Wynn Resorts to Pay $130M in Landmark Case Involving Unlicensed Money Transfers

Wynn Resorts, a big casino company, has agreed to pay $130 million to the government. They admitted they let people use illegal money transfer services to send money to gamblers at their famous Las Vegas Strip casino.

The deal, finished on September 6, includes money the US Justice Department said was part of these illegal transactions. This is one of the biggest payments ever made by a casino for breaking the law.

Wynn Resorts Agrees to $130 Million Settlement

Wynn Resorts said this payment is not a fine but a way to settle the issue. They also clarified that this problem was not money laundering, even though the investigation lasted ten years. They shared this information with the media and the Securities and Exchange Commission (SEC).

US Attorney Tara McGrath, who worked on the case, said that this settlement shows casinos need to make sure foreign customers follow US laws. According to AP News, she mentioned that this $130 million deal is probably the largest settlement ever for a casino admitting wrongdoing. Wynn Resorts agreed that this settlement helps them move on from past issues.

The investigation started in 2014 and found that some former Wynn Resorts workers used illegal money transfer services to move money between the casino and people from other countries. One method, called "Flying Money," involved using foreign bank accounts to send money to the casino for a customer who couldn't get cash in the US.

Another case involved a person who placed bets at Wynn Las Vegas for someone who couldn't gamble because of rules. One agent at the casino made over 200 money transfers totaling nearly $18 million for more than 50 international customers, as per Fox Business.

Wynn Resorts Cuts Ties with Involved Parties

In response, Wynn Resorts has cut ties with the people and businesses involved and has made changes to prevent this from happening again. They said the settlement helps them focus on the future and doesn't mean they are admitting to money laundering.

The SEC filing showed the investigation had been going on for six years and involved events from over ten years ago. The settlement does not include Steve Wynn, the former CEO, who has faced legal troubles since 2018 due to claims of sexual misconduct. Steve Wynn has sold his shares and left the company but denies the allegations.

Wynn Resorts has had other fines in the past. In 2019, they paid $20 million for not looking into the allegations against Steve Wynn. Massachusetts regulators also fined them $35.5 million for not sharing these allegations when they were getting a license for the Encore Boston Harbor resort.

The Justice Department's investigation led to charges against 15 people, with penalties over $7.5 million for money laundering and illegal money transfers. Wynn Resorts stressed that they were not charged with money laundering themselves.