Wynn Resorts has reached an agreement with the U.S. Department of Justice to forfeit $130 million, concluding a lengthy investigation into unlawful foreign betting practices. The settlement, announced on Friday, addresses criminal allegations that Wynn Las Vegas, the company’s flagship property, collaborated with unlicensed money transmitting entities worldwide to facilitate fund transfers for the casino’s financial gain.
The publicly traded hospitality giant clarified that the forfeiture is not a fine, but rather represents funds identified by the DOJ as being involved in the transactions under scrutiny. Wynn Resorts emphasized that the findings of the decade-long investigation did not amount to money laundering charges.
Federal regulators revealed that the probe into Wynn Resorts’ activities began around 2014. The company stated that it has since severed ties with all individuals and businesses implicated in what authorities described as “convoluted transactions” originating from overseas.
The Justice Department outlined several methods employed to move money between Wynn Las Vegas and individuals in China and other countries. One such technique, dubbed “Flying Money,” involved an unlicensed money agent utilizing multiple foreign bank accounts to transfer funds to the casino on behalf of patrons who were otherwise unable to access cash in the United States.
Another method centered on the use of a “Human Head,” where one person would gamble at the casino under the direction of another individual who was either unwilling or unable to place bets directly due to anti-money laundering regulations and other legal constraints.
In one instance highlighted by the DOJ, an independent agent working for the casino conducted over 200 money transfers totaling nearly $18 million through bank accounts controlled by Wynn Las Vegas or affiliated entities. These transfers were made on behalf of more than 50 foreign casino patrons.
Wynn Resorts characterized the agreement as the final step in a six-year effort to address legacy issues and refocus on its future operations. The company did not mention former CEO Steve Wynn in its statement regarding the settlement. However, since 2018, the parent company has been entangled in legal matters surrounding his departure following sexual misconduct allegations, which Wynn, now 82 and residing in Florida, has consistently denied.
As part of the broader investigation, the DOJ reported that 15 individuals had previously admitted to money laundering, unlicensed money transmission, or other related crimes, resulting in criminal penalties exceeding $7.5 million.
In its statement to the media, Wynn Resorts emphasized that the settlement resolves long-standing legal issues related to events that occurred “years ago.” The company acknowledged that several former employees had facilitated the use of unlicensed money transmitting businesses, violating both internal policies and the law. Wynn Resorts accepted responsibility for these actions while maintaining that the agreed-upon Statement of Facts included in the Non-Prosecution Agreement does not mention money laundering.
The resolution of this matter marks a significant milestone for Wynn Resorts as it seeks to move past regulatory challenges and focus on its core hospitality business. The substantial forfeiture underscores the seriousness with which federal authorities view compliance in the gaming industry, particularly concerning international financial transactions and anti-money laundering protocols.