In a landmark decision that has sent shockwaves through the gambling industry, the Department of Justice (DOJ) has announced a staggering $130 million settlement with Wynn Las Vegas over allegations of money laundering and failure to properly report suspicious activities.
The settlement, which represents the largest fine ever imposed on a US casino, comes after a lengthy investigation by the DOJ into Wynn’s compliance with anti-money laundering regulations. According to the DOJ, Wynn failed to adequately monitor and report suspicious activities at its flagship Las Vegas property, leading to a pattern of repeated violations over the course of several years.
In a statement, US Attorney General Jason Dunn emphasized the importance of holding casinos accountable for their role in preventing financial crimes. “Casinos have a responsibility to ensure that their operations are not exploited by criminals seeking to launder illicit funds or engage in other illegal activities,” Dunn said. “We will not hesitate to take action against those who fail to uphold their obligations under the law.”
The settlement is a major blow to Wynn Resorts, which has been struggling in recent years to overcome the fallout from a sexual harassment scandal involving its founder and former CEO, Steve Wynn. The company has seen its stock price plummet and its reputation tarnished as a result of the scandal, which led to a wave of lawsuits and regulatory investigations.
In a press release, Wynn Resorts sought to downplay the significance of the settlement, arguing that it had taken steps to strengthen its anti-money laundering controls in recent years. “While we regret the past shortcomings in our compliance efforts, we are confident that the measures we have implemented will prevent such issues from recurring in the future,” the company said.
Despite Wynn’s assurances, observers say that the settlement will likely have a lasting impact on the company’s bottom line and reputation. The $130 million fine represents a significant financial hit for Wynn, which has already been struggling to recover from the fallout of the Steve Wynn scandal.
Industry experts say that the settlement sends a clear message to other casinos, reminding them of the importance of rigorous compliance with anti-money laundering regulations. “This is a wake-up call for the industry,” said one analyst. “Casinos need to be vigilant in monitoring their operations and reporting any suspicious activities to the authorities.”
The DOJ’s settlement with Wynn Las Vegas is just the latest in a series of high-profile actions taken by federal regulators against casinos in recent years. In 2015, Caesars Entertainment was hit with a record $20 million fine for similar violations, while last year, MGM Resorts was forced to pay $100 million to settle allegations of money laundering at its properties.
With the gambling industry facing increased scrutiny from regulators, experts say that casinos will need to step up their compliance efforts in order to avoid facing similar penalties in the future. “The stakes are higher than ever for casinos that fail to take their anti-money laundering obligations seriously,” said one compliance expert. “The DOJ’s settlement with Wynn should serve as a wake-up call for the entire industry.”