Industry

B.C Casinos Claim Revenues Dip Due To Anti-Money Laundering Laws

Casino operators in British Columbia have claimed that the new anti-money laundering laws that were recently introduced in Canadian province have had a negative impact on gaming revenues. The two casinos that claimed a dip in revenue were the River Rock and Parq casinos which are located in the Lower Mainland.

In August, financial results that were released showed that Great Canadian Gaming Corporation suffered declines in revenue over the first half of 2018. They partially attributed the decline to a drop in earnings from casino tables at the River Rock Casino in Richmond. According to Great Canadian Gaming Corporation, the decline is due to the new rule that forces casinos to disclose sources of cash deposits or bearer bonds that exceed $10,000. Great Canadian’s revenue fell by five percent which equates to $6.6 million in the same period.

The Parq casino’s main shareholder, Dundee Corp., also blamed the new anti-money laundering laws for a decline in their revenue in the first half of 2018. The new rules came into effect in December 2017 at the recommendations that arose from an independent review that was conducted by former RCMP deputy commissioner, Peter German.

The BIV Interview

Why Was There A Review?

The B.C. government ordered the review due to concerns of high-rolling Chinese VIPs buying chips with huge wads of money that could possibly have been “proceeds of crime”. A confidential report that the B.C. Lotteries Corp. had commissioned outlined those concerns. It was found that the River Rock Casino accepted $13.5 million in $20 bills in July 2015. German concluded in his final report that casinos in the Lower Mainland had turned into “laundromats” for organized crime. The laundered money came from illegal enterprises such as drug trafficking and shady real estate deals.

Government Stands Firm

B.C.’s Attorney General, David Eby, offers no apologies for putting the new anti-money laundering rules in place. He said that suspicious transactions at casinos throughout the province was down to $200,000 as of March which is a very significant drop from July 2015 when it is estimated that $20 million worth of suspicious transactions took place.

He went on to say that the government was aware that implementing the strict measures would cause some revenue reductions. Eby also said that the government is urging Canadian casinos to focus more on lower-stakes gaming tables and move away from the high-roller tables which are impacted more by the new rules.

Paul Butcher

Hi, I am the Chief Editor of top10casinowebsites.net, this site is dedicated to all thing casino. I have been working around the casino industry for the last 12 years, with different brands. The main purpose of this site is to keep you informed with the latest news and offers around

Share
Published by
Paul Butcher

Recent Posts

LV Sands, Concerned About Online Competition Amid Plan to Build $6bn Casino

Summary: Las Vegas Sands chairman and CEO Rob Goldstein is concerned about the impact of…

4 weeks ago

Biloxi Casino Plans Advance as MGC Considers Two Venues

Summary: Tullis Gardens Hotel and the Tivoli development are in the works. The casinos would…

1 month ago

Rio Hotel & Casino Finishes Phase One of Massive Property Renovation Project

Summary: Rio Hotel & Casino has completed phase one of its multi-year property-wide renovation project.…

2 months ago

Industry Heavyweight Execs Talk Tech Future at TribalNet Conference & Tradeshow

Summary: Monday’s TribalNet Conference & Tradeshow brought together gaming industry executives who discussed the future…

2 months ago

Nevada Regulators Propose Solution for Armed Casino Security Shortage

Summary: The Nevada Gaming Control Board addressed the shortage of armed casino security following the…

2 months ago

Venetian Waiting for Final Approval for $550m Dividend Distribution

Summary: The Venetian in Las Vegas is getting ready for a massive dividend distribution. The…

4 months ago