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But IIGET managers in January 2009 filed a threat-assessment asking for an expanded role, and warning of the potential influence of organized crime in B.C. Lottery Corp. regulated casinos.

Instead, in April 2009, B.C.’s illegal gambling task force was disbanded.

“IIGET’s budget was cut due to exigent funding pressure on the primary funder, BCLC, and a perceived lack of effectiveness,” the March 2016 internal memo, obtained in a freedom-of-information request, says. “Since this time, investigations and enforcement of illegal gambling activities has been conducted by individual police departments in an ad-hoc manner.”

IIGET received just over $1.5 million in funding each year it operated, government documents say, while B.C.’s gaming industry generated about $2.6 billion in revenue per year.

The memo says that as of March 2016, “there has been a significant increase in the use of illegal gaming houses in the province and the legitimization of proceeds of crime through B.C.’s gaming facilities.”

The memo also indicates that since 2011 in B.C. there have been no charges laid in relation to common gaming houses.

These outcomes mirror the concerns that IIGET warned of in its January 2009 threat report for the B.C. officials that governed it.

That report, obtained by Postmedia News in a freedom of information request, cryptically noted: “A conflict of interest or perception of corruption undermines the integrity of gaming in B.C. and so this is a very important part of the report.”