B.C. Lottery Corp given more oversight to monitor casinos amid review

The British Columbia government is giving theprovincial lottery corporation more teeth to monitor the gamingindustry amid concerns overmoney laundering in casinos.

Attorney General David Eby said Thursday new operational service agreements will be signed with casinos as existing contracts expire.

The new agreements are aimed at boosting discipline andstrengthening the B.C. Lottery Corp's security and complianceoversight, he said.

"I'm very happy there is a new service agreement that is cominginto place for B.C. casinos that will increase the ability of theB.C. Lottery Corporation, and, by extension, government, to enforcethese policies," said Eby, who is also the minister responsible forgaming.

The new agreements come as the government awaits the results ofan independent review into policies and practices in the gamingindustry.

• Canada's financial watchdog to 'review' B.C. casino money laundering

Eby launched the review after reading a report commissioned bythe previous Liberal government about the River Rock Casino inRichmond accepting $13.5 million in $20 bills in July 2015, whichpolice said could be proceeds of crime.

The July 2016 report says the majority of the cash is beingpresented by people commonly referred to as "high roller Asian VIPclients" and that River Rock was known to have accepted single cashbuy-ins in excess of $500,000.

Rod Baker, thehead of the Great Canadian Gaming Corp., which runsRiver Rock, said last month that compliance procedures are strictlyfollowed and his company is committed to preventing illegalactivities at all its locations.

• Casino boss 'proud of our track record' in face of money laundering review

Peter German, a former deputy commissioner of the RCMP and Correctional Service Canada, was asked to conduct the review and his report is due by March 2018, though he was encouraged to make recommendations as he develops them.

German has broad knowledge ofmoneylaundering and anti-corruption programs and spearheaded thecreation ofanti-corruption teams during his time with the RCMP.

"When he provides that advice to me, we need to make sure notonly that it's implemented in the form of policy, but that policy isenforceable, that there is actually a consequence on the ground atcasinos in British Columbia as a result," Eby said.

The contract changes that were announced Thursday will also makeit easier for the lottery corporation to act on the review'sfindings, Eby added.

Lottery Corp. President Jim Lightbody said the long-term successof the industry will depend on maintaining the security andintegrity of gambling.

"The gambling market has evolved significantly since BCLC firsttook on the role of managing casinos in 1997," Lightbody said in astatement.

B.C.'s Gaming Control Act gives the B.C. Lottery Corp. responsibility for the conduct and management of gambling in theprovince.