TLDR Regulators collected $34 million from casino operators in September over anti-money laundering (AML) and know-your-customer (KYC) failures. One casino let a man gamble on 80 separate days without checking where his money came from. Another casino was fined for letting a high-risk gambler keep playing, even after it received a tip about him. Panelists at the Global Gaming Expo said regulators now want proof that compliance programs actually work. A DraftKings AML officer said poor communication between compliance and other teams was a common problem.
Casino operators paid $34 million in fines in September over anti-money laundering and know-your-customer failures. The figure was shared at the Global Gaming Expo, a major gaming industry event in the United States.
Melissa Gomez Nelson, a partner with law firm Dentons US, gave the number during a panel called “Identifying and Managing Emerging Financial Crime Risks.”
“That’s what regulators collected from casino ownership in response to investigations related to AML and KYC concerns,” Nelson said.
What the Casinos Did Wrong
The casinos involved were not named. However, Nelson described several of the cases.
One casino allowed a man to gamble on 80 separate days without verifying where his money came from. Another was fined for system-wide weaknesses in its anti-money laundering oversight, including past problems.
A third casino let a man keep gambling after it had labeled him a high-risk gambler. The casino had also received a tip about him.
“This is obviously a concerning issue because there were a lot of red flags that were flagged and issues that were raised within the operators’ organizations,” Nelson said.
Regulators Want Programs That Work
Abigail Singley, an advisory director at PwC, said enforcement actions have recently been loosened. Because of this, she said, having the basic parts of an AML program