Wynn Resorts agrees to $130 million forfeiture to settle US DOJ probe?

Jenny Ortiz September 9, 2024

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Wynn Resorts agrees to $130 million forfeiture to settle US DOJ probe?

Wynn Resorts has reached a settlement agreement with the U.S. Department of Justice (DOJ) to forfeit $130 million (€117.4 million). This decision resolves a lengthy investigation into unlicenced foreign betting practices at the company’s flagship casino, Wynn Las Vegas. ?

The case, which spanned over a decade, examined the involvement of former employees and third-party agents in facilitating illegal transactions between foreign customers and the casino.

Investigative findings

The DOJ’s investigation revealed multiple illegal methods used to transfer money between international patrons and Wynn Las Vegas. One method, termed “Flying Money,” involved foreign agents using multiple overseas bank accounts to transfer funds to the casino for patrons who could not access money in the United States. Another practice, referred to as “Human Head” gambling, saw individuals gambling on behalf of patrons restricted from doing so by U.S. anti-money laundering laws.

Legal and financial implications

As part of the non-prosecution agreement (NPA), Wynn Resorts agreed to forfeit the $130 million (€117.4 million), representing the funds involved in the transactions in question. This forfeiture is the largest of its kind by a Nevada-based gaming company.

The agreement does not amount to a fine or an admission of money laundering but marks the resolution of regulatory inquiries dating back to 2014. Furthermore, 15 individuals had already admitted to offences such as money laundering and unlicenced money transmission, paying penalties exceeding $7.5 million (€6.8 million).

Corporate response

Wynn Resorts has stated that it severed ties with all individuals and businesses involved in these activities. The company clarified that the settlement did not amount to criminal charges, and the forfeited funds were associated with historical transactions. Wynn also committed to enhancing its compliance programme to prevent similar incidents in the future, signalling a focus on remediation and corporate responsibility.?

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