Wynn Las Vegas Faces AML Penalty Amid Shifting Regulatory Landscape
In a striking development for the Las Vegas Strip, Wynn Las Vegas has become the third casino this year to incur significant penalties for anti-money laundering (AML) violations. The Nevada Gaming Control Board (NGCB) announced on Thursday that Wynn will pay a hefty sum of $5.5 million, following issues with unlicensed money transfers that have raised alarms in the gaming industry.
The NGCB’s six-count complaint stems from a federal non-prosecution agreement made last September, during which Wynn forfeited over $130 million—an unprecedented figure for a casino admitting to wrongdoing, according to the U.S. Attorney’s Office for the Southern District of California.
Earlier this year, Resorts World Las Vegas was fined $10.5 million for similar AML infractions related to illegal bookmaking activities. Subsequently, MGM Resorts was penalized $8.5 million, forming a troubling pattern among major Las Vegas operators. While Wynn’s fine is independent of these cases, it underscores a growing regulatory concern over compliance within America’s gaming capital.
The NGCB will finalize its decision during a meeting on May 22, and historical precedent suggests that these fines are likely to be approved without additional conditions. In a statement, Wynn expressed satisfaction in resolving the matter, emphasizing their commitment to integrity and adherence to all regulatory laws.
The complaint highlights a spectrum of serious AML violations, some dating back to 2014, where former employees facilitated improper money transfers for patrons, bypassing established compliance protocols. These actions reportedly involved routing funds through third parties to obscure their origins, ultimately enabling international gamblers to place bets with little oversight.
One particularly alarming aspect of the findings involves two distinct money transfer schemes dubbed “human heads” and “flying money.” The former refers to individuals serving as proxy bettors for those unable to pass standard AML checks, while the latter involves unregistered money transmitters delivering large sums of cash to patrons, who would then reimburse these individuals, often minus a fee.
Interestingly, Wynn’s situation is reminiscent of challenges faced by Australian casinos like Crown Resorts and Star Entertainment, which have also been scrutinized for facilitating illegal money transfers, often disguising them through elaborate schemes.
While the Wynn penalty is significant, it raises questions about the broader regulatory environment in Las Vegas. Although the gaming industry has seen a resurgence post-pandemic, federal authorities are actively stepping into the fray. The ongoing scrutiny into AML practices for prominent operators can be viewed as a sign of deeper systemic issues rather than isolated incidents.
Critics argue that the level of fines imposed has been insufficient in addressing these violations. Wynn previously made headlines in 2019 when it faced a $20 million penalty for neglecting sexual harassment claims. Intriguingly, both cases were not initially uncovered by state regulators but came to light through external reporting.
The relationship between regulatory bodies and gaming operators remains contentious, particularly as some officials have been accused of being overly lenient or even praising operators despite substantial fines being levied. This questioning of regulatory rigor is amplified by ongoing leadership changes within the NGCB, including the upcoming departure of Chairman Kirk Hendrick and the transition to Mike Dreitzer, the fifth chair since early 2019.
As the landscape continues to evolve, the challenges facing casinos like Wynn will likely persist, emphasizing the need for robust compliance measures and transparency in operations to avoid further regulatory fallout.