Ontario lottery problems not mirrored in Western Canada: officials

Lottery officials in Western Canada are trying to reassure customers after a scathing report in Ontario alleged fraudulent winning claims from employees in retail outlets.

Ontario's ombudsman said in 90 days, his office identified five cases where retailers lied about ticket claims, representing about $15 million paid to internal fraudsters.

The report also says Ontario lottery officials knew about the problems and failed to protect the public.His report called for outside regulation, licensing, criminal background checks of retailers and a zero tolerance policy for dishonesty.

John Matheson, a senior manager with the Western Canada Lottery Corporation, says officials with the organization, which runs lotteries in the Prairie provinces and territories, are taking the situation in Ontario very seriously.

Every winner's file for the past three years has been pulled to examine the person's occupation, he said.

Of the 1,622 wins above $10,000, the corporation found 56 individuals or about three per cent were retail employees, which is within what the corporation would consider an acceptable number.

"That doesn't mean that that kind of activity can't happen here. It can happen in any industry or business, and there is a responsibility to have things in place to protect the players, and for them to take certain steps themselves," he said.

Matheson said screening of employees at Manitoba's 800 to 900 retail sales outlets helps prevent fraud.

"Criminal background checks are done in Manitoba of all retailers who sign up for terminals," he said."Our other two provinces don't do that at present, but they will look at the ombudsman's report and be considering that."

A number of other checks and balances protect consumers here, Matheson said, including ticket checkers, validation slips and, coming in the fall, upgraded terminals at retail outlets that will display winning numbers to customers.