Poker Writer
A CNN investigation has found that rich Chinese gamblers, often termed “whales” in the industry, laundered cartel drug money through Las Vegas casinos, including the Wynn. A complex and layered story revealed several shocking findings. These revelations ultimately tied seemingly disparate worlds together in a web of illicit activity.
After sifting through hundreds of court documents and transcripts of interviews, CNN investigators found a paper trail that tied the Wynn, arguably the most affluent and high-dollar spot for Las Vegas gambling, to Chinese “underground bankers” and Mexican cