Chinese President Xi Jinping’s crackdown on corrupt officials is expected to hit the profitability of the British Columbia Lottery Corp. (BCLC), revealed official documents obtained by Postmedia via freedom of information request. The gambling industry is to feel the squeeze as the Chinese President is targeting the murky world of the corrupt officials for years. Documents revealed that the biggest portion of BCLC’s gambling revenue came from the so-called “whale” gamblers from China and Macau, who do not hesitate to drop millions on a single bet.
A slide presentation prepared by BCLC’s anti-money-laundering director, Ross Alderson, provided a detailed prognosis of the expected result from China’s anti-corruption drive on British Columbia’s gambling revenue. The presentation also provided information about the possible risks, which the gambling revenue reaped from VIP gamblers can hide.
The presentation was firstly introduced in front of Vancouver’s association of certified fraud examiners in November 2016. A BCLC spokesperson explained that the presentation aimed at providing a detailed information regarding the corporation’s anti-money laundering programs. Government documents also allege that an illegal money-transfer business in Richmond used to lend suspected drug-dealer cash to high-roller Chinese gamblers. The “whale” gamblers used large amounts of small bills to buy chips in B.C. casinos.
What Lies Beneath the Surface
Last earlier, Casino Reports produced an article related to the most common profession among the regular VIP rollers, who are allegedly involved in the network. However, Alderson’s presentation suggested that these Chinese high-rollers could be affected by various political and economic factors in China, including alleged corruption among Chinese officials, the dramatic decrease in gambling revenue in Macau, and many others. Among all other factors, the deal between China and Canada to share the illicit assets obtained by Chinese fugitives took a central place.
Alderson’s presentation did not provide any further information regarding the possible effect of the alleged police operations by China in B.C on the VIP gamblers. A well-known case of Chinese agents entering Canada in attempt to catch a financial fugitive refer to Lai Changxing, who is allegedly the kingpin of a billion-dollar smuggling operation in China.
Other documents obtained by Postmedia revealed that B.C.’s gaming policy enforcement branch has conducted an audit in an attempt to find out if any of the top 100 Chinese fugitives has been involved in gambling activities in any of the gambling establishments across B.C. The audit alleged that 8 suspects from China’s “SkyNet List” might have been involved in gambling activities at a certain moment. The Chinese crackdown on corrupt officials, who may be laundering money through B.C. casinos will undoubtedly eat away B.C.’s gambling revenue, but that is a must-step in combating money laundering activities in casinos.
