One of the largest sportsbooks in Nevada knowingly aided a massive illegal gambling operation for more than a year and even took steps to weaken its anti-money laundering rules after being warned of its compliance shortcomings by IRS examiners, U.S. officials said Monday. Cantor Gaming, a third-party operator which runs books for eight Las Vegas casinos, including the Venetian, the Palazzo, the Cosmopolitan and the Tropicana, regularly and willfully failed to implement effective anti-money laundering (AML) controls, monitor transactions and report suspicious activity "from the day it opened" in March 2009 through September 2015, the U.S. Treasury Department's Financial Crimes...
The U.S. gaming sector's string of recent compliance penalties have prompted many casinos to rethink how they implement anti-money laundering controls, according to Kim McCabe, founder of Henderson, NV-based consultancy KMC, LLC.
The expansion of the casino industry to new states throughout the U.S. increases the likelihood that gaming will grow as a vehicle for money laundering, particularly since the federal agency charged with its oversight is understaffed, according to law enforcement officials and former IRS auditors.
The Mirage, a large Las Vegas casino, failed to file possibly thousands of Currency Transaction Reports that were apparently filled out but never submitted to the U.S. Financial Crimes Enforcement Network.