Mainstream media again blurs the lines between regulated and illegal online gambling sites

The lines between the regulated and illegal online gambling markets continue to be blurred by the mainstream media.

Further to our coverage raising concerns about Canada’s need to strengthen and update Anti-Money Laundering (AML) laws, the nation’s financial intelligence agency — the Financial Transaction and Reports Analysis Centre of Canada (FINTRAC) — has issued an operational alert that “online gambling platforms are being used to launder proceeds from fentanyl dealing and production,” according to a Canadian Press article written last week by reporter Jim Bronskill.

Trouble is, the story makes no distinction between the plethora of regulated and legal Ontario online gambling platforms — now numbering 82 and counting — and illegal sites. Though, it appears the story is mostly talking about illegal sites.

If so, it’s another reason more provinces should join Ontario in regulating the online gambling sector and drawing as many grey market sites into the legal markets as possible.

It’s also another great reason gamblers should only wager on regulated sites.

Also, it would be nice if something was done to shut down access to illegal sites from Canada.

According to the CP story, FINTRAC has “reason to believe people are depositing and withdrawing funds at online casinos to disguise proceeds from the traffic in deadly fentanyl and other opioids as wagers and winnings.”

FINTRAC prepared the report based on “a sample of about 5,000 suspicious transaction reports related to fentanyl and synthetic opioids filed between 2020 and 2023.” So, it’s possible some of those suspicious transactions occurred at regulated Ontario sites since the market launched in April 2022. But, logic says the numbers are very small compared to criminals laundering money through illegal sites.

In Ontario, not only does the Alcohol and Gaming Commission of Ontario (AGCO) and other provincial agencies monitor for suspicious transactions on the province’s regulated sites, so, too, do the operators. What criminal wants to go the hard route when easier options exist?

Improved AML laws are something both the Canadian Gaming Association is pushing for; it’s also something U.S. President Donald Trump wants to see in Canada, in part to stem the tide of organized crime funding its U.S. activities in Canada.

Trump advisor David Asher, a top U.S. expert on criminal financing, told the CBC in December that Canada needs stronger AML legislation (and other tougher laws on crime) because criminal networks are known to use Canada as a money-laundering hub for cross-border drug trafficking.

"The money laundering that makes drug trafficking work is largely run out of Canada," Asher said.

Paul Burns, the president and CEO of the Canadian Gaming Association, spoke earlier this month with yours truly and Steve McAllister about the need to update AML laws in the true north, strong and free.

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Ruddock on what Ontario online poker numbers could mean for the U.S.

Steve Ruddock had an interesting take in his most excellent Straight To The Point newsletter on Monday.

He was dissecting some of the latest Ontario online gambling revenue numbers as reported by Gaming News Canada on Friday – and many thanks for the shoutout, Mr. Ruddock – when he zeroed in on the poker numbers.

“What really caught my attention is poker’s 2.5% share,” Ruddock wrote. “That’s a pretty solid result in a market of just 15.8 million people.”

He used those numbers to extrapolate how online poker could fare in the United States.

“If online poker were widely available in the US (say, 200 million residents), and if those markets pool players (a trend that is gaining momentum), I can see poker’s share of the US revenue pie reaching 5% or more.

“Based on Ontario’s $155 million haul since April 2022, a US market of 200 million that doubled Ontario’s performance would have generated about $2 billion in revenue over 33 months (about $60 million per month). Maybe there is money in poker, after all? And if online casino continues to be a slow slog, poker-only bills could begin to emerge.”

NorthStar Gaming receives $43.4 million for long-term debt financing

Ontario regulated online gambling platform NorthStar Gaming Holdings Inc. has announced it will receive up to $43.4 million (CAD) in loans from Beach Point Capital Management LP. The deal is subject to final approval from the TSX Venture Exchange. Playtech plc and certain Playtech subsidiaries have agreed to provide credit support for certain obligations under the Credit Facility.

A press release said, “The Credit Facility represents a significant milestone for NorthStar, strengthening its balance sheet and enabling the Company to continue to accelerate its growth initiatives.”

NorthStar chair and CEO Michael Moskowitz said in the release: “This is a pivotal moment for NorthStar, marking the largest financing in our history. This Credit Facility strengthens our balance sheet and directly supports our ability to scale operations and drive the business toward profitability with a single-minded focus.

“We are grateful to Beach Point Capital Management for their trust in our strategy and vision. We are also thankful for Playtech’s steadfast partnership which was instrumental in securing this funding, reinforcing their value both strategically and as a technology provider.”

NorthStar said it would use the loans to repay the aggregate $9.5 million CAD principal amount (plus accrued interest) loaned to it by Playtech pursuant to unsecured, interest-bearing promissory notes dated April 25, 2024, September 13, 2024 and December 16, 2024. It will also use $7 million of the load to “fund an interest reserve account… for working capital and general corporate purposes… and to pay transaction costs in connection with the Credit Facility.”

PROLINE retail sports betting lounges opening at two casinos in B.C.

Two PROLINE-branded retail sports betting lounges are opening soon at casinos in British Columbia.

A Canadian Gaming Business story written by Tom Nightingale and published on Monday said the British Columbia Lottery Corporation (BCLC) will open the first at the Chances Casino Kelowna for a “sneak peek” on Super Bowl Sunday (Feb. 9). That sportsbook will fully open on Feb. 10.

A second PROLINE sportsbook will open in the Parq Casino in Vancouver in March.

The story said the lounge at the Kelowna casino, “will feature a massive 25-foot screen as well as food and drink and PROLINE betting.”

Last fall, prior to the kickoff of the NFL season, BCLC replaced its Sports Action sportsbook with an “expanded and revamped” PROLINE book.

Registration now open for 2025 Canadian Gaming Summit

While we were perusing the internets yesterday afternoon, up popped notification that the Canadian Gaming Summit is ready for registration. The 2025 summit of the Canadian sports betting and gaming industry takes place June 17-19 at the Metro Toronto Convention Centre.

And speaking of registration, we also came across a LinkedIn post from friend of GNC Sue Schneider about a Global Gaming Women Membership Mixer that is scheduled to happen March 31 at the Betty Gaming office in the city below Bolton.

Playson teams up with Ontario operator Titanplay

Gambling content creator Playson has announced a partnership with regulated Ontario online casino site Titanplay.

Playson’s Hold and Win portfolio will be integrated into Titanplay’s via the operator’s Relax Gaming’s aggregation platform.

The new collaboration will give Titanplay customers access to popular Playson titles, including Coin Strike: Hold and Win, Diamonds Power: Hold and Win, and Pink Joker: Hold and Win, among others.

People on the Move

• Our sincerest condolences to the family and friends of Anne Evans, the co-founder of Ygam, who passed away on January 22.
• Dallas McCready will succeed the retiring Patrick Daigle as the new President and CEO of Atlantic Lottery. McCready was formerly the lottery and gaming corp’s Chief Strategy Officer.
• Somewhat surprising news landed Monday from across the pond that William Woodhams is leaving Fitzdares as Chief Executive Officer, effective Friday.
• Alex Dixon is the new CEO at Resorts World Las Vegas.
• Kirk Hendrick is stepping down as Chair of the Nevada Gaming Control Board after the 2025 session of the Nevada Legislature.
• Former Barstool Sports head honcho Erika Ayers Badan joins the board of directors at Vice Media.
• Joe Bennett is retiring from Scientific Games, where he served most recently as Vice President of U.S. Operations for Instant Products.
• Brian Chase, who left FanDuel last summer as Director of Engineering, was introduced last week by the MLB Miami Marlins as its new Vice President, Baseball Systems.
• A trio of promotions within the PWHL leadership team were announced Tuesday: Jayna Hefford to Executive Vice President of Hockey Operations, Amy Scheer to Executive Vice President of Business Operations, and Jen Flynn to Senior Vice President of Business Affairs and General Counsel.
• Also, the PWHL Players Association will have a new Executive Director beginning in March with Malaika Underwood taking over from Brian Burke.
• Elevate names Jim Caruso its first Chief Innovation Officer.
• Former IMG Arena head Freddie Longe joins the board of directors at Low6.
• Camille Wallace, the current Chair of the Board at Canadian Women & Sport, comes on board at FanDuel Canada as Senior Manager, Partnerships.
• Anastasiia Kostenko, formerly of Kaizen Gaming, is the new Head of Affiliate Marketing at Sports Interaction.
• Mickey Blayvas, the former CEO and co-founder of Blazesoft, has launched igaming B2B platforms/solutions business Pepper Logic.
• There’s a further shuffling of the deck chairs, otherwise known as the executive suite at ESPN.
• Jean Camilleri has a new title at Swintt: Account Management Team Lead.
• Matthew Ferrara joins Altenar as Sales Manager.
• Sharon Tal is joining Optimove as Partner Marketing Manager.
• Stephanie Ngosa is hired by Entain as a Management Accountant.
• Rachel Ingle moves into an Associate Project Manager role at Fanatics while Zachary Mikkelson has a new role as Sportsbook Associate. Joshua Jackson also has a new title: Fraud Team Lead.

Classified (Jobs) Information

• A beeg gig alert at FanDuel’s New York offices for a Sportsbook Brand Strategy Vice President.
• Fanatics is searching for a Senior Vice President, Partner Development – College.
• OpenBet is seeking a Legal Counsel - Employment.
• Wanted at Hard Rock Digital’s Toronto offices: a Senior Financial Crime Officer.
• Wanted at Aristocrat Interactive: a Director, North American Customer Success.
• There’s a flurry of hiring activity happening at Flutter International.
• FairPlay Sports Media has a quartet of job openings in the areas of marketing, social media and casino content.
• Gateway Casinos and Entertainment is hiring a Sales and Marketing Assistant in Edmonton.
• Atlantic Lottery is on the lookout for a Marketing Campaign Manager and a Marketing Coordinator.
• EPIC Global Solutions is on the hunt for a Gaming Policy & Consumer Protection Manager - North America.
• DraftKings is on a seek-and-employ mission for its Analytics Department. DK also has Senior Product Manager role that needs to be filled.
• Our friends at SBC are seeking a Business Journalist (LatAm).
• BetMGM Brazil has a spot open in Sao Paulo for a Sportsbook Manager.
• There are jobs a plenty up for grabs with Gambling.com Group.
• Push Gaming has openings for a Lead Animator and an Art Manager.
• Altenar is seeking some additions to its IT team.
• Gambling.com Group is on the lookout for a Freelance Journalist to cover the business of Canadian sports betting and gaming.
• Toronto-based Wasserman is in hiring mode for a Senior Manager, Performance & Insights.
• London-based startup SharpStakes is on the lookout for a Freelance Filmmaker.
• The Worldwide Leader is hiring a Senior Publicist.
• NeoPollard Interactive has an opportunity for a Retention Marketing Strategist at its offices in Lansing, Mich.
• The Columbus Blue Jackets are seeking a Senior Corporate Partnership Development Manager.
• The Canadian Premier League has some vacancies to fill for the 2025 season, including a Director, Digital Marketing and Director, Creative and Brand.
• The New Jersey Devils are in the market for a Senior Data Scientist.
• Canada Basketball has a six-pack of employment opportunities.

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