Canada’s financial and anti-money laundering watchdog FINTRAC fined two crown gaming corporations, the New Brunswick Lotteries and Gaming Corporation and the Nova Scotia Gaming Corporation, for failing to submit reports of suspicious transactions.
In separate news releases issued on Thursday, Sept. 3, the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) announced that the New Brunswick Lotteries and Gaming Corporation paid a fine of $399,712.50, while the Nova Scotia Gaming Corporation paid a penalty of $231,826.
Both government entities allegedly violated Canada’s federal Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) and associated regulations. FINTRAC found that both of the two organizations failed to submit suspicious transaction reports when there were reasonable grounds to suspect money laundering or terrorist activity, which is categorized as a “very serious” violation.
FINTRAC said that both entities missed indicators of potential money laundering, including:
- Use of common identifiers such as addresses and phone numbers by multiple players
- Players producing seemingly false, counterfeit, or altered information or identification
- Notification of a chargeback on the deposit method used by a player, which is indicative of unauthorized use
“The obligations in [PCMLTFA] deter criminals and terrorists from operating in the legitimate economy and ensure that FINTRAC receives the reporting needed to generate actionable financial intelligence in support of law enforcement and national security investigations,” said FINTRAC’s Acting Director and CEO Stéphane Sirard. “We will take firm action, when it is required, to ensure that businesses do their part and fulfill these obligations.”
The federal agency said that both New Brunswick Lotteries and Gaming and Nova Scotia Gaming paid their fines in full and the cases are now closed.
Nova Scotia violations related to Atlantic Lottery iGaming
Canadian Gaming Business reached out to the New Brunswick Lotteries and Gaming Corporation (NBLGC) and the Nova Scotia Gaming Corporation seeking comment.
New Brunswick Finance and Treasury Board Minister René Legacy stressed via email that “the degree of real harm associated with any of the audit findings was minimal, and no evidence of money laundering was found.” The NBLGC has addressed the administrative deficiencies identified by FINTRAC, added Legacy, and “we are confident we have complied with our legal and regulatory obligations.”
In addition to fining both government gaming corporations for failing to submit suspicious transaction reports, FINTRAC penalized Nova Scotia Gaming for other violations:
- Failing to develop and apply written compliance policies and procedures that are kept up to date
- Failing to assess and document the risk of a money laundering or a terrorist activity financing offence
Nova Scotia Finance and Treasury Board Communications Director Rachel Boomer told Canadian Gaming Business that Nova Scotia Gaming’s administrative penalties were primarily related to Atlantic Lottery Corporation (ALC) online casino operations in the province.
She added that reports were not issued for two transactions totaling approximately $750 and $465 that FINTRAC considered potentially suspicious, but, like New Brunswick Minister Legacy, stressed that there was no evidence of money laundering.
“We take this seriously,” Boomer added. “We investigated immediately, banned and suspended the players, and have changed our policies to address FINTRAC’s concerns. We continue to work diligently to ensure our gaming operations do not support money laundering or illegal activity.”
FINTRAC also fined Atlantic Lottery $200K+ in May
New Brunswick Lotteries and Gaming and Nova Scotia Gaming are the respective government gaming corporations of their provinces. They are each also shareholders in ALC, which is the governmental gaming operator jointly owned by all four Atlantic Canada provinces.
ALC serves as the primary public lottery and online gaming operator in that region. In collaboration with the respective provincial crown corporations, it rolled out online casino gaming in all four Atlantic provinces over the last few years:
- New Brunswick in 2020
- Nova Scotia in 2022
- Newfoundland and Labrador in 2023
- Prince Edward Island in 2026
Separately from the penalties announced this week, FINTRAC fined ALC a total of $212,025 in May of this year for similar violations related to suspicious transaction reporting:
- Failure to submit a suspicious transaction report where there were reasonable grounds to suspect links to money laundering or terrorist activity
- Failure to keep written compliance policies and procedures up to date
- Failure to assess and document the risk of financial crimes
Like the New Brunswick and Nova Scotia crown corporations, the Atlantic Lottery paid the fine in full and the case is closed.
ALC said in a public statement that although it may not agree with FINTRAC’s punishment, it believed appealing the fine in court would be a waste of money and “not in the best interest of Atlantic Canadians.”
In contrast, other Canadian gaming entities including the British Columbia Lottery Corporation (BCLC) and the Saskatchewan Indian Gaming Authority (SIGA) last year chose to contest the agency’s claims of wrongdoing by appealing in federal court.
BCLC and First Nations operator SIGA were each fined more than $1m for alleged violations including a supposed failure to report suspicious transactions.
In 2025–26, FINTRAC issued 35 Notices of Violation of non-compliance to businesses across all sectors, the largest annual number in the agency’s history, for a total of more than $247m in penalties.
