AGA Issues AML Guidelines Amid Casino Scrutiny

Las Vegas, NV — The American Gaming Association (AGA) has released a comprehensive guide on anti-money laundering (AML) best practices, aiming to fortify an industry that has faced heightened regulatory scrutiny following a series of high-profile money laundering scandals over the past two years. The 64-page guide, issued ahead of next week’s Global Gaming Expo (G2E) in Las Vegas, provides commercial sportsbooks and casinos with a roadmap to develop risk-based AML frameworks, including procedures for detecting and mitigating illicit financial activity. The AGA, which represents the $329 billion U.S. casino industry and sponsors G2E, emphasized the importance of compliance with the Bank Secrecy Act and other federal regulations.

 

“Casinos must maintain effective risk-based programs to ensure both legal compliance and the integrity of the gaming industry,” the association said

Escalating Scrutiny on Las Vegas Strip

AML practices on the Las Vegas Strip have come under renewed attention, particularly in the wake of three major casinos settling charges with the Nevada Gaming Commission this year. Resorts World Las Vegas agreed to a $10.5 million settlement in March, the second-largest in state history, while Wynn Las Vegas and MGM Resorts paid fines of $5.5 million and $8.5 million, respectively.

The settlements were linked to deficiencies in monitoring and reporting financial transactions, including large-scale sports betting operations. The binary nature of certain wagers, such as betting on both sides of a sports outcome or “beard” betting on behalf of unidentified third parties, creates opportunities for money laundering, the AGA noted. The guide underscores particular vulnerabilities in sports betting, where wagers can be structured to launder illicit funds while minimizing potential losses. Similar patterns were observed in baccarat, craps, and roulette.

The use of virtual currencies in gaming adds another layer of complexity. Prosecutors in federal cases against illegal Southern California bookmakers have highlighted sophisticated crypto laundering schemes. In one instance, Damien LeForbes, a professional poker player, advised a client to distribute $100,000 transactions across multiple crypto addresses to evade detection. Authorities later seized two Trezor wallets from LeForbes’ residence.

To counter these risks, the AGA recommends converting virtual currency to U.S. dollars prior to wagering. Once converted, transactions are subject to the same Suspicious Activity Report reviews as cash transactions in casinos.

Legal Precedents and Industry Response

The recent regulatory focus follows multiple convictions of illegal bookmakers. Notably, Matt Bowyer received a one-year federal prison sentence for operating a sports betting ring that handled approximately $325 million. Bowyer laundered significant funds through Resorts World Las Vegas, illustrating vulnerabilities in existing AML safeguards. The AGA’s guidelines aim to provide industry-wide clarity on best practices, encompassing both traditional and digital gaming environments. The association emphasized that comprehensive AML frameworks are essential to maintaining the legitimacy of casinos and sportsbooks as legal and secure financial institutions.

G2E, one of the world’s largest gambling conferences, will feature several panels on AML compliance. Representatives from MGM, Wynn, and Resorts World are scheduled to discuss their approaches and lessons learned, reflecting the industry’s increased commitment to addressing financial crime risks. As casinos continue to expand sports betting and digital transactions, adherence to structured AML practices will likely remain under intense regulatory and public scrutiny.