Howestreet.com - the source for market opinions

ALWAYS CONSULT YOUR INVESTMENT PROFESSIONAL BEFORE MAKING ANY INVESTMENT DECISION

October 18, 2021 | BC Lottery Corp: Source of Funds Inquiry Jeopardizes Gambling Revenues

Danielle Park

Portfolio Manager and President of Venable Park Investment Counsel (www.venablepark.com) Ms Park is a financial analyst, attorney, finance author and regular guest on North American media. She is also the author of the best-selling myth-busting book "Juggling Dynamite: An insider's wisdom on money management, markets and wealth that lasts," and a popular daily financial blog: www.jugglingdynamite.com

The Cullen Commission, mandated to examine whether inaction or corruption enabled money laundering to take root in B.C. casinos and real estate,  is set to conclude final submissions on Tuesday.  As reported by investigative reporter and “Wilful Blindness” author, Sam Cooper, the evidence presented has been clear:  stopping the flow of dirty cash into casinos would reduce profits for the BC lottery corp and the provincial government, so it continued.  Pretty straightforward.  See BC government waited 9 years to heed recommendations to reject drug cash in casinos, inquiry hears:

“The gamblers were paying back the bags of suspected drug cash they used to buy casino chips with electronic fund transfers in China and Canada, according to a 2011 RCMP report, meaning that the “loan sharks” were not only profiting from interest on their criminal loans, but also successfully washing criminal money in international banks.

From at least 2009, many high officials in British Columbia were repeatedly warned of a massive escalation of “bulk cash” flooding into BC Lottery Corporation casinos that “undoubtedly has its origins in the drug trade,” according to the RCMP.

…in October 2015, after [BC gaming minister Mike] de Jong learned of the RCMP’s money-laundering investigation at the River Rock Casino, [his office] the enforcement branch directed the BC Lottery Corp. to not accept any cash in casinos unless the source of funds could be determined.

However, the [BC Lottery] corporation responded with a letter, saying: “You have directed that BCLC evaluate the source of wealth and source of funds prior to cash acceptance in all instances… Implementing a process that will require source of wealth and source of funds confirmation prior to any transaction will in all likelihood put much of the 77 percent of slot and table revenue that is cash based in jeopardy,” B.C. provincial lawyers submitted.

STAY INFORMED! Receive our Weekly Recap of thought provoking articles, podcasts, and radio delivered to your inbox for FREE! Sign up here for the HoweStreet.com Weekly Recap.

October 18th, 2021

Posted In: Juggling Dynamite

Post a Comment:

Your email address will not be published.

All Comments are moderated before appearing on the site

*
*

This site uses Akismet to reduce spam. Learn how your comment data is processed.