisdiction. Our employees followed all procedures required of them by BC Lottery Corporation, none of our employees are facing charges, nor we do not believe our company’s actions would give cause to initiate any investigation,” Doyle stated.
OLG officials said Great Canadian Gaming is not under a criminal or regulatory investigation in either province, and they have confidence the company will responsibly operate the Greater Toronto Area facilities.
Ontario Finance Minister Charles Sousa said OLG’s procurement process is thorough and reliable. “The Opposition are inferring criminality but that is not the case. It’s a stretch to start to suggest that somehow the province of Ontario should retract from a legitimate operation and a legitimate contract because of some inference that happened two or three years ago that is being reviewed under due process.”
B.C. Attorney General David Eby said he called for the investigation into casino money laundering after reading a report that River Rock accepted $13.5 million in $20 bills in July 2015, which police said could be proceeds of crime involving Asian VIP clients. One year earlier a report commissioned by the previous Liberal government showed River Rock accepted single cash buy-ins of more than $500,000 with no known source of funds. Law enforcement intelligence indicated the money may have been “direct proceeds of crime,” the report said.
BCLC officials said they will await instruction from Gaming Policy Enforcement Branch, the provincial regulator, and the Ministry of Finance regarding what reforms may be needed following the recent revelations.
Great Canadian Gaming President and Chief Executive Officer Rod N. Baker said the company initially detected suspicious activity at the casino in 2012, and its ongoing monitoring and reporting to the BCLC helped identify the individuals allegedly involved.
Great Canadian operates 22 gaming properties, including 14 casinos, four racetrack casinos, three community gaming centers, one commercial bingo hall and resort hotels in Richmond, B.C. and Moncton, New Brunswick.
