In a major development, casino company Wynn Resorts Ltd. has agreed to pay $130 million to federal authorities and accept responsibility for allowing unlicensed money transfer businesses to funnel funds to gamblers at its Las Vegas property. The settlement, reached on Friday, was described as a non-prosecution agreement with the U.S. Justice Department, with the company admitting to the transactions in question but denying any money laundering activity. U.S. Attorney Tara McGrath in San Diego hailed the settlement as a significant step towards holding casinos accountable for facilitating illegal activities by foreign customers. The $130 million forfeiture is said to be the largest ever by a casino based on admissions of criminal wrongdoing.
Wynn Resorts emphasized that it had cut ties with all individuals and businesses involved in the illicit transactions that were conducted overseas. The company acknowledged that former employees had facilitated the use of unlicensed money transmitting businesses, a breach of both internal policies and the law. In a statement to the Associated Press, the company expressed regret and took full responsibility for the actions of its employees. The settlement with the Justice Department marks the culmination of a six-year effort by Wynn Resorts to address and resolve the legacy issues related to the case.
The Justice Department outlined various methods used to transfer money between Wynn Las Vegas and individuals in China and other countries. One such method, known as “Flying Money,” involved an unlicensed money agent using multiple foreign bank accounts to transfer funds to the casino for use by a patron unable to access cash in the U.S. Another method involved a person referred to as “Human Head” gambling at the casino on behalf of someone else who could not place bets themselves due to legal restrictions. The government stated that an independent agent conducted over 200 money transfers totaling nearly $18 million through bank accounts controlled by Wynn Las Vegas for more than 50 foreign patrons.
While the settlement did not mention former CEO Steve Wynn, it comes amidst legal controversies surrounding his departure from the company in 2018 following allegations of sexual misconduct. Wynn, who has since distanced himself from the company and denied any wrongdoing, resigned from his positions and divested his shares. Last year, he reached an agreement with Nevada regulators to sever his ties with the gambling industry. Further fines were imposed on Wynn Resorts by regulators in Nevada and Massachusetts for failing to disclose the misconduct allegations against Wynn when applying for licenses. Shareholder lawsuits against the company were also settled, with Wynn contributing $20 million in damages.
As part of its investigation, the Justice Department disclosed that 15 individuals had previously admitted to money laundering, unlicensed money transmission, or other crimes, resulting in criminal penalties exceeding $7.5 million. Wynn Resorts clarified that the non-prosecution agreement did not specifically mention money laundering. The company viewed the settlement as a final step in resolving the issues surrounding the case and pledged to focus on its future operations. Despite the legal challenges and controversies, Wynn Resorts remains a prominent player in the casino industry, with properties in Las Vegas, Massachusetts, Mississippi, and Macao.
