Rise in Casino Gambling in U.S. Seen as Potential Boon to Money Launderers

By Colby Adams

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 woefully understaffed, according to law enforcement officials and former IRS auditors. Tasked with monitoring the casino business and catching efforts to launder illicit funds through legal gaming, the IRS lacks staff and resources to regularly audit casinos, said James Dowling, a former IRS special agent and president of the Dowling Advisory Group, a Pasadena, CA consultancy. But the IRS unit charged with enforcing Bank Secrecy...