Online gambling is rampant in Canada, and more specifically in Alberta. Of the province’s total population of 5 million, approximately 3.6 million people over 18 years participated in some form of gambling as of 2023. But with the growing popularity of gambling venues, along with the province’s soon-to-launch regulated iGaming market, it’s most important to note the increased reports of gambling-related fraud.
The Alberta Gaming, Liquor and Cannabis Commission (AGLC) months ago issued a warning about misleading social media promotions and gambling apps falsely claiming to represent Alberta’s land-based casinos and Racing Entertainment Centres (RECs). These ads suggested that the venues had expanded their services to include online gambling.
The AGLC clarified that none of the province’s 29 brick-and-mortar casinos were authorized to operate as online casinos. It also reiterated that PlayAlberta remains the only legitimate online gambling site in Alberta and urged residents to be cautious of imitation apps. In recent years gambling fraud has gotten more sophisticated, including a large-scale ATM scam that allegedly took over $1 million from several Alberta casinos.
As Alberta moves towards an open licensing framework like Ontario for its iGaming market, players should stay vigilant, verifying gaming sites and reviewing their transactions regularly. Experts say strong consumer awareness and responsible gambling will be key to preventing future scams and a safe transparent gaming environment.
From Love Scams to Million-Dollar Casino Heists
In July of 2025, Edmonton’s Court of King’s Bench Justice Melanie Hayes-Richards declared Jeffery Paul Kent, 55, a dangerous offender — a title usually reserved for Alberta’s sexual offenders and most violent criminals. This came after Hayes-Richards found the defendant guilty of defrauding five Edmonton women over $175,000 using fake investment schemes, promising them a bright and secure future.
While the amount is just a round-off figure drawn from his intense gambling habit, investigators revealed Kent’s web of deceit extended far beyond those personal scams. Court documents show most of the money stolen from his victims went into Alberta and BC casinos. Kent used gambling to hide the movement of illegal funds and to feed his own addiction.
A few weeks later, a joint investigation by the RCMP, AGLC and FTAC revealed an organized ATM fraud ring targeting multiple Alberta casinos. Five suspects were arrested and charged with money laundering, fraud and cocaine possession. Although the specific casinos in Edmonton were not revealed, this incident is just one of the many that highlight a broader concern of increasing cases of gambling-related fraud across Alberta.
British Columbia, Ontario Also Dealing With Gambling-Fueled Fraud
Despite the rising incidents of gambling-related fraud in Alberta, other Canadian provinces are also grappling with a wave of fraud. In September, B.C. Securities Commission (BCSC) accused a 42-year old Surrey entrepreneur, David Lawrence Pazurik, with running a complex investment scam that funneled investor funds into high-risk gambling activities and personal needs, instead of legitimate business ventures.
According to the BCSC’s investigation, Pazurik convinced several investors to put money into what he called a technology startup with “guaranteed short-term returns.” But financial audits later showed that a big chunk of the money went into casino accounts and online betting platforms. Authorities say Pazurik, used these gambling outlets to disguise the flow of funds, a tactic common in previous provincial investigations.
That same month, the Ontario Provincial Police (OPP), together with the Enforcement Bureau (EB), charged Montgomery McMahon, 45, and Joshua Silver, 36, from Northern Ontario with fraud, identity theft, forgery, conspiracy, money laundering, and other offences. According to police reports, the suspects used deceptive gift cards linked to OLG’s Proline sportsbook for wagering at gas stations in Thunder Bay and Sault Ste. Marie.
Investigators say the two men purchased large quantities of prepaid and counterfeit gift cards and used them to make hundreds of fraudulent bets on sports events. By exploiting weaknesses in the verification systems at self-serve betting terminals, they were able to convert stolen or fabricated card balances into real gambling winnings. Those winnings were then cashed out and the funds “cleaned” and made to appear as legitimate income.
Authorities say the case shows how fraudsters are adapting old school financial crimes to new school gambling platforms. As digital betting expands across Canada, criminals are using sophisticated methods – prepaid cards, online wallets and cryptocurrency transactions – to launder dirty money.
Stay Safe From Gambling-Related Fraud
As Alberta’s iGaming market launches early 2026, experts and regulators are warning players to be aware of the growing risks of fraud. Alberta’s entry into the online gaming world means new ways to play, but also new opportunities for scammers to target unsuspecting players.
Scammers are using more and more clever tactics like fake casino websites, phishing emails and fraudulent promotions to steal your money or personal info. Some even pose as licensed gaming sites or “investment experts” who can guarantee profits from casino or sports betting. Others reach out through social media or chat apps to trick you into sharing your banking info or sending deposits to fake accounts.
To stay safe, experts say to always verify that any gaming site is officially AGLC licensed and has valid regulatory seals. Don’t click random links or “too good to be true” offers and never share your passwords or payment info outside of official sites. Using secure payment methods, enabling two-factor auth and keeping an eye on your account activity can also go a long way in preventing fraud.
The AGLC and law enforcement are working to improve cybersecurity and raise awareness about safe online betting, but personal caution is your best defense. As Alberta’s digital gaming landscape grows, knowing how to recognize and report suspicious activity will be key to being able to play responsibly, without getting scammed.
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