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Summary:
- Las Vegas casinos say stricter AML rules could reduce gaming revenue.
- Strip operators were fined more than $32 million in a recent money laundering case.
- Casinos are increasing customer fund verification and compliance monitoring.
Compliance executives from some of the biggest casinos on the Las Vegas Strip say the industry is entering a far stricter era of financial oversight following a series of major money laundering investigations that resulted in tens of millions of dollars in penalties.
New AML Rules Changing Casino Operations
Gathered at a gaming conference hosted by the Nevada Society of Certified Public Accountants at Circa Las Vegas, compliance leaders from MGM Resorts, Wynn Resorts and Fontainebleau Las Vegas carried out discussions on the way renewed anti-money laundering regulations are reshaping casino operations.
The tougher rules were approved earlier this year by the Nevada Gaming Control Board and Nevada Gaming Commission after several major Strip properties were penalized over failures tied to illegal bookmakers and unregistered money transfers. Nevada regulator George Assad wants to push the regulations further in the future.
Over the past year, Caesars Entertainment, MGM Resorts, Resorts World Las Vegas and Wynn Resorts were collectively fined more than $32 million in anti-money laundering-related cases.
Many of the investigations centered around illegal bookmakers Wayne Nix and Matthew Bowyer, both of whom have since been placed in Nevada’s Black Book, effectively banning them from casinos statewide.
Wynn Resorts compliance officer Eric Akiyama said the new regulatory environment is already forcing casinos to make difficult decisions.
A couple of weeks ago, we banned a $26 million loser. It’s not easy to do and it raised a lot of eyebrows. In the past, it would have been difficult. But in this new environment, there were no questions asked.
“MGM Resorts: There’s Going to Be an Impact on Gaming Revenue”
One of the biggest upcoming changes will restrict the use of business entities to fund casino deposits or repay gambling credit. MGM Resorts compliance chief Stephen Martino warned the rule could impact gaming revenue once it takes effect later this year.
There’s going to be an impact on gaming revenue
Martino said, adding that casinos are now under pressure to verify customer wealth and funding sources more aggressively than ever before.
MGM alone now employs around 100 workers focused on compliance duties ranging from suspicious activity reporting to customer background checks and audits.
Martino acknowledged that the company had strengthened internal oversight after its own investigations involving illegal bookmakers led to millions in state and federal penalties. He said MGM now files more suspicious activity reports and increasingly relies on advanced software and artificial intelligence tools to monitor player activity.
We continue to work on it to make sure we have the appropriate culture of compliance
Industry officials also warned that federal whistleblower protections tied to the AML Act of 2020 could further increase pressure on casinos, as employees can receive a percentage of fines exceeding $1 million if they report misconduct to outside authorities.
