The Alcohol and Gaming Commission of Ontario (AGCO) recently imposed a substantial monetary penalty of CA$70,000 on MGE Niagara Entertainment, the registered operator of Fallsview Casino Resort in Niagara Falls. This penalty was issued due to the operator’s failure to meet anti-money laundering (AML) requirements and minimize the risk of unlawful activities within its premises.
Incident Overview:
In April 2023, a notable incident occurred at the Fallsview Casino’s Salon Privé, where a patron presented CA$80,000 in strapped CA$100 bills from a reusable grocery bag. Disturbingly, despite the casino having previously identified the patron as “high risk,” it failed to notify the AGCO or on-site police. The patron, having left the table with casino chips without playing, raised concerns about potential money laundering.
Regulatory Lapses:
The AGCO found that Fallsview Casino Resort failed to adhere to the Registrar’s Standards for Gaming, specifically related to AML regulations. The casino operator neglected to take necessary steps to corroborate the source of the patron’s funds, as mandated by anti-money laundering rules. This regulatory lapse underscores the importance of stringent measures to prevent unlawful activities, with the AGCO emphasizing the critical role of casino operators as front-line partners in this effort.
Penalty Details:
The imposed monetary penalty of CA$70,000 reflects the seriousness of the compliance failure. The AGCO, as the regulatory authority, is steadfast in its commitment to protecting public interest and safety, employing stringent standards for casino operators to prevent unlawful activities, including money laundering.
CEO’s Statement:
Karin Schnarr, CEO and registrar at AGCO, highlighted the organization’s dedication to safeguarding public interests and safety. She emphasized the need for casino operators to be proactive in preventing potential money laundering activities. The AGCO holds all operators to rigorous standards, emphasizing their role as essential partners in maintaining the integrity of gaming sites in Ontario.
Comparison with Previous Incidents:
This recent penalty echoes a broader trend of regulatory actions within the Canadian gaming industry. Notably, AGCO previously issued a CA$150,000 monetary penalty to PointsBet Canada for failing to meet responsible gambling requirements. The violations included neglecting to assist a customer experiencing potential gambling harm and failing to enforce cooling-off periods for canceled deposit limits.
Operator’s Right to Appeal:
As Fallsview Casino Resort contemplates its next steps, it retains the right to appeal the imposed penalty. The AGCO’s commitment to maintaining stringent standards for AML compliance and preventing unlawful activities underscores the significance of proactive measures in the gaming industry to ensure public safety and integrity.
Casino operators must remain vigilant, actively identifying and reporting high-risk situations to regulatory authorities to uphold the industry’s credibility and protect the public interest.