Illegal casinos: the president of Loto-Québec says he is worried

The proliferation of illegal casinos, operated privately in Quebec’s indigenous territory, greatly worries the president and CEO of Loto-Québec, Jean-François Bergeron.

“They have questionable practices, they have questionable shareholders, they have interests that are questionable and ways of doing things that are also questionable,” reacted the big boss of Loto-Québec on Wednesday, on the sidelines of the presentation of his most recent financial results.

The latter expressed himself thus in response to questions from the Journal relating to the operation of casinos run by private companies. To illustrate his thinking, Mr. Bergeron took as an example the particular case of the Grand Royal casino in Wôlinak, an Abenaki community in Centre-du-Québec, whose activities once again attracted attention this week, as part of a defamation lawsuit.

Mr. Bergeron immediately denies wanting to limit competition against his organization. “For me, competition is okay, that’s not what’s worrying […] We have a gaming lounge in Trois-Rivières and our gaming lounge has never been better. There was no impact [sur le plan financier]».

But given what he knows or hears about the operations of the Wôlinak casino or others, the CEO of Loto-Québec believes he cannot do anything other than worry. “There is nothing reassuring, there is nothing that would allow us to rejoice. Beyond the competition, there is something here that should worry. And I, for public health, I am worried.

From Wôlinak to Kahnawake

A - investigation revealed that the Wôlinak casino, opened two years ago, without authorization from the Quebec government, would be controlled by a nebulous group of private investors, represented by a certain Josh Baazov, through from the company Tribal Gaming.

However, this Quebec businessman was convicted of fraud and drug trafficking in the past. Additionally, he is reportedly being prosecuted in Israel for his alleged involvement in phone hacking.

Last spring, the Kahnawake Band Council, a suburb of Montreal, closed a casino operating under the name “Magic Palace”. An investigation by Mohawk authorities suggested that the establishment was controlled by a man of Albanian origin, involved in money laundering operations on behalf of the Mexican Sinaloa cartel.

The CEO of Loto-Québec says he is equally concerned about the ever-growing popularity of gaming platforms and online sports betting. In this segment, the state-owned company says it continues to gain ground and estimates that it currently holds 60% of this market. Its longer-term objective is set at 70%.

Sharply increasing results

Loto-Québec presented sharply increased results on Wednesday for the second quarter, which ended on September 30.

During this period, it achieved sales of $814.2 million, an increase of 16.1%, and a net profit of $421.6 million, an increase of 18.5% compared to the same period. last year.

This performance is mainly attributable to an explosion in sales made in the province’s casinos and gaming lounges during the quarter. They amounted to $333.9 million, a jump of 32.2% compared to last year, marked by a labor conflict.

During this strike, Loto-Québec casinos remained open, but with reduced opening hours and service offerings.