Wynn Resorts Pays $5.5M Fine for AML Failures, Drops New York Casino Bid
Wynn Resorts has reached a significant settlement of $5.5 million with the Nevada Gaming Control Board (NGCB) related to serious anti-money laundering (AML) violations. In conjunction with this settlement, the company has also opted to withdraw its application to construct a new casino in New York.
Settlement Details and Implications
This settlement pertains to Wynn’s leveraging of unlicensed money transmission services to entice foreign gamblers. The investigations uncovered practices such as proxy betting and “flying money” transfers, raising significant regulatory concerns.
In a striking move, last year Wynn Resorts forfeited a record $130 million to the U.S. Department of Justice (DOJ) under a non-prosecution agreement—marking it as the largest forfeiture ever imposed on a U.S. casino. Additionally, the company faced the NGCB’s highest financial penalty to date, amounting to $20 million due to failures related to founder Steve Wynn’s sexual misconduct allegations; the fine was imposed for the company’s inadequate investigation into the claims.
Understanding Wynn Resorts’ Violations
Wynn Resorts established a convoluted network aimed at recruiting foreign players through proxy bettors to circumvent regulatory scrutiny. This involved collaborations with third-party agents, which enabled illicit fund transfers through an intricate web of accounts. By allowing individuals to utilize proxy bettors, Wynn sought to evade stringent AML checks.
Furthermore, the resort facilitated transactions through unauthorized money processing services, compounding its regulatory issues. In response to these findings, Wynn Las Vegas has terminated the employment of involved personnel and committed to enhancing its AML compliance protocols, including comprehensive employee training.
A company spokesperson expressed, “We are pleased to have resolved this matter with the Nevada Gaming Control Board. Wynn Resorts is dedicated to maintaining the highest standards of integrity and full compliance with industry regulations. We acknowledge our missteps and are relieved to see this issue approaching a final resolution.”
Withdrawal from New York Casino Bid
In related news, Wynn Resorts has formally withdrawn its bid to develop a casino along the Hudson River in New York. In a statement, the company indicated, “After careful consideration, we have decided not to submit an application for a gaming license in New York City.”
This decision follows a reevaluation prompted by the recent rezoning process, which highlighted more beneficial uses for corporate capital. The statement continued, “Investing in our current and future developments and stock buybacks presents better opportunities than entering an environment where persistent opposition is anticipated, despite our readiness to create approximately 5,000 jobs for New Yorkers.”
Although the City Planning Commission approved the project earlier this year, local community objections culminated in a rejection of the proposal in January.
Conclusion
Wynn Resorts’ recent actions reflect both the challenges and responsibilities inherent in the modern gambling industry. The high-profile nature of these settlements underscores the imperative for compliance with evolving regulations, particularly concerning anti-money laundering practices. As the industry continues to navigate a complex regulatory landscape, ensuring transparent and ethical operations will be vital for maintaining trust and integrity within the sector.
Author Bio
Adam Roarty is a seasoned writer specializing in the gambling industry, with over five years of experience as a content writer and editor for leading publications such as Oddschecker, CoinTelegraph, and Gambling Industry News. His expertise encompasses sports betting and online gambling, providing valuable insights into the industry’s latest trends and developments.
