Wynn Resorts to Pay $130 Million Over Unlicensed Transfers

LAS VEGAS (AP) — Wynn Resorts Ltd. has reached a $130 million settlement with the U.S. Justice Department after admitting that it allowed unlicensed money transfer businesses to move funds for gamblers at its Wynn Las Vegas resort. The company agreed to the substantial forfeiture on Friday, marking the conclusion of a decade-long investigation into illicit transactions at its flagship property on the Las Vegas Strip.

While Wynn Resorts acknowledged its involvement in what the Justice Department described as “convoluted” international financial transfers, it emphasized that the settlement does not amount to a fine, nor did the findings rise to the level of money laundering. In its statements to both the media and the U.S. Securities and Exchange Commission, the casino giant framed the settlement as part of a broader effort to resolve long-standing legal issues.

According to U.S. Attorney Tara McGrath in San Diego, the settlement is unprecedented in scale, representing the largest forfeiture by a casino company for criminal wrongdoing. “This case demonstrates that casinos cannot turn a blind eye when foreign customers seek to evade U.S. laws,” McGrath said in a statement. Wynn Resorts has severed ties with all individuals and entities involved in the transactions, many of whom operated outside U.S. regulatory frameworks.

The investigation, which began in 2014, revealed that several former employees had facilitated unlicensed money transfers for foreign gamblers, enabling high-net-worth patrons—especially from China—to move funds into the U.S. Wynn Resorts admitted that these transactions violated its internal policies and federal law, but the company has since overhauled its compliance systems and corporate governance.

 

Methods of Unlicensed Transfers

As part of its settlement, the Justice Department outlined several tactics used by patrons to move funds into the Wynn Las Vegas casino without triggering regulatory scrutiny. One of the methods, dubbed “Flying Money,” involved using multiple foreign bank accounts to funnel cash into the U.S. through an unlicensed money agent. This method provided a workaround for patrons who were unable to access funds domestically due to restrictions imposed by anti-money laundering regulations.

Another notable technique involved an intermediary known as a “Human Head,” who would gamble at the casino on behalf of another individual who could not place bets themselves, often due to legal restrictions or the risk of drawing regulatory attention. The use of such proxies allowed patrons to skirt U.S. financial regulations, especially those governing large international transactions.

The Justice Department identified one individual who acted as an independent agent for Wynn Las Vegas, conducting over 200 financial transactions worth nearly $18 million for more than 50 foreign patrons. These transfers were funneled through bank accounts controlled by Wynn Resorts or related entities. Despite the scale of these operations, Wynn maintained that no money laundering occurred, an assertion supported by the terms of the settlement.

 

Legacy Issues: Wynn Resorts Seeks to Move Beyond Scandal

Wynn Resorts framed the $130 million settlement as a critical step in closing a chapter on long-standing legal and reputational challenges that have plagued the company. In a statement, Wynn Resorts referred to the agreement as the “final step in a six-year effort to put legacy issues fully behind us and focus on our future.” The company, now under new leadership, emphasized that it had severed all business relationships tied to the unlicensed transfers and had implemented stricter internal controls to prevent similar incidents.

The settlement is only the latest in a series of legal challenges Wynn Resorts has faced since the departure of its founder and former CEO, Steve Wynn, in 2018. Although Wynn himself was not implicated in the money transfer investigation, his legacy continues to cast a shadow over the company. Wynn resigned in the wake of allegations of sexual misconduct, first reported by The Wall Street Journal, which prompted multiple regulatory inquiries and lawsuits.

Steve Wynn, now 82 and residing in Florida, has denied all allegations of misconduct and maintains no connection to the company he once led. Following his resignation, he sold his shares in Wynn Resorts and stepped down from the corporate board. In 2023, he reached an agreement with Nevada gambling regulators to cut ties with the gaming industry entirely, paying a $10 million fine while admitting no wrongdoing.

Wynn Resorts has faced significant financial penalties as a result of the allegations against its former CEO. In 2019, the Nevada Gaming Commission levied a record $20 million fine against the company for failing to properly investigate claims of misconduct. Massachusetts gambling regulators imposed an additional $35.5 million fine on Wynn Resorts for not disclosing the allegations during the licensing process for its Encore Boston Harbor resort.

 

This case demonstrates that casinos cannot turn a blind eye when foreign customers seek to evade U.S. laws,” said U.S. Attorney Tara McGrath, emphasizing the accountability of casinos in the largest forfeiture of its kind.

 

Future Plans

For Wynn Resorts, the $130 million settlement is a significant, albeit painful, step toward resolving the legal issues that have accumulated over the past decade. The company emphasized that it is committed to strengthening its internal compliance measures and distancing itself from the misconduct of former executives. As part of its ongoing reforms, Wynn Resorts has revamped its corporate governance structure and increased scrutiny over high-value transactions, particularly those involving international clients.

The settlement also marks a turning point in the broader regulatory landscape for casinos operating in the U.S. The Justice Department has signaled its intent to hold casino operators accountable for lapses in compliance, particularly when they involve international customers attempting to circumvent U.S. financial laws. McGrath's office has been at the forefront of this effort, targeting not only unlicensed money transmitting businesses but also the casinos that enable such operations.

In a final note, the Justice Department revealed that its investigation has led to 15 individuals pleading guilty to money laundering, unlicensed money transmission, or related crimes, with more than $7.5 million in criminal penalties paid. However, Wynn Resorts stressed that its settlement does not equate to an admission of money laundering—a critical distinction as the company seeks to rebuild its reputation.

For Wynn Resorts, the path forward lies in focusing on its future. With this significant settlement now behind it, the company is looking to turn the page and leave behind a period defined by legal challenges and reputational damage, while solidifying its position as a major player in the global casino industry.