In a significant legal development, Wynn Resorts Ltd., the renowned casino operator, has consented to a staggering payment of $130 million to federal authorities. This resolution comes in light of serious allegations regarding the company’s facilitation of illegal money transfers to gamblers at its flagship establishment on the Las Vegas Strip.
This agreement, finalized on a recent Friday, stems from a routine investigation conducted by the U.S. Justice Department that scrutinized the operations at Wynn Las Vegas. The inquiry unveiled that the casino allowed unlicensed money transfer services from various parts of the globe to channel funds to its patrons. While the settlement represents a hefty sum, Wynn Resorts emphasized that this forfeiture does not equate to a fine and clarified that the lengthy investigation, which has persisted for nearly a decade, did not uncover evidence of money laundering.
U.S. Attorney Tara McGrath voiced the importance of the settlement, asserting that it signifies that casinos must be held accountable if they permit foreign customers to bypass U.S. regulations. Notably, this appears to be the largest forfeiture by a casino based on admissions of criminal activity, according to the Justice Department.
Wynn Resorts publicly acknowledged its responsibility for the actions of its former employees, who allegedly orchestrated the unauthorized use of money transmitting services in violation of both the law and the company’s internal policies. The casino also stated that all relationships with individuals and entities involved in these complex transactions have been severed.
The Justice Department’s findings described various ill-advised methods employed to manage the money transfers between Wynn Las Vegas and individuals in China and other nations. One particularly intriguing tactic, dubbed “Flying Money,” involved an unlicensed agent utilizing numerous foreign bank accounts to transfer money to the casino for a customer who otherwise could not access American cash. Another method utilized by the casino involved a person known as a “Human Head,” who would gamble at the casino on behalf of someone else unable to place bets due to existing laws.
Over the course of the investigation, more than 15 individuals have already admitted to money laundering and unlicensed money transmission, incurring penalties that surpass $7.5 million. Wynn Resorts has reiterated that its settlement with the government does not reference money laundering, thus distinguishing it from those earlier admissions of guilt by others.
This agreement marks the culmination of a six-year initiative by Wynn Resorts to address historical issues and refocus on the future. The investigation has its roots in a broader context of scrutiny faced by the casino company, especially following allegations of sexual misconduct against its former CEO, Steve Wynn. Following those accusations, which were first reported by the Wall Street Journal, he resigned and has consistently denied any wrongdoing.
Now residing in Florida, Steve Wynn cut all ties with the company he once led. He has previously faced fines from gambling regulators in both Nevada and Massachusetts related to his exit from the casino industry amid growing scrutiny.
With the settlement, Wynn Resorts aims to close a tumultuous chapter in its history, putting behind it past controversies to enhance its reputation and focus on future endeavors in the competitive and ever-evolving world of gaming and hospitality. As the casino industry continually adapts to new regulations and changing customer dynamics, this settlement serves as a pivotal reminder of the need for adherence to the law, ensuring that the interests of patrons and the integrity of the gaming industry remain safeguarded.
With the situation ongoing, observers within the financial and gaming communities will be keenly watching how Wynn Resorts navigates its future in the wake of this landmark agreement, balancing regulatory compliance with its ambitions in an increasingly complex market.