Online Gambling Linked to Fentanyl Trafficking in Canada
Canada’s financial intelligence agency, Fintrac, has raised concerns that online gambling platforms are being used to launder profits from fentanyl production and trafficking.
Fentanyl pills over dollar bills. Canada warns of fentanyl money laundering through online casinos.
LISTEN TO THIS ARTICLE:In a newly issued operational alert, the Financial Transactions and Reports Analysis Centre of Canada puts forward evidence that individuals are depositing and withdrawing money from Canadian online casinos to disguise illicit proceeds from fentanyl and other opioid sales as gambling transactions.
The alert outlines how known fentanyl traffickers have frequently transferred funds to digital gambling sites, receiving payouts through payment processors based in Canada, Malta, and the United Kingdom.
5,000 Suspicious Transactions Between 2020 and 2023
To help operators detect illegal activity, the alert identifies numerous red flags for businesses, particularly in relation to highly addictive fentanyl.
As part of its investigation, Fintrac reviewed about 5,000 suspicious transaction reports tied to fentanyl and synthetic opioids filed between 2020 and 2023. Most reports related to the domestic distribution of synthetic opioids within Canada, though some revealed the import of precursor chemicals and equipment from China and, to a lesser extent, India for local opioid production.
The agency also analyzed data from international counterparts, other partners, and public sources to identify emerging trends. According to the alert, organized crime groups are increasingly involved in the supply of fentanyl in North America, using illicit financial services and the dark web.
These groups are importing or diverting essential precursor chemicals and lab equipment from China and other Asian countries for the production of illegal synthetic opioids. These threat actors are also using darknet marketplaces and virtual currencies to distribute and facilitate payments for fentanyl and other illegal synthetic opioids on an international scale, among other traditional methods.
In one case, Fintrac observed an individual receiving numerous high-value email money transfers via popular casino payment methods. These transactions, disguised as routine e-transfers, hid their connection to online casinos, making them appear legitimate to financial institutions. Despite this, the transactions raised suspicion due to the client’s ties to fentanyl trafficking.
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Opioid Production Increasing in North America
Before 2020, North America was mainly an end market for opioids such as fentanyl, which were often imported directly from China via darknet platforms. However, the alert reveals that trafficking networks have since expanded production and distribution operations within Canada, the U.S., and Mexico.
The agency also flagged wire transfers to high-risk jurisdictions, including China’s Hebei and Hubei provinces, Eastern Europe, and India. These transfers were often routed through intermediary locations such as Singapore, South Korea, and Hong Kong to evade detection.
Large urban centers are key hubs for fentanyl production and the importation of precursor chemicals. The alert mentions that freight companies, particularly those with significant cash transactions, may be using Canada’s trucking industry to transport synthetic opioids.
Transaction data shows that fentanyl supplies move inland from distribution hubs in Vancouver, with shipments going to Calgary, Edmonton, Saskatchewan, and beyond. Similar patterns have been seen in Ontario, where opioids are distributed from Toronto to areas like London, Hamilton, Thunder Bay, and Winnipeg.
Fintrac also suggests that large quantities of fentanyl are being exported from the Lower Mainland of British Columbia and the Greater Toronto Area, with shipments leaving via marine, air, and land transport.
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