In a settlement that has sent ripples through the casino industry, Wynn Resorts Ltd. has agreed to pay $130 million to the U.S. Justice Department after admitting to allowing unlicensed money transfer businesses to funnel funds to gamblers at its Las Vegas Strip property. This non-prosecution agreement marks one of the largest financial penalties in the casino industry, shedding light on practices that have flown under the radar for years.
The settlement, which Wynn Resorts announced in statements to both the media and the Securities and Exchange Commission, does not label the forfeiture as a fine, nor does it officially claim the company engaged in money laundering. Rather, it addresses funds tied to transactions conducted by unlicensed money transfer businesses, raising important questions about accountability and oversight in one of the world’s largest gaming hubs.
The Justice Department revealed that the methods used to transfer money were far from straightforward. One tactic, known as “Flying Money,” involved a complex network of foreign bank accounts managed by unlicensed agents, who moved money on behalf of gamblers unable to access cash in the U.S. Another practice involved a so-called “Human Head,” where one person gambled at Wynn Las Vegas on behalf of another individual who, due to anti-money laundering laws, could not legally place bets.
For Wynn Resorts, this settlement isn’t just about the financial hit. The company has taken significant steps to sever all ties with those involved in these convoluted transactions. Several former employees were implicated in the scandal, having facilitated these unlicensed money transfers in direct violation of both company policies and federal law. Wynn Resorts publicly stated it takes full responsibility for the misconduct.
U.S. Attorney Tara McGrath emphasized the gravity of the settlement, stating that this case shows casinos must be held accountable when foreign customers try to evade U.S. laws. The $130 million forfeiture is believed to be the largest ever by a casino, based on admissions of criminal wrongdoing.
While Wynn Resorts seeks to move forward from this decade-long investigation, the case underscores the broader risks that come with international gaming and unregulated financial transactions. As global gambling continues to grow, this case could set a precedent for how casinos, regulators, and authorities handle similar situations in the future.
For the gaming industry, this situation serves as a stark reminder of the importance of strict adherence to money transfer regulations. While Wynn Resorts has taken steps to rectify its involvement, other casinos may be examining their own practices to ensure compliance with U.S. law and avoid similar consequences. The stakes, both legally and financially, couldn’t be higher.
