Wynn Resorts Ltd. is set to pay $130 million in a settlement with federal authorities after allowing unlicensed money transfer businesses to funnel funds to gamblers at its Las Vegas Strip property.
The settlement follows a decade-long investigation by the U.S. Justice Department into what they described as “convoluted transactions” involving foreign customers.
The casino giant acknowledged its role in these transfers but clarified in a statement that the payment is a forfeiture of the funds involved, not a fine.
The company also emphasized that the findings do not amount to money laundering.
The Justice Department highlighted several methods used to bypass U.S. financial regulations, such as a scheme called “Flying Money,” where unlicensed agents transferred funds through foreign bank accounts for patrons unable to access U.S. cash.
Another involved a practice where individuals known as “Human Heads” gambled on behalf of others, circumventing anti-money laundering laws.
U.S. Attorney Tara McGrath in San Diego noted that the $130 million is believed to be the largest forfeiture by a casino linked to admitted criminal wrongdoing.
McGrath stressed that the settlement reinforces the accountability of casinos that allow foreign customers to evade U.S. laws.
Wynn Resorts stated that it has severed ties with all individuals involved in the transactions and expressed its commitment to resolving these “legacy issues.”
The company noted that the settlement does not refer to money laundering and marks the conclusion of an investigation that began in 2014.
Absent from the settlement discussion is Steve Wynn, the company’s founder and former CEO, who resigned in 2018 after sexual misconduct allegations surfaced.
Although Wynn has denied the allegations and distanced himself from the company, the scandal has continued to impact Wynn Resorts’ business operations.
In the years since, Wynn Resorts has faced various penalties related to misconduct allegations, including a $20 million fine from the Nevada Gaming Commission in 2019.
The company also settled shareholder lawsuits for a total of $41 million.
Wynn Resorts views the $130 million settlement as the final step in moving beyond past issues and focusing on its future.
However, the Justice Department’s message remains clear: casinos that enable illegal financial dealings will face significant consequences.
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