Pressure on Casino Executives Linked to Money Laundering and Substantial Penalties: Insights from a Gaming Lawyer and Author
Rewritten Article:
Buck Wargo's Take: The Serious Side of Las Vegas Casinos and Global Money Laundering
Casinos - the glamour, the glitz, the cool, crisp air filled with tantalizing whispers of fortune. But, beneath the surface of this dazzling world, seedy undercurrents, criminal activities, and money laundering schemes lurk. Buck Wargo, our esteemed gaming lawyer and former UNLV professor, sheds light on the gritty reality behind these glitzy gambling dens.
Resorts World Las Vegas, the epitome of Sin City's sparkle, stands accused of breaching the United States' federal anti-money-laundering laws, making heads turn with its staggering fine of $10.5 million. This punishment, part of a settlement slated for review by the Nevada Gaming Commission, is only second to the $20 million Wynn Resorts paid in 2019 for their failure to investigate sexual-misconduct allegations.
However, Professor Wargo views the fines as a stern warning to the industry. "For several years, the Gaming Control Board has been imposing substantial fines against casino operators," he explains, citing the World Game Protection Conference in Las Vegas, where he recently enlightened his audience on casino ethics. "This clearly signals a need for self-regulation and ethics, or face substantial monetary penalties."
Intriguingly, Wynn Resorts agreed to settle with the federal government for $130 million in September, following charges of conspiring with unlicensed money-transmitting businesses worldwide to funnel funds into their own coffers. The Gaming Control Board has yet to take action against Wynn, perhaps anticipating the results of this settlement.
Scott Sibella, former Resorts World Las Vegas president, and COO, lost his gaming license in December after pleading guilty to federal charges of covering-up illegal gambling at MGM Grand in 2018.
Wargo laments the appalling level of ethics in the global casino industry, especially in Australia, where money-laundering cases have plagued the last 18 months. Star Entertainment and Crown Resorts have been hit with large fines for their transgressions, with Crown being penalized $300 million in July 2023 and Star Entertainment fined $62 million for inadequate anti-money laundering protocols in 2022.
Wargo's forthcoming book, Casino Redux: Exposing the Global Network of Chinese Organized Crime, delves into the stories of notorious Triad leaders and their machinations to seize control of the lucrative global casino industry in Asia, Australia, and North America. Wargo shares his dismay at the lack of ethics he discovered, describing the Australian cases as "institutional" rather than individual missteps.
While the U.S. has experienced blemishes, these incidents are isolated, exposed, and nowhere near the scale of the global upheaval, according to Wargo. However, he cautions that the facts behind the Wynn case are still unfolding.
Wargo claims that some of the worldwide incidents are connected to the Triads, while others are not. Nevertheless, he advises that casinos are often complicit in the criminal activities, willingly playing the role of money mules for those seeking to transfer funds from illicit sources.
Wargo expresses disappointment with Australian regulators, who have fallen short in reprimanding offending entities. "The offending companies are deemed unsuitable to hold licenses, but the licenses have yet to be revoked," Wargo laments. "I find it disconcerting that casino companies can be too big to fail, effectively invalidating one of the major deterrents to compliance."
As for Nevada, Wargo sees some improvement since the implementation of Anti-Money Laundering (AML) laws. However, he suggests that Nevada needs to update its statutory and regulatory authority to levy fines upon the actual violators instead of the entities they left behind.
The Resorts World case, involving illegal bookmakers, stands distinct from the global money laundering saga, but Wargo underscores the potential danger of trading in illicit activities behind the veil of industry norms.
"It's disheartening to see casinos adopt the belief that everyone else is doing it, and it becomes acceptable," Wargo states. "However, when you're doing proper due diligence on your customers, you eventually recognize the money is originating from illicit sources, and you have to sever ties."
Fortunately, the Federal AML regulations that Wargo credits for casinos in the U.S. ceasing their acceptance of bags of cash have been successful in bolstering the cleanliness of the American casino industry. Yet, Wargo is concerned about the laxity he finds in regions like Macau, Laos, Cambodia, and the Philippines.
Wargo concludes, "Comparatively, things are better in Nevada than before the implementation of AML laws, but the industry must continually strive for improvement."
In the end, Wargo's insights remind us that the glittering facade of casinos conceals a multifaceted world filled with temptations, tension, and the ever-present threat of criminal activity.
- Buck Wargo's forthcoming book, Casino Redux, delves into the machinations of notorious Triad leaders seeking to control the global casino industry.
- For several years, the Gaming Control Board has been imposing substantial fines against casino operators, such as Resorts World Las Vegas, for their role in money laundering schemes.
- In 2025, Star Entertainment was fined $62 million for inadequate anti-money laundering protocols, while in 2023, Crown Resorts faced a $300 million penalty for similar transgressions.
- The settlement between Wynn Resorts and the federal government for conspiring with unlicensed money-transmitting businesses worldwide involved a $130 million fee in September 2020.
- The Nevada Gaming Commission is set to review a settlement that requires Resorts World Las Vegas to pay a $10.5 million fine for breaching federal anti-money-laundering laws.
- Sports-betting, a growing aspect of the casino industry, can also attract crime-and-justice issues, making it necessary for proper ethics and regulations to maintain a healthy, clean casino-culture.
