Esquimalt man charged in illegal Saanich gaming operation as BC faces offshore casino enforcement gaps. Ontario’s model offers solution.
An investigation into an illegal gaming operation in Saanich has resulted in multiple charges against an Esquimalt man, highlighting the ongoing challenges Canadian provinces face in regulating gambling activity both within and beyond their borders.
The BC Prosecution Service approved charges on November 21 against Bryan William Toth, 55, in connection with the investigation. Toth faces charges of keeping a common gaming house, possession of proceeds of crime, and money laundering. On November 26, Toth turned himself in to the police and was released on conditions until his next court appearance.
The investigation was initiated in January 2024 by the Combined Forces Special Enforcement Unit of British Columbia’s (CFSEU-BC) Joint Illegal Gaming Investigation Team. Over a period of almost two years, officers gathered evidence confirming multiple people were involved in the operation and management of an illegal gaming establishment located in Saanich.
In August 2024, enforcement action led to the execution of search warrants in both Saanich and Victoria, with assistance from the CFSEU-BC Island Team, the CFSEU-BC Uniform Gang Enforcement Team, the Saanich Police Department, and the Victoria Police Department. Fourteen people were arrested during the operation.
Officers seized two poker tables, several thousand poker chips, multiple electronic devices used by alleged managers of the gaming house, ledgers, tax documentation, and approximately $17,000 in cash.
The Domestic vs. Offshore Divide
Toth’s case underscores a critical distinction in Canadian gambling law: running an illegal gaming operation within Canada’s borders is subject to prosecution under the Criminal Code, while overseas gambling operations exist in a complex legal grey area that makes enforcement extremely difficult.
The key reason Toth faces charges is that his operation was conducted within Canadian territory. Operating an illegal gaming house in Canada violates Section 207 of the Criminal Code, which gives provinces exclusive authority to conduct and manage gambling operations within their jurisdictions. Anyone operating without proper provincial authorization can face criminal charges.
However, offshore casino operators face virtually no risk of prosecution despite accepting Canadian players. While it’s technically illegal under Canadian law to operate an unlicensed gambling site serving Canadians, enforcement against overseas operators is nearly impossible due to jurisdictional limitations. To date, the RCMP has not brought a single case against an offshore gambling operator, as doing so would require navigating complex international extradition processes and proving jurisdiction over foreign entities. This enforcement gap has created what many consider a black market for online gambling in provinces like British Columbia, where only the government-run PlayNow.com is officially licensed to offer online casino services.
Despite this monopoly, hundreds of offshore casinos licensed in jurisdictions like Malta, Curaçao, and Gibraltar openly accept BC players with no legal consequences.
Ontario’s Innovative Approach
British Columbia has explored creating an Ontario-style iGaming licensing framework to address this challenge, though no concrete plans have been announced. Ontario’s system, launched in April 2022, is widely regarded as one of the most intelligent regulatory approaches in North America.
Rather than attempting to ban offshore casinos, an unenforceable proposition, Ontario created a competitive licensing market through the Alcohol and Gaming Commission of Ontario (AGCO) and its subsidiary iGaming Ontario. Private operators can register and offer gambling services legally within the province, creating a regulated alternative to offshore sites.
What makes Ontario’s approach particularly effective is AGCO Standard 1.22, which requires all registered gaming suppliers to cease any agreements with unregistered operators targeting Ontario players. This means major software providers like Evolution Gaming or Pragmatic Play, if they want to be registered in Ontario and serve the province’s lucrative licensed market, must ensure their games are geo-blocked from offshore sites for Ontario players.
For example, if Evolution Gaming partners with an offshore casino like Snatch Casino, Evolution must ensure that Ontario players can access Snatch Casino and cannot play Evolution’s games. Failure to comply can result in substantial fines; operators have faced penalties up to $70,000 for offering uncertified games or working with unregistered suppliers. The AGCO has demonstrated it will enforce these standards rigorously.
This creates a powerful incentive structure: software providers must choose between supplying the e-regulated Ontario market or continuing to serve Ontario with offshore operators. Most major providers choose the regulated market, gradually reducing the game quality and appeal of offshore sites for Ontario players.
For those concerned about the risks of offshore gambling, more information is available about identifying reputable versus problematic offshore casinos.
The Enforcement Challenge
While Ontario’s model shows promise, it cannot completely eliminate offshore gambling. The internet’s borderless nature means determined players can always find ways to access international sites through VPNs and other workarounds. However, by creating a robust, competitive licensed market and leveraging supplier relationships, Ontario has achieved an 83.7% channelization rate—meaning most players choose regulated sites. As Bryan William Toth’s case demonstrates, authorities can effectively prosecute illegal gambling operations within Canada’s borders. The real challenge lies in addressing the thriving offshore market that operates beyond traditional enforcement reach.
Ontario’s innovative regulatory framework offers a template, but whether other provinces, such as British Columbia, will follow remains to be seen.
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