Casino News: Canada Clamps Down on Online Casino Cash Transactions

Canada is looking set to be one of the first countries to clamp down on cash transactions at online casinos. Being as cash transactions have no written record, it is much more difficult to trace where the funds originated from, and also where they will end up. Major concerns over online gambling transactions and money laundering have prompted the Canadian government, and the Lottery Corporation in the province of British Colombia, to consider moves to limit the total amount of cash online gamers are able to deposit at an online casino. Investigations in America, examining large cash transactions, showed that a number turned out to be benefiting crime, drugs and possibly terrorism.

The answer, the Canadian government believes, lies in electronic funding as opposed to cash deposits. Electronic funding means there is a ‘virtual paper trail’ and a record of transactions. This could quite possibly deter money launderers from targeting online casinos. The Canadian Public Safety Ministry is also behind the drive, and is hopeful that players will make  the switch to electronic transactions instead of cash, possibly by incentivising them. This new approach is to make a distinct difference between illegal and legal online gambling. In no way is it designed to hinder the business interests of online casinos.

With so much money laundering going on and online casinos being such easy targets, it makes sense that governments should get involved to stop its spread. There is a possibility that one day, cash transactions in online casinos could be obsolete, but what effects will it have on the industry as a whole?