ALCOHOL AND GAMING COMMISSION OF ONTARIO
IN THE MATTER OF The: Gaming Control Act, 1992, as amended
B E T W E E N:
Registrar, Alcohol and Gaming Commission of Ontario (Registrar)
-and-
Shao Lin Zhu operating as 9-11 Milk (Registrant)
DECISION
Panel: Patricia McQuaid, Vice-Chair, AGCO Decision Date: February 11, 2010 Hearing Location: Toronto, Ontario
Alcohol and Gaming Commission of Ontario 90 Sheppard Avenue East, Suite 300 Toronto, Ontario M2N 0A4 Phone: (416) 326-0366 Fax: (416) 326-5566 Toll Free In Ontario: 1-800-522-2876 Website: www.agco.on.ca
Appearances
Registrar, Alcohol and Gaming Commission ) Daniel Alakas, Representative Shao Lin Zhu, Registrant ) John Lee, Representative
Allegations
1. A teleconference hearing into a Notice of Proposed Order dated November 13, 2009 to suspend the registration of SHAO LIN ZHU (the “Registrant”), operating as 9-11 MILK, 3205 Bathurst Street, Toronto, Ontario, M6A 2B2, as a gaming supplier, in the class of lottery retailer, registration numbers 127858 and 139040, on the basis that there are reasonable grounds to believe that the Registrant will not act as a gaming supplier in accordance with law, or with integrity, honesty, or in the public interest in contravention of the Gaming Control Act, 1992 (the “Act”), was held on February 11, 2010 in the City of Toronto.
Decision
2. Daniel Alakas, Registrar’s Representative, and Mr. Lee, Licensee’s Representative, submitted an Agreed Statement and Joint Submission Regarding Disposition (Exhibit #1) which form part of this decision. It was agreed and admitted that:
SHAO LIN ZHU o/a 9-11 MILK has been registered as a gaming supplier, under the Gaming Control Act, 1992 in the class of lottery retailer since November 2, 2008.
Shao Lin Zhu (Mr. Zhu) is the owner of this retail location.
On June 9, 2009 an undercover officer with the Provincial Illegal Gaming Unit attended 9-11 Milk. A female, later identified as Li Ying Yuan (Ms Yuan) was working at that time. Ms Yuan is the wife of Shao Lin Zhu, owner of 9-11 Milk.
On the aforementioned date, the undercover officer observed two floor model Lucky Eight Line video gambling machines on the premises. The officer inserted a total of $80.00 (in $20.00 increments) into the machine. After several minutes of play the undercover officer had accumulated 500 credits on the machine. The undercover officer asked Ms Yuan to cash out his credits and she paid him $25.00 in cash (.05 cents a credit). Ms Yuan then reset the machine’s credit counter to zero.
As a result of the aforementioned incident, the Illegal Gaming Unit executed a search warrant at 9-11 Milk on August 5, 2009. Both Lucky Eight Line machines, the cash contained within the machine and receipts were seized as evidence. Ms Yuan was charged with Keep Machine for Gambling under section 202(1)(b) of the Criminal Code.
Mr. Zhu states that a male attended the store sometime in 2006 and asked to put the machines in the store. Mr. Zhu states that the man informed him that both the machines and the payout process were legal. The man would then attend the store periodically, check the machine and pay Mr. Zhu a percentage of the accumulated profits. Mr. Zhu did not know this male prior to his attendance at the store.
On October 21, 2009 Ms Yuan attended the Ontario Court of Justice where the charge against her was withdrawn in exchange for Ms Yuan agreeing to make a $1,000.00 charitable donation and Mr. Zhu consenting to the forfeiture of the machines and the cash they contained.
Order
3. Therefore, having considered the Agreed Statement of Facts and Joint Submission Regarding Disposition (Exhibit #1), the Board confirms its oral ORDER that the registration of Shao Lin Zhu, operating as 9-11 MILK, 3205 Bathurst Street, Toronto, Ontario, M6A 2B2, as a gaming supplier, in the class of lottery retailer, registration numbers 127858 and 13940, be SUSPENDED for THIRTY (30) days commencing at 12:01 a.m. on February 12, 2010 and continue consecutively and inclusively until 11:59 p.m. on March 13, 2010.
4. Further, the Board ORDERS the registration shall be subject to the following terms and conditions:
SHAO LIN ZHU o/a 9-11 MILK shall ensure that all employees are aware of, understand and comply with their obligations and responsibilities and those of SHAO LIN ZHU o/a 9-11 MILK under the Act and other relevant statutory or regulatory instruments.
SHAO LIN ZHU shall advise the Deputy Registrar, in writing, within ten days of any and all charges (including any issuances of a summons and/or appearance notice), convictions and findings of guilt, including where an absolute or conditional discharge is granted or other disposition is made, of any charge under any legislation and in any jurisdiction (including but not limited to the Criminal Code of Canada and the Ontario Highway Traffic Act).
