Caesars Entertainment Fined $9.5 Million in Penalties
16 September 2015
Money laundering is something that's often tied to gambling because of how relatively easy it can be to launder money through gambling establishments. This is largely due to the cash nature of the business and how casino chips are mixed up and traded back and forth during games. Different casinos have to adhere to rules that help to prevent money laundering, and Caesars Entertainment found out the hard way that they weren't doing enough with a $9.5 million penalty.
Why Such a Large Penalty?
In certain VIP high roller parts of Caesars Palace, there were certain deficiencies in their systems for handling players that led to the ability for players to stay anonymous in terms of reporting. These terms are largely defined and standards are set by the US Bank Secrecy Act, and the US Financial Crimes Enforcement Network was the group assigned to handle the situation. Caesars reportedly made an agreement to pay a penalty of $8 million for violations and agreed on measures to fix the problems. They also had to pay another $1.5 million to the state of Nevada for a total of just under eight figures.
Monitoring Suspicious Activity
Moving lots of money back and forth, to and from casinos is tricky business whether it's online or in a land-based establishment. It's not that easy for a high roller to just pull up with a suitcase full of hundred-dollar bills, and money often has to be sent via bank wire instead. Along these lines, the transactions have to be monitored closely because larger transactions are a bigger risk for money laundering schemes. Caesars was not monitoring these transactions appropriately, and that's what led to the big fines.
How Money Laundering Works
Criminal activities often create large amounts of money that's difficult to spend because of the attention it brings. If that money can be moved around in a way that makes it look like the funds were gained through legitimate sources, like gambling, then that solves a lot of problems for the criminals involved. That's why there are such strict guidelines and practices in place for handling anti-money laundering issues when dealing with big, high roller transactions like those made at Caesars Palace.
01 February 2017US Attorney General Pick Sessions May "Revisit" Online Gambling
One of the most important pieces of legalese that has come down in the United States for online gambling in the United States was a 2011 opinion about the Wire Act of 1961. The Wire Act was previously used as evidence that online gambling is illegal in the United States (and is the other major US law affecting online gambling from the UIGEA).Read full article
31 December 2016BingoBilly Ends Year With $1,000 Guaranteed Jackpot
BingoBilly always has great promotions this time of year, and their recent $1,000 jackpot game is a good example of this. For Christmas Eve, they held a special game that had $24,000 in prizes with a $1,000 top jackpot. It was a great way to give players some great online bingo rewards at the end of the year, and now they have other bonuses that players can take advantage of as well. Get $30 FreeRead full article
22 November 2016Australia Introduces New Anti-Online Gambling Bill
A new bill has been introduced in Australia that could have some important implications for online gambling in the country. The Interactive Gambling Amendment Bill of 2016 was introduced by Communications Minister Mitch Fifield, and its goal is to limit certain types of online gambling operations and to give the government more power over the online gambling sector.Read full article