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ILLEGAL GAMING
Highlights
Gaming revenues in Canada continue to increase. Many of organized
crime’s criminal activities such as drug trafficking, money laundering
and enterprise crime offenses are financed by illegal gaming profits.
Illegal Internet gaming poses a new challenge to law enforcement. Its promise of quick profits has attracted the attention of most of the organized crime groups active in Canada.
In Western Canada, video gaming and lottery machines are the newest, and possibly the largest, illicit source of gambling income available to organized crime groups. The machines can earn up to $2000 per machine, per week, making this an extremely lucrative business. The cost of the machines ranges between $2500 and $5000 and is quickly paid off. Organized crime groups including the HELLS ANGELS, Asian-based organized crime, Traditional organized crime, and East European-based groups are all involved in the illegal operation of these machines.
Electronic gaming devices and virtual gaming over the Internet are attracting
the interest of organized crime groups. Within the Internet vice
industries there appear to be relationships between suppliers of pornographic
material and Internet gaming systems. The revenue generated by Internet
gambling operations is significant and many are willing to risk prosecution.
Winnipeg currently has two casinos and plans are underway to begin
the construction of five more casinos throughout Manitoba in the near future.
The casino operators and management are aware of the potential for organized
crime involvement and money laundering and have introduced policies and
procedures to minimize the risks.
In 1999 in Ontario, the Ontario Illegal Gaming Enforcement Unit that was established to combat illegal gaming investigated 241 occurrences. A total of 941 charges were laid against 623 persons. During the year, 498 video gambling machines and an additional $1,026,269 worth of illegal gaming equipment were seized. Over $400,000 was seized from accused individuals and over $669,000 in fines and forfeitures were realized.
There have also been investigations into online gambling involving East European-based and Traditional organized crime groups. Sentences for convicted operators in Central Canada do not seem to deter illegal gaming offenses.
Internet gambling is largely unregulated. The Ontario government has begun to study how to regulate these operations that, in many cases, are international. An Internet gaming working group that represents four Ontario government ministries will be issuing a report with recommendations for action in the late summer or early fall of 2000.
The Atlantic provinces seem to be viewed by certain organized crime groups involved in illegal gaming as a relatively safe haven and possibly an area of future operation.
Outlook