AGCO Issues Second Fine to Great Canadian in Ten Days

AGCO Fines Great Canadian Entertainment CA$170,000 – Second Six-Figure Penalty in Ten Days Over Compliance Failures

Key Takeaways

• The Alcohol and Gaming Commission of Ontario fined Great Canadian Entertainment CA$170,000 over compliance failures at Pickering Casino Resort.
• The regulator cited deficiencies in monitoring high-risk customers and failures to file required Suspicious Transaction Reports.
• This marks the second six-figure penalty against the operator within ten days.
• Great Canadian was previously fined CA$120,000 for using unauthorized gaming system software at four Ontario casinos.
• The company has 15 days to appeal the latest decision to the Licence Appeal Tribunal.

CA$170,000 Fine for Anti-Money Laundering Compliance Failures

The Alcohol and Gaming Commission of Ontario has imposed a monetary penalty of CA$170,000 on Great Canadian Entertainment following a compliance audit of Pickering Casino Resort. According to the regulator, the casino operator failed to adequately identify, assess, and monitor high-risk customers and did not properly report suspicious activity, including potential indicators of money laundering.

The AGCO stated that its audit uncovered several instances in which high-risk patrons were not subject to the required enhanced scrutiny. In addition, the regulator found that Suspicious Transaction Reports were not filed in a number of cases where customers displayed behavior that could indicate potential money laundering.

Dr. Karin Schnarr, Chief Executive Officer and Registrar of the AGCO, said that casino operators are required to take a proactive approach to identifying and reporting suspicious activity. She noted that when high-risk behavior is not properly monitored or reported, safeguards designed to protect the integrity of Ontario’s gaming sector are weakened.

The CA$170,000 penalty reflects what the regulator described as failures to meet established compliance standards. The AGCO has emphasized that it will continue to hold operators accountable to high standards of responsible operation.

Second Six-Figure Penalty Within Ten Days

The latest fine follows another monetary penalty issued to Great Canadian Entertainment just one week earlier. In that case, the operator was ordered to pay CA$120,000 for using unauthorized gaming system software at four of its casinos in Ontario.

Together, the two penalties amount to CA$290,000 in fines imposed within a ten-day period. Both actions were taken by the AGCO as part of its oversight of licensed gaming operators in the province.

The earlier enforcement action related specifically to the use of gaming system software that had not been authorized. The more recent decision concerns compliance with requirements related to monitoring high-risk customers and reporting suspicious transactions.

The separate nature of the violations highlights different areas of regulatory oversight, including technical compliance with approved systems and adherence to anti-money laundering and reporting obligations.

Regulatory Expectations for Monitoring and Reporting

In outlining the reasons for the CA$170,000 penalty, the AGCO pointed to deficiencies in how Pickering Casino Resort handled customers considered high risk. The regulator’s compliance audit identified cases in which required enhanced scrutiny was not applied.

The AGCO also determined that mandatory Suspicious Transaction Reports were not filed in several situations where patrons exhibited potential money laundering indicators. These reporting obligations form part of the broader compliance framework applicable to casino operators in Ontario.

According to the regulator, proactive identification and reporting of suspicious activity are central to maintaining the integrity of the gaming sector. The AGCO’s public statement underscores that operators are expected to identify high-risk behavior, apply appropriate monitoring measures, and ensure that required reports are submitted in a timely manner.

For licensed operators, such compliance obligations are conditions of continued operation in the province. Failure to meet these standards can result in financial penalties and other regulatory actions.

Right to Appeal to the Licence Appeal Tribunal

Great Canadian Entertainment has the right to appeal the Registrar’s decision within 15 days. Any appeal would be filed with the Licence Appeal Tribunal, an adjudicative body that is part of Tribunals Ontario and operates independently of the AGCO.

The appeal process provides operators with an opportunity to challenge enforcement actions or penalties imposed by the regulator. Until any appeal is resolved, the monetary penalty stands as issued by the AGCO.

No further details have been provided regarding whether Great Canadian intends to pursue an appeal in this case.

Our Assessment

The AGCO has imposed two separate six-figure fines on Great Canadian Entertainment within a ten-day period, totaling CA$290,000. The most recent penalty of CA$170,000 relates to failures in monitoring high-risk customers and filing Suspicious Transaction Reports at Pickering Casino Resort, while the earlier CA$120,000 fine concerned the use of unauthorized gaming system software at four Ontario casinos.

The enforcement actions reflect regulatory scrutiny of both technical compliance and anti-money laundering controls. Great Canadian has 15 days to appeal the latest decision to the Licence Appeal Tribunal, which operates independently of the AGCO.