High-Stakes Casinos Used to Launder Millions in Cash
Summary
A CNN investigation of court files and law-enforcement interviews found that underground bankers helped wealthy Chinese gamblers move large sums of cash through Las Vegas casinos, often sourced from Mexican cartels and prostitution rings. The activity became part of a federal case that led to a non-prosecution agreement with Wynn Las Vegas, in which Wynn paid $130 million and accepted responsibility for compliance failures.
The scheme involved middlemen who delivered cash to high-rollers at casinos and then repaid criminal groups via Chinese financial channels to evade U.S. oversight. Four men — Lei Zhang, Bing Han, Liang Zhou and Fan Wang — pleaded guilty in 2020 to operating an unlicensed money-transmitting business. Prosecutors said the network moved “hundred-million-dollar” sums annually; sentences varied from home detention to 15 months in prison and significant forfeitures.
Key Points
- Hundreds of pages of court files and interviews underpin CNN’s findings about a cash-laundering pipeline through Las Vegas casinos.
- Underground bankers bought US cash (often cartel proceeds) and repaid criminal partners via channels inside China to skirt cross-border controls.
- Wynn entered a non-prosecution agreement, paying $130 million to the federal government and accepting state fines of $5.5 million after admitting compliance failures.
- Some casino employees allegedly facilitated cash hand-offs in private locations such as hotel rooms, bathrooms and vehicles.
- Four middlemen pleaded guilty in 2020 for running an unlicensed money-transmitting business; penalties included prison time, home detention and forfeitures.
- Federal investigators say this laundering mechanism converted drug profits (including fentanyl proceeds) into clean bank deposits, aiding organised crime.
- Officials warn the surge in Chinese-related money laundering coincided with a US drug epidemic driven largely by opioids such as fentanyl.
Context and Relevance
This story matters for regulators, casino operators and anyone tracking financial crime: it exposes how gaps in anti-money-laundering (AML) controls and cross-border capital limits can be exploited. The case shows the reputational, legal and financial risks casinos face when compliance is weak, and it may accelerate stricter oversight and enforcement in the gambling sector.
For the wider industry, the investigation highlights trends in cross-border cash flows, the role of intermediary networks, and how criminal proceeds can be converted into legitimate deposits — a central concern for law enforcement and banks alike.
Why should I read this?
Because it’s the inside scoop on how big-money gambling got tangled up with cartel cash — and why that just cost a major operator a nine-figure settlement. If you care about casino regulation, AML risk or who’s moving money around the world, this saves you the digging. Short, sharp and worrying.
Author Style
Punchy: this is a high-impact story with concrete consequences — fines, guilty pleas, and a clear warning to operators and regulators. If you work in compliance or the gambling industry, don’t skip the detail.
Source
Source: https://www.gamblingnews.com/news/high-stakes-casinos-used-to-launder-millions-in-cash/