Violations of B.C.’s gambling law skyrocketed by 735% last year, but there were no charges recommended.
That is according to a comparison of the Gaming Policy and Enforcement Branch ’s last two annual reports.
The report for the year ended March 31, 2015 was finally released May 17, but was not immediately published on the regulator’s website. On the same day, NDP critic David Eby quizzed Mike de Jong, the finance minister who is also responsible for gambling regulation and marketing, at a budget estimates hearing when gambling was the subject for the final hour.
Asked Eby: “Can the minister explain what a [Gaming Control Act] violation is, and can he explain why they appear to be up 735% over last year's numbers? The numbers I have are 385 GCA violations last year. This year, it's 3,215.”
Replied de Jong: “While we're gathering some information to respond to the member's question, I should say…. The member has received the copy of the report. I regret that the copy was filed today. It may well have been on my desk for several days. I apologize for that, but I thought it would be worse to table it tomorrow than today.”
“What I'm still trying to ascertain is a more fulsome description of what types of incidents or alleged violations might be captured by that number,” de Jong said.
At the hearing, there were lengthy delays between Eby’s questions and de Jong’s answers. De Jong had extensive briefing materials and frequently huddled with GPEB assistant deputy minister John Mazure, and B.C. Lottery Corporation CEO Jim Lightbody and CFO Amanda Hobson.
The Gaming Control Act regulates registration, licensing and administration of gambling activities and audit and compliance. Division 2 of the GCA includes offences such as unauthorized lottery schemes, unauthorized gambling by minors, unlawful entry or presence at a casino, and unregistered gambling service providers and workers.
Eby noted that despite the mushrooming in violations, the recommendations to Crown counsel for charges fell from 37 to zero. Despite reminding de Jong of his question more than halfway through the hearing, de Jong did not deliver an answer about the rise in GCA violations.
The report showed there were 60 cases of the 1,642 fraud reports referred to Crown counsel, up 3% from the previous year when only one case was referred to Crown. Fraud increased 8% and loan sharking and cheating reports were up 29%. Suspicious transactions were up 33% to 1,832 but, just as the year previous, none were referred to Crown.
Of 11,213 incident reports, only 75 went to Crown. Police and intelligence agencies were informed of 6,788 cases. The report did not include a comparison with the 2013-2014, when the 7,015 incident reports sparked 98 recommendations to Crown.
Meanwhile, the report showed that $95.8 million of casino profits was distributed to host local governments. River Rock Casino Resort’s $21.8 million in royalties to City of Richmond, up from $17.37 million a year earlier, the biggest increase in B.C.
BCLC reported $1.25 billion net revenue on the year, of which $829 million went to general revenue and $147.3 million to a dedicated health account. Community organizations and charities received $135 million.
GPEB Annual Report 2014-2015 by BobMackin
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