British Columbia is set to take a strong stand against money laundering in the gambling sector with the introduction of the new Gaming Control Act, scheduled to come into force in April 2026. This legislative overhaul aims to address critical gaps in the province’s regulatory framework exposed by major investigations into money laundering activities, particularly in casinos, by establishing an independent gambling regulator and tightening policies to combat illegal financial activity and fraud.
Background and Legacy Issues of Money Laundering in B.C.
For years, British Columbia’s casinos have been under scrutiny for extensive money laundering. Investigative reports, such as the infamous “Dirty Money” report by Peter German in 2018 and the Cullen Commission inquiry concluded in 2022, revealed billions of dollars in illicit funds flowing through casinos, real estate, and luxury goods purchases. These investigations uncovered a sophisticated “Vancouver model” whereby criminal proceeds from drug sales and other offenses were funneled through gambling establishments using cash facilitators who could deliver illicit cash in large amounts almost anytime, effectively laundering hundreds of millions of dollars from 2008 through 2018.
Internal reports warned of a “massive escalation” in suspicious cash flows at casinos, estimating close to $1 billion laundered over seven years, with gambling operations often failing to question the origins of the money, including large buy-ins of cash sometimes reaching $500,000 in small bills associated with street drug transactions.
Key Features of the New Gaming Control Act
The new Gaming Control Act is a comprehensive legislative response designed to build upon these investigative findings by fundamentally reforming how gambling is regulated in British Columbia. Key elements include:
- Creation of an Independent Gambling Control Office: This new office will serve as an autonomous regulator with full authority to enforce regulations on all gaming activities in the province, including casinos and online platforms like BCLC’s PlayNow.com. The regulator will have powers to issue directives and implement compliance measures without direct ministry intervention, enhancing responsiveness to criminal activity.
- Standards-Based Regulatory Model: The Act establishes a clearer, standards-driven framework to identify, prevent, and respond to money laundering and fraud risks across gambling operations, ensuring consistent and stringent oversight.
- Enhanced Compliance and Enforcement Powers: The regulator and the legislation authorize more rigorous background checks, registration requirements, and monitoring protocols to detect suspicious transactions promptly. This includes mandatory source-of-funds verification for large cash buy-ins and strengthened anti-money laundering (AML) provisions tailored for the gambling sector.
- New Fee Structures: Reflecting increased regulatory costs, the Act restructures fee regimes for gaming licenses and registrations, moving to revenue-based fees for facilities and charitable gaming events. Online gambling platforms will also face updated fee schedules reflecting their expanding role in provincial gaming.
Addressing Past Regulatory Challenges
Historically, British Columbia’s Gaming Policy Enforcement Branch and the BC Lottery Corporation (BCLC) faced criticism and consequences related to AML compliance. For example, BCLC was fined over $1 million in 2025 by FINTRAC for breaches under the federal Proceeds of Crime (Money Laundering) and Terrorist Financing Act, highlighting ongoing enforcement gaps. The Gaming Control Act aims to close these gaps by centralizing powers and enhancing regulatory independence to prevent enforcement delays and politicization.
The Act responds directly to criticisms that previous frameworks allowed suspected dirty money to flow “virtually unimpeded” into gambling venues due to insufficient questioning of money origins or inadequate cash transaction controls. New policies will enforce stricter “know your customer” rules and comprehensive record-keeping to detect suspicious activities more effectively.
Broader Implications
Alongside deterring money laundering, the Gaming Control Act underscores the promotion of responsible gambling and stronger consumer protections. The independent regulator will oversee measures aimed at identifying problem gambling behaviors and ensuring that gambling services operate transparently and fairly.
The provincial government emphasizes that these reforms will not only protect the integrity of British Columbia’s gaming industry but also bolster public trust by safeguarding against exploitation by criminal enterprises and ensuring gaming revenues contribute positively to the community.
British Columbia’s new Gaming Control Act sets a robust legal foundation to combat extensive money laundering and fraud in its gambling sector. Building on landmark investigations and regulatory lessons learned, the Act empowers an independent regulator and introduces systemic changes aimed at curbing illicit financial flows and enhancing compliance. With implementation slated for April 2026, British Columbia is poised to become a model for stringent and effective gaming regulation in Canada.