- Wynn Resorts had been accused by the Justice Department of allowing gamblers to use unauthorized money transfer systems to receive funds.
- This was done by foreign gamblers to bypass United States laws for transferring money.
- Wynn has agreed to pay $130 million to avoid going to court, which is the largest forfeiture amount ever for a casino.
Wynn Resorts intended to have an exciting 2024. So far, Wynn has applied to build a casino and resort in New York City. Wynn is also breaking ground on a new hotel in the United Arab Emirates, which is due to be open in 2027.
However, Wynn has found itself in hot water recently, this time with the federal government. The Las Vegas Review-Journal reports that Wynn is forfeiting $130 million to avoid going to court over allowing foreign gamblers to transfer money illegally to circumvent federal transferring laws.
$130 Million is The Biggest Forfeiture in History for a Casino
Wynn Resorts has acknowledged their role in a complex scheme that allowed gamblers from outside the United States to transfer money illegally. They had an association with agents who enticed foreign players to play at the Las Vegas resort.
Those agents would then help the players re-route their money through third-party companies and bank accounts in Latin America, among other players. Then, the money would make its way to a Wynn account and withdrawn by the players. This would allow them to avoid reporting the financial transfer. This is also, of course, against federal law.
The report states one instance of this, via an agent named Juan Carlos Palermo. Prosecutors revealed that he conducted over 200 transfers alone, for over 50 foreign gamblers. Palermo transferred almost $18 million in funds.
But Wynn is avoiding going to court over these allegations as they have agreed to forfeit $130 million, in exchange for no prosecution. This agreement with the U.S. Department of Justice is the biggest forfeiture in history for a casino, based on “admissions of wrongdoing”. U.S. Attorney Tara McGrath said:
“Casinos, like all businesses, will be held to account when they allow customers to evade U.S. laws for the sake of profit. Federal oversight seeks to prevent illegal funds from tainting legitimate businesses, ensuring that casinos offer a clean, thriving, and safe entertainment option.”
Investigation Went Back as Far As 2014, When Steve Wynn was in Charge
The LVRJ report also states that this investigation of Wynn allowing illegal money transfers goes back as far as 2014. In 2018, Wynn underwent a major transformation as former CEO Steve Wynn was ousted from the company for allegations of sexual harassment. The report also reveals that another lawsuit was settled involving hundreds of Wynn shareholders against Steve Wynn. The company made a statement, saying:
“Wynn Resorts is committed to acting with the highest integrity and in full compliance with all laws and regulations governing our industry. The improper actions that are the subject of the settlement were undertaken by individuals with whom we severed ties years ago. The actions of these individuals, for which Wynn has accepted responsibility, date back many years and violated Wynn’s compliance policies and procedures. We are pleased that the company has now resolved this long-standing legal matter.”
Wynn Resorts, which has also moved into online casinos and sportsbooks, is doing whatever it can to distanced itself from Steve Wynn, so they can hopefully avoid situations like this in the future.
