A major scandal has rocked the luxury hotel group Wynn Resorts following an investigation into unlicensed foreign betting at their Las Vegas subsidiary. The decade-long case, conducted by the Department of Justice (DOJ), uncovered a range of illegal activities, leading the publicly traded company to forfeit $130 million as part of a non-prosecution agreement.
Although the Southern District of California, which prosecuted the case, described the settlement as the largest forfeiture by a casino related to criminal wrongdoing, Wynn Resorts has maintained that the forfeiture is not a fine and that the case did not amount to money laundering. However, Wynn Las Vegas (WLV) admitted to using unregistered money-transmitting businesses to circumvent the traditional financial system.
The operation involved a complex network of agents and payments aimed at evading U.S. and foreign laws in Latin America and China. One independent agent reportedly carried out over 200 transfers totalling more than $17 million. Additionally, 15 other defendants had previously admitted to money laundering, unlicensed money transmitting, or other crimes, with penalties exceeding $7.5 million.
This incident reinforces the need for careful scrutiny across the entire gambling sector, where regulatory standards must be met without exception. Online casinos, for instance, are often subject to rigorous checks. For players, the transparency of online operators – such as those offering new casino no deposit bonuses brought to you by NoDepositCasino.guide – helps build confidence in their practices, making the online gaming experience safer and more enjoyable.
Evading US Finance Laws
WLV violated U.S. finance laws by collaborating with unlicensed third-party agents to facilitate illegal money transfers. These agents recruited foreign gamblers and used a network of companies, bank accounts, and third-party nominees, particularly in Latin America, to funnel funds into WLV-controlled accounts in the Southern District of California, allowing patrons to access the money for gambling.
The Justice Department outlined key methods used to transfer funds between WLV and individuals in China and other countries. One method, “Flying Money,” involved unlicensed agents using foreign bank accounts to transfer money on behalf of patrons who could not access cash in the U.S. Another scheme, called “Human Head” gambling, involved proxy gamblers placing bets for individuals unable or unwilling to do so due to anti-money laundering laws.
Prosecutors revealed that an independent agent conducted over 200 transfers, worth nearly $18 million, on behalf of more than 50 foreign patrons through accounts controlled by WLV. The casino also processed transactions for individuals with criminal histories, including a person who had served six years in a Chinese prison for illegal financial activities and another barred from entering the U.S. for whom WLV facilitated $1.4 million in transactions in 2018.
These actions, which evaded Bank Secrecy Act requirements, were classified as money laundering. Such practices pose serious risks to the gambling industry, undermining its integrity and exposing it to heightened regulatory scrutiny and reputational damage. Federal oversight is crucial in preventing illegal funds from infiltrating legitimate businesses, ensuring casinos operate lawfully and transparently.
Ripple Effect
Such practices pose significant risks to the gambling industry. Casinos are expected to maintain strict compliance with U.S. financial laws to prevent illegal funds from infiltrating legitimate businesses. Federal oversight ensures that casinos remain clean, safe, and lawful entertainment venues. When a high-profile casino like Wynn Las Vegas is involved in illegal financial activities, it undermines the integrity of the industry, potentially leading to increased regulatory scrutiny, loss of public trust, and damage to the industry’s reputation as a whole.
On-going Issues
The investigation didn’t mention former CEO Steve Wynn. Since 2018, the parent company has faced legal issues related to his departure after sexual misconduct allegations surfaced. Wynn’s Las Vegas attorneys did not comment on the settlement. Wynn, 82 and living in Florida, says he has no ties to the company and denies the allegations. He resigned from Wynn Resorts, sold his shares, and left the board. He agreed to sever ties with the industry and pay a $10 million fine without admitting wrongdoing.
Wynn Resorts was fined $20 million in 2019 by the Nevada Gaming Commission for not investigating the allegations before Wynn’s departure. Massachusetts regulators fined the company and an executive $35.5 million for not disclosing the allegations during the Encore Boston Harbor licensing process. The company did not admit wrongdoing.