SHAO LIN ZHU o/a 9-11 MILK shall ensure that no unlicensed gaming machines are permitted in the premises to which the Registration applies and where Ontario Lottery and Gaming products and/or Break Open Tickets are sold and/or redeemed by the Registrant.
DATED AT TORONTO THIS 11^th^ DAY OF February , 2010
PATRICIA MCQUAID, VICE-CHAIR
Attached
IN THE MATTER OF THE GAMING CONTROL ACT, 1992 S.O. 1992, CHAPTER 24 AND REGULATIONS, AS AMENDED
AND IN THE MATTER OF THE NOTICE OF PROPOSED ORDER TO SUSPEND THE REGISTRATION AS A GAMING SUPPLIER OF SHAO LIN ZHU o/a 9-11 MILK
AGREEMENT
The Registrant acknowledges that legal counsel has been consulted and independent legal advice has been obtained prior to entering into this Agreement.
Agreed Statement of Facts
The Registrant and Registrar’s Counsel agree to the following facts:
SHAO LIN ZHU o/a 9-11 MILK has been registered as a gaming supplier, under the Gaming Control Act, in the Class of Lottery Retailer since November 2, 2008.
SHAO LIN ZHU (Mr. Zhu) is the owner of this retail location.
On June 9, 2009 an undercover officer with the Provincial Illegal Gaming Unit attended 9-11 Milk. A Female, later identified as Li Ying YUAN (Ms. YUAN) was working at that time. Ms. YUAN is the wife of Shao Lin ZHU, owner of 9-11 Milk
On the aforementioned date, the undercover officer observed two floor model Lucky Eight Line video gambling machines on the premises. The officer inserted a total of $80.00 (in $20.00 increments) into the machine. After several minutes of play the undercover officer has accumulated 500 credits on the machine. The undercover officer asked Ms. Yuan to cash out his credits and she paid him $25.00 in cash (.05 cants a credit). Ms. Yuan then reset the machine’s credit counter to zero.
As a result of the aforementioned incident the Illegal Gaming Unit executed a search warrant at 9-11 Milk on August 5, 2009. Both Lucky Eight Line machines, the cash contained within the machine and receipts were seized as evidence. Ms YUAN was charged with Keep Machine for Gambling under Section 202(1)(b) of the Criminal Code.
Mr. ZHU states the male attended the store sometime in 2006 and asked to put the machines in the store. Mr. ZHU states that the man informed him that both the machines and the payout process were legal. The man would then attend the store periodically, check the machine and pay Mr. ZHU a percentage of the accumulated profits. Mr. ZHU did not know this male prior to his attendance at the store
On October 21, 2009 Ms. YUAN attended the Ontario Court of Justice where the charge against her was withdrawn in exchange for Ms. YUAN agreeing to make a $1000.00 charitable donation and Mr. ZHU consenting to the forfeiture of the machines and the cash they contained.
Joint Submissions regarding Disposition
Counsel for the Registrar and the Registrant SHAO LIN ZHU o/a 9-11 MILK jointly submit that the following disposition is appropriate in the circumstances:
The Registrant hereby withdraws the request for a hearing into this matter.
The Registrant agrees that the registration as a lottery retailer of SHAO LIN ZHU o/a 9-11 MILK shall be subject to the following Terms of Registration:
SHAO LIN ZHU o/a 9-11 MILK shall ensure that all employees are aware of, understand and comply with their obligations and responsibilities and those of SHAO LIN ZHU o/a 9-11 MILK under the Act and other relevant statutory or regulatory instruments.
SHAO LIN ZHU shall advise the Deputy Registrar, in writing, within ten days of any and all charges (including any issuances of a summons and/or appearance notice), convictions and findings of guilt, including where an absolute or conditional discharge is granted or other disposition is made, of any charge under any legislation and in any jurisdiction (including but not limited to the Criminal Code of Canada and the Ontario Highway Traffic Act).
LI YING YUAN shall advise the Deputy Registrar, in writing, within ten days of any and all charges (including any issuances of a summons and/or appearance notice). Convictions and findings of guilt, including where an absolute or conditional discharge is granted or other disposition is made, of any charge under any legislation and in any jurisdiction ( including but not limited to the Criminal Code of Canada and the Ontario Highway Traffic Act).
SHAO LIN ZHU o/a 9-11 MILK shall ensure that no unlicensed gaming machines are permitted in the premises to which the Registration applies and where Ontario Lottery and Gaming products and/or Break Open Tickets are sold and/or redeemed by the registrant.
The Registrant, SHAO LIN ZHU o/a 9-11 MILK shall serve a thirty (30) day suspension of their registration as a lottery retailer.
The Registrar and the Registrant SHAO LIN ZHU o/a 9-11 MILK agree that the suspension shall take effect 12:01 a.m. on February 12, 2010 and continue consecutively and inclusively until 11:59 p.m. on March 13, 2010.
Dated this 10th day of February 2010
____________________________ ________________ SHAO LIN ZHU o/a 9-11 MILK Date
Counsel to the Registrant Date
Daniel Alakas Date Counsel to the Registrar, AGCO