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The Gaming Control Act, 1992 (the GCA) establishes a scheme and structure for the registration and regulation of the suppliers of goods and services to those organizations which have been licensed to operate lottery schemes. This legislation sets up the Gaming Control Commission (the GCC) and the statutory positions of Registrar and Director who have the legal authority to carry out investigations to ensure compliance with the GCA and its regulations. Pursuant to section 31 of the GCA, the Director appoints investigators to determine if there has been compliance with the GCA, regulations, terms of a licence or terms of registration.
"Due diligence" investigations are conducted on behalf of the Registrar with respect to applicants for registration under the GCA. Section 9(1) provides that:
the Registrar may make such inquiries and conduct such investigations into the character, financial history and competence of an applicant for registration or renewal of registration, a registrant or persons interested in the applicant or registrant, as are necessary to determine whether the applicant meets the requirements of this Act and the regulations.
Section 9(2) provides that if the applicant or registrant is a corporation or partnership, the Registrar may make the inquiries into or conduct investigations of the officers, directors or partners of the applicant or registrant. To facilitate the investigation, the Registrar may, pursuant to section 9(3), require information or material from any person who is the subject of the inquiries or investigation or from any person who the Registrar has reason to believe can provide information or material relevant to the inquiries or investigations.
Company A, a business incorporated in Ontario, and Company B, incorporated in the State of Washington, applied to the GCC for registration as gaming suppliers. Companies A and B are wholly owned subsidiaries of Company D (formerly know as Company C).
Pursuant to section 9 of the GCA, an investigation was conducted into Companies A, B, C and D and their officers, directors and interested persons. At the present time, the Registrar has required that further investigation be undertaken and requested additional information from the applicants. The due diligence investigation is still ongoing and will not be completed until the additional information and material has been supplied and the Registrar makes a decision on the application.
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