Wynn Case Sparks Fears of Reputation Damage to Nevada Gambling Industry

The Nevada Gaming Commission has given the green light to a $5.5 million fine against Wynn Resorts after the company owned up to major slip-ups in following anti-money laundering (AML) rules. 

Commissioners Sound Alarm on Strip’s Image as Wynn Pays Millions to Settle Federal Case

The decision, which came through with a 4-1 vote at a public meeting on May 22, brought to light the damage to reputation that the whole industry might face. This comes on the heels of a string of crackdowns on big-name players along the Las Vegas Strip.

The penalty comes from a deal Wynn struck last year with the US Department of Justice. The company agreed to give up $130 million and dodge criminal charges. The problem was the resort’s link to unlicensed global money-transfer networks that channeled funds to its Las Vegas casino. The breaches lasting over ten years, included letting international guests move money and allowing proxy betting against Nevada’s gambling laws.

Although regulators recognized Wynn’s cooperation and attempts to reform, several commissioners voiced their frustration that this case further tarnished Nevada’s gaming industry’s image. Commissioner George Markantonis criticized what he saw as ongoing damage to the state’s reputation, pointing out Wynn as the newest in a line of operators whose compliance failures have attracted national attention.

He emphasized that the consequences extend beyond monetary fines, arguing that the real cost is long-lasting reputational damage. 

Wynn Fallout Prompts Calls for Stricter Vetting and Industry-Wide Vigilance

Markantonis also expressed worry about former employees involved in the violations, cautioning that while Wynn may have fired them, they might pop up at other properties unless more rigorous background checks come into play. He added that this problem has wider implications and is likely to hurt the industry as a whole.

Commissioner Rosa Solis-Rainey voted against the decision, arguing that the fine was too small considering how serious the wrongdoing was. She stressed that the company should have spotted warning signs earlier and that the punishment should fit the crime.

Chairwoman Jennifer Togliatti admitted the fine might look small compared to recent penalties for other casinos, but pointed out that these violations happened years ago and fall in the same time period as a similar $2 million case against Las Vegas Sands.

Despite previous setbacks, regulators acknowledged that Wynn has taken action to revamp its AML systems, boost staff training, and put in place tougher monitoring systems. Commissioner Brian Krolicki saw the case as a watershed moment for the sector, urging companies to view it as a warning story.