A city councillor is calling for answers surrounding one of the newest business deals between Toronto and the provincial government.
Councillor Mark Grimes took to social media this week to raise red flags over a company at the centre of a money laundering investigation in British Columbia.
OLG chose Great Canadian Gaming (River Rock) to run Woodbine Casino. TO Council needs answers @PlayOLG #TOpoli https://t.co/WFO0pungjM
— Councillor Grimes (@Mark_Grimes) October 16, 2017
Great Canadian Gaming is part of the winning bid to build and run a new casino at Woodbine Racetrack, and operate slots across the Toronto area.
A report released last month by BC's gaming enforcement authorities accuses Vancouver's River Rock Casino, which is owned and operated by Great Canadian, of knowingly accepting millions of dollars worth of suspicious cash transactions.
The allegation is that the company allowed the flow of dirty money through high-roller gamblers from China.
Police believe there's a possibility that the alleged money laundering is tied to an international drug ring.
On Wednesday, the RCMP charged 2 men behind a money-transfer company called Silver International Investment -- which has connections to Great Canadian and River Rock Casino.
Investigators claim Caixuan Qin and Jian Jun Zhu laundered $500 million worth of drug money, using Silver as an illegal bank.
The allegation is that Silver would hire eager gamblers from China to go on gaming trips to River Rock with hockey bags full of laundered cash.
None of the accusations have been proven in court, and the head of Great Canadian Gaming insists that the company abides by all of Canada's rules surrounding gambling and finance.
However, the British Columbia government last month announced plans for a wide-reaching investigation into money laundering across the gaming sector.
About a month before the BC government made this information public, the Ontario government's gambling agency announced it had selected Great Canadian and Brookfield Business Partners LP will take over slots at Woodbine, Ajax Downs and the Great Blue Heron Casino in a 22-year agreement.
When asked about whether or not he has concerns about OLG's new business partner, the Minister responsible for the agency admitted he hadn't heard about the allegations.
Charles Sousa stresses the process by which OLG picks its contractors is "independent," and that those relationships are a boost to Ontario's bottom line.
Ontario Lottery & Gaming spokesperson Tony Bitonti says the agency takes fighting money laundering "very, very seriously" but adds that there's only so much OLG can say, given that the case involving Great Canadian and its Richmond, BC operation is before the courts.
He describes anti-money laundering oversight at Ontario gaming operations as "rigorous and strict."
Bitonti was not able to say whether or not OLG knew during bidding for the casino contract that its hopeful business partner was under investigation.
He isn't able to comment on whether or not the allegations would have disqualified Great Canadian from winning the bid.
Bitonti goes on to say that the agency is "confident in the decisions we have made" and that it will "monitor the situation in BC and look at it as it develops."