Casino executives facing intense pressure drive them towards money laundering activities, resulting in significant financial penalties as uncovered by a prominent gaming attorney and author.
Laissez-Faire Casinos: Profit over Ethics?
Commercial Casinos AML Scandals Regulation Regulatory Failures Australia Nevada Knaves & Casinos
Get a load of this, folks! Casinos all over the world are seemingly turning a blind eye to criminal activities due to the pressure on executives to boost their bottom lines. And it's not just any casino. Take a gander at Resorts World Las Vegas, which recently copped a fine of $10.5 million for allegedly flouting federal anti-money-laundering (AML) laws. This hefty penalty, part of a settlement with the Nevada Gaming Commission, is second only to the $20 million fine levied against Wynn Resorts in 2019 for failing to investigate sexual-misconduct allegations.
"It's no surprise the fine is that high," says Buck Wargo, a gaming lawyer and former UNLV professor who frequently discusses casino ethics. "The industry needs to prioritize self-regulation to avoid suffering significant financial penalties."
In September 2020, Wynn Resorts agreed to fork over a whopping $130 million to the feds to settle criminal allegations that it conspired with unlicensed money-transmitting businesses worldwide to transfer funds for its own benefit. As of writing, the Nevada Gaming Control Board has yet to take action against Wynn.
Meanwhile, Scott Sibella, a former Resorts World Executive, had his gaming license revoked in December 2020 after pleading guilty to federal charges for failing to report illicit gamblers playing at the MGM Grand in 2018.
Wargo vented, "The industry needs a rethink of its regulatory strategies. Pressure to increase revenue sometimes overshadows compliance and ethics."
Down Under, Australia has seen a series of money-laundering cases involving criminal gangs from mainland China gambling with Star Entertainment and Crown Resorts. In July 2023, Crown was fined $300 million by the Federal Court of Australia, while Star Entertainment was slapped with a $62 million fine in 2022 for its AML protocols. Last October, the company was fined another $10 million, and its license suspension was extended until 2025 – its Sydney casino is now operated by a court-appointed manager.
"What's happening in Australia, Vancouver, and other places are some of the worst regulatory violations in decades," Wargo added. His forthcoming book, Casino Redux: Unveiling the Global Network of Chinese Organized Crime, delves into the rise of notorious Triad leaders and their strategic maneuvers to infiltrate the casino industry in Asia, Australia, and North America.
Though the U.S. has had its fair share of flubs, these cases have been isolated, uncovered, and nowhere near the scale of what's transpiring internationally, according to Wargo. The specifics behind the Wynn case are yet to be unveiled in any Gaming Control Board discipline.
"Sometimes these cases are backed by Triads, and other times they're not," Wargo said, adding, "Casinos are easily cooperative for moving large sums of money, especially when the origins are dubious."
Wargo expressed dismay at the Australian regulators for not stripping gaming licenses over what he considers to be the most egregious regulatory violations. "The offending companies are found unsuitable to hold a license, but the licenses have never been revoked," he said, expressing the view that regulation will continue to be ineffective as long as casino companies are too big to fail.
In contrast, Wargo asserts that things are generally better in Nevada due to AML laws. However, he'd like to see changes, such as the ability to fine the offenders who commit AML violations, rather than the companies they leave behind.
The complaint against Resorts World Las Vegas, filed in August, originally amounted to a 31-page document. However, after further investigation, some claims were dropped due to Resorts World conducting sufficient due diligence on certain individuals involved in the case.
Resorts World released a statement ahead of the settlement hearing, stating they looked forward to the resolution of the matter. The case involving illegal bookmakers at Resorts World has nothing to do with the Chinese money laundering at casinos worldwide, but operators thinking it's what everybody else is doing in the industry is problematic, according to Wargo.
"If you're doing proper due diligence on your customers, you'll eventually recognize that the money is coming from illicit sources, and you need to cut them off," Wargo added, advising casino executives to remember the importance of abiding by anti-money-laundering regulations to maintain the integrity of the industry.
- In light of the gambling industry's push for increased revenue, examples of misconduct, such as flouting federal anti-money-laundering (AML) laws, are increasingly becoming common in casinos around the globe.
- In 2025, the general-news, crime-and-justice, and sports sectors may continue to report similar incidents, as the offending companies' size makes them seemingly too big to fail and regulation ineffective.
- The settlement of $10.5 million between Resorts World Las Vegas and the Nevada Gaming Commission for AML law violations is a notable fine, but it falls short compared to the $20 million fine Wynn Resorts received in 2019 for neglecting sexual-misconduct allegations.
- As authorities continue to crack down on AML violations in casinos, some examples, like the cases of Wynn Resorts and Resorts World Las Vegas, may reveal strategic maneuvers by organized crime syndicates, such as Triad leaders, to penetrate the casino industry globally.
