Canada isn’t exactly known as a central gambling hub, but the industry has found great success. The regulatory bodies of the country are very accommodating and forgiving. Consequently, the appeal of gambling events continues to grow.
Sports betting, lotteries, bingo, slot machines, and many more are all on the rise. There has been a dramatic increase in the number of financial crime cases in the country as the number of operations has increased.
Therefore, local regulators in Canada are increasing their inspection of casinos and online gambling platforms to curb money laundering and other forms of corruption within the sector.
The Canadian government is making some changes to the gaming business, which is exciting for punters. As a result of the new legislation, residents will have safer gambling options available to them online.
Aggressive action is being taken by regulatory agencies, who now view casino money laundering malfeasance as a danger to financial security. This prevents the Canadian gaming sector from becoming a conduit for criminal organizations or money launderers.
A Quick Overview of Canadian Gambling History
Gambling has a long and storied history in Canada, beginning long before European settlers arrived. Around the Pacific Northwest Coast, indigenous people played a game called Slahal using sticks and bones. It has been played, so the legends say, since before the last ice age. European settlers disapproved of dice games since they were against British common law.
Today in Canada, gaming is widely accepted. Since the development of the Internet, online gambling has exploded in popularity, attracting approximately 20 million active gamblers. This ranking puts the country in the top eight for online gaming globally.
According to statistics compiled by the Canadian Gaming Association, the gambling sector in Canada is worth over $15 billion and employs over 130,000 people.
Consistent with the sector’s development, the legislation has become increasingly permissive. Parimutuel betting was the only form of online gambling sanctioned before 2021, when the government legalized single-game wagering.
Even though they have online casinos that Casino reviewers rank, some states haven’t registered offshore corporations to operate them. The state of Ontario legalized iGaming on April 4, 2022, and ever since then, any gaming enterprise in the country that was willing to do business legally is free to do so.
Several Crimes Are Prevalent in the Gambling Industry in Canada
Millions of dollars have been “washed” through casino gambling, online betting, and many more. The gaming industry in British Columbia brings in vast sums of money for the government. In 2015–2016, regulatory authorities in Canada collected a record $3.1 billion in income from fines levied on firms and people for their participation in financial crimes.
Some examples of cases exposed in the gambling industry are listed below.
Provincial Authority of Ontario Issues Penalties Hard Rock International owns the casino in Ottawa. A Fine of Over $200,000 for 36 Infractions
Ontario’s gaming regulatory authority fined a local casino for failing to meet several requirements, and the issue of money laundering through gambling platforms is currently a hot topic in Canada.
Due to the casino’s noncompliance with the Registrar’s Standards for Gaming, AGCO has decided to fine the establishment. The 36 infractions include, but are not limited to, providing advertising materials to people who had self-excluded from gaming activities, failing to execute anti-money laundering processes, and many other things.
Canada’s Royal Canadian Mounted Police Expose “Sophisticated” Casino-Based Money-Laundering Scheme
For the RCMP’s Officer in Charge of District Command, Superintendent Jeff Cooper, “this investigation, conducted with the assistance of the Ontario Provincial Police (OPP) and FINTRAC serves as a great example of how a coordinated enforcement effort can contribute to safer communities by disrupting the flow of illicit funds from criminal enterprises,” is a ringing endorsement.
In addition, the AGCO will investigate the gaming organizations it oversees to “evaluate the efficiency with which they carry out the procedures necessary to ensure that the Gaming Control Act, the laws thereunder, and the Registrar’s Standards for Gaming are being complied with.”
Laws Governing Gambling in Canada 2022
There are ten provinces and three territories that make up the union that is Canada. Canada’s federal Criminal Code makes it illegal to engage in betting or other forms of gambling unless provincial or territorial governments step in to oversee the sector.
For both land-based and online gambling, which are governed at the provincial level, the Canadian Gambling Commission is responsible for regulation and legalization while developing communication channels with the public, government, and media.
Charitable and religious organizations are the only businesses that can register with the Alberta Gaming, Liquor, and Cannabis Commission as gaming service providers. The only legal online casino in Alberta is PlayAlberta.ca. The Gaming, Liquor, and Cannabis Act outlines the primary guidelines that service providers must follow.
The Gaming Policy and Enforcement Branch of the British Columbia Ministry of Finance issue licenses to gambling establishments in the province. The Gaming Control Act of 2002 is relevant to interpreting British Columbia’s gaming laws. PlayNow is the only authorized online gambling service in these jurisdictions, as in Alberta.
The Manitoba Liquor and Lotteries Corporation oversees the gaming industry in Manitoba. The regulatory body issues licenses and watches out for the fairness of the gambling and lottery industries. It also verifies the legitimacy of licensed gambling establishments through extensive research. Manitoba Gaming service providers must follow the Manitoba Liquor and Lotteries Corporation Act and the Liquor, Gaming, and Cannabis Control Act.
What Benefits Shufti Pro Brings
The proliferation of financial crimes, such as money laundering and terrorist financing, has a negative effect on the online gaming sector. The government and regulatory bodies are working together to establish strict requirements for firms to comply with before they can legally operate in the country.
Gambling businesses that want to offer their services online should use Shufti Pro’s cutting-edge KYC and AML solutions. A customer’s true identity can be ascertained using an ID verification solution driven by artificial intelligence. Shufti Pro’s AML screening services use thousands of AI models to quickly and accurately verify clients against 1700+ financial watchlists, all in under a second.