FINTRAC Fines Two Canadian Gaming Corporations

Jonathan Rodriguez

Written by: Jonathan Rodriguez

Published: Mon Sep 07, 2026, 11:00 am ET

Read Time: 4 minutes

FINTRAC Fines Two Canadian Gaming Corporations

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FINTRAC, Canada's financial intelligence regulator, has fined two Atlantic Canadian gaming corporations for anti-money laundering failures. The combined penalties total C$631,538.50.

FINTRAC imposed penalties on the New Brunswick Lotteries and Gaming Corporation (NBLGC) and Nova Scotia Gaming Corporation (NSGC). Both corporations operate within Canada's regulated gaming sector.

FINTRAC announced the penalties on September 3 after completing compliance examinations. NBLGC received a C$399,712.50 penalty, while NSGC received a C$231,826 penalty. Both corporations have paid their penalties in full, and FINTRAC has closed the cases.

The enforcement action highlights the importance of AML controls across Canada gambling markets. It also shows how provincial gaming corporations must comply with federal financial crime reporting requirements.

New Brunswick Corporation Failed to Report Suspicious Transactions

FINTRAC found that NBLGC failed to submit three suspicious transaction reports. The regulator said the corporation had reasonable grounds to suspect links to money laundering or terrorist financing.

The transactions involved several warning signs that should have triggered additional scrutiny. Multiple apparently unrelated players shared addresses, phone numbers or other identifiers.

FINTRAC also identified cases involving shared credit cards among online players. Some accounts also showed connections with apparently unrelated parties.

Other warning signs included suspected false identification and excessive deposits through prepaid cards. Chargebacks also indicated possible unauthorized use of payment instruments.

FINTRAC classified NBLGC's reporting failure as a very serious violation under Canada's AML framework.

The findings add another compliance issue for the New Brunswick gambling sector. They also reinforce the reporting obligations placed on gaming operators that handle customer transactions.

Nova Scotia Gaming Faced Three Violations

NSGC received a smaller penalty but faced three separate violations during FINTRAC's examination.

First, the corporation failed to submit two suspicious transaction reports involving attempted transactions. FINTRAC found several indicators that raised potential money laundering or terrorist financing concerns.

Those indicators included shared player identifiers and suspected false or stolen identification. FINTRAC also cited difficulties establishing player identities and chargebacks involving deposit instruments.

The regulator classified this reporting failure as a very serious violation.

NSGC also failed to maintain complete written compliance policies and procedures. Its policies did not properly document and apply applicable ministerial directives during the examination period.

Additionally, FINTRAC found that NSGC had not completed and documented an enterprise-level AML and terrorist financing risk assessment. The regulator classified both failures as serious violations.

The findings place additional focus on compliance standards within Nova Scotia gambling. They also demonstrate that regulators examine broader AML programs, rather than suspicious transaction reporting alone.

FINTRAC Warns Gaming Businesses to Meet Their Obligations

FINTRAC Acting Director and CEO Stéphane Sirard stressed the importance of compliance following the penalties.

"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 Sirard.

"We will take firm action, when it is required, to ensure that businesses do their part and fulfill these obligations."

FINTRAC's enforcement activity extends beyond these two gaming corporations. Atlantic Lottery Corporation also received a C$212,025 penalty earlier in 2026.

The latest penalties therefore bring the combined penalties involving the three Atlantic gaming entities to C$843,563.50. NBLGC and NSGC are both shareholders in the Atlantic Lottery.

The regulator has also increased its enforcement activity across other industries. FINTRAC said it issued 35 notices of violation during 2025-26, representing a record annual total. Those cases involved more than C$247 million in penalties.

Importantly, the penalties do not establish that money laundering occurred. Instead, FINTRAC penalized the corporations for failing to meet statutory compliance and reporting requirements.

For Canada's gaming industry, the cases reinforce the need for effective monitoring and risk assessment. Operators must also identify suspicious activity and report it when the legal threshold is met.

As FINTRAC continues its enforcement efforts, gaming corporations face growing pressure to strengthen their AML programs. The latest cases show that provincial gaming entities remain subject to the same federal compliance expectations.

Jonathan Rodriguez
Jonathan Rodriguez

Jonathan is an avid basketball fan, and is often looking forward to the next upcoming NBA season when not checking players' stats during games. He also likes to keep his ears on the ground for the latest rumblings in the online casino industry.

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