Wynn Resorts fined $5.5 million by Nevada Gaming Commission in high roller recruitment case

The Nevada Gaming Commission has fined Wynn Resorts Ltd. $5.5 million in connection with illegal money transmission activities used to recruit high-stakes gamblers, marking the third major penalty imposed on a Las Vegas Strip casino this year over compliance failures.

On Thursday, the Commission approved the settlement in a 4-1 vote, with Commissioner Rosa Solis-Rainey dissenting on the grounds that the fine was too low given recent disciplinary precedents.

The decision follows a complaint filed by the Nevada Gaming Control Board last week, which alleged that Wynn employees facilitated unlicensed money transmissions in a scheme to attract foreign high rollers.

The employees involved are no longer with the company. Wynn issued a statement acknowledging the violations and accepting responsibility: “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, which violated Wynn’s own compliance policies and procedures, were undertaken by individuals with whom we severed ties years ago. We accept responsibility for those actions and are now glad the matter will soon be fully resolved.”

The Commission emphasized that while the transactions did not meet the legal definition of money laundering, they posed “serious money laundering implications.” Commissioner George Markantonis said Wynn’s reputation has been severely damaged by the incident. "It’s a huge body blow," he stated.

Markantonis expressed concern that former Wynn employees implicated in the case could reappear elsewhere in the industry. “They weren’t locked up. They’re like invasive fish species. Somebody threw them back in the lake and they’ll pop up at other casinos and resorts going forward,” he said.

The company had previously reached a $130.1 million nonprosecution agreement with the U.S. Department of Justice and the U.S. Attorney’s Office for the Southern District of California in connection with the same matter. That agreement resolved a federal investigation into Wynn’s use of unlicensed third-party agents to transfer funds for foreign gamblers.

These agents allegedly routed money through various third parties in Latin America and elsewhere before depositing it into a Wynn-controlled account in California. The funds were then credited to player accounts at Wynn Las Vegas. According to federal prosecutors, the transactions enabled foreign gamblers to bypass both U.S. and foreign currency transfer regulations.

Thursday’s settlement requires Wynn to continue maintaining its anti-money laundering (AML) program, conduct internal audits, retain all training records, and report changes in the program or staffing within five business days. The company must also ensure that an appropriate number of employees are dedicated to AML compliance and submit a compliance report within two years.

This latest penalty brings Wynn’s total fines from Nevada gaming regulators to $35.5 million since 2019. That includes a record $20 million fine related to the company’s failure to properly investigate sexual misconduct allegations against former CEO Steve Wynn.

Since the departure of Steve Wynn in 2018, the company has overhauled its executive leadership and compliance protocols. None of the current top executives, including CEO Craig Billings and Chief Global Compliance Officer Omar Khoury, held leadership roles during the time of the violations.

In its statement of stipulation, Wynn said it “immediately commenced an internal investigation and separated not only the employees involved in the misconduct, but also several employees who were aware of the misconduct and did not report it.”

The stipulation also talked about the company’s plans to create a compliance-first culture, stating: “Unfortunately, a few former employees failed to adhere to the company’s clear compliance directives by allowing certain customers and independent agents to engage in the unlawful conduct as described in the complaint.”

The company now joins MGM Resorts International and Resorts World Las Vegas, both of which were fined in recent months, $8.5 million and $10.5 million respectively, over money laundering-related violations.