Auditor General says government is adequately managing gaming integrity risks in casinos

VICTORIA — The government and B.C. Lottery Corporation are supervising the province’s casinos adequately to ensure that error, criminal exploitation and employee dishonesty are minimized, according to Auditor General Wayne Strelioff.

But Strelioff says there is still room for some improvement in ensuring that B.C.’s casinos meet the highest possible standards of integrity.

Strelioff today released his report on the audit of the management of gaming integrity risks in casinos in the province. The report highlights the work done by his office in examining the controls over industry participants, the equipment used in the casinos, the conduct of gaming activities themselves, and the measures taken to ensure government receives its correct share of casino revenue.

Strelioff notes that three potentially major consequences can arise for a government that fails to ensure that strict integrity is maintained in the casinos in its jurisdiction. Unsavoury elements, such as organized crime and dishonest individuals, may become involved in the industry, and that in turn can pose a threat to patrons as well as to honest participants in the industry. If the problem grows large enough, patrons may lose confidence in the industry and stop visiting casinos.

That could lead to a significant drop in government revenues. Thirdly, government may not receive all the revenue to which it is entitled.

Over-all, Strelioff found, the government, through the Lottery Corporation and the Gaming Policy and Enforcement Branch (GPEB), is adequately managing the risks so as to prevent that sort of negative consequence.

However, the report makes 13 recommendations that would further improve controls on the industry. Strelioff would like to see surveillance strengthened in casinos and see GPEB improve its regulatory processes and its reporting on integrity issues. He suggests that government confirm that the highest priority of the General Manager of GPEB is to ensure the integrity of gaming in the province.

In their joint response, the GPEB and B.C. Lottery Corporation stated that the recommendations in the report will be used as a guide to improve the regulation, conduct and management of casino gaming in the province.

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2005/06 Report #5 – Keeping the Decks Clean: Managing Gaming Integrity Risks in Casinos.

This report is available:

Toll free enquiries by dialing Enquiry BC at 1-800-663-7867 (in Vancouver 604 660-2421) and requesting a transfer to 387-6803.

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