Concerns are rising over unregulated casinos in Quebec’s Indigenous territories, particularly the Grand Royal casino in Wôlinak, which is linked to questionable practices and dubious investors, including a businessman facing legal issues. While Loto-Québec’s CEO, Jean-François Bergeron, acknowledges the importance of competition, he emphasizes the potential public health risks associated with these operations. Despite challenges from illegal casinos and the growth of online gaming, Loto-Québec reported impressive financial results, with significant increases in sales and profits.
Concerns Over Illegal Casinos in Indigenous Territories
The rise of unregulated casinos run by private entities within Indigenous territories in Quebec poses a significant challenge for Jean-François Bergeron, the CEO of Loto-Québec. His apprehension stems from the dubious practices and questionable backgrounds associated with these establishments.
In a recent statement during the unveiling of Loto-Québec’s latest financial results, Bergeron shared his unease regarding these operations. “They exhibit questionable practices, and their shareholders and interests raise concerns,” he remarked. His comments were prompted by inquiries into the activities of private-run casinos, particularly highlighting the Grand Royal casino located in Wôlinak, an Abenaki community in Centre-du-Québec, which has been under scrutiny due to ongoing legal proceedings.
Competition vs. Public Health Concerns
Despite his concerns, Bergeron clarified that he does not wish to stifle competition within the gaming industry. “I welcome competition; that’s not my worry. Our gaming lounge in Trois-Rivières is thriving,” he stated. However, the alarming information he has gathered about the operations of casinos like the one in Wôlinak raises serious red flags for him.
“There’s nothing reassuring about these operations. It’s troubling for public health,” he expressed, emphasizing his commitment to safeguarding community wellbeing.
A recent investigation by Radio-Canada revealed that the Wôlinak casino, which opened two years ago without the necessary government approval, is allegedly linked to a mysterious group of private investors led by Josh Baazov, a businessman with a controversial past involving fraud and drug trafficking. Furthermore, Baazov is reportedly facing prosecution in Israel related to phone hacking allegations.
In another incident, the Kahnawake Band Council near Montreal intervened to shut down the Magic Palace casino, following an investigation suggesting its ties to an individual involved in money laundering for the Sinaloa Mexican cartel.
Bergeron also voiced concerns regarding the rapid growth of online gaming and sports betting platforms. Despite these challenges, Loto-Québec has managed to expand its presence in this sector, currently holding a 60% market share with aspirations to reach 70% in the future.
Impressive Financial Results
In the recently concluded second quarter, Loto-Québec reported remarkable financial performance. For the period ending September 30, the company recorded sales of $814.2 million, reflecting a 16.1% increase. Additionally, net profits soared to $421.6 million, marking an 18.5% rise compared to the previous year.
This substantial growth can be attributed to a significant surge in sales within the province’s casinos and gaming lounges, which totaled $333.9 million—an impressive 32.2% increase from last year despite facing challenges from a labor dispute. Throughout this strike, while Loto-Québec’s casinos remained operational, they did so with reduced hours and limited services.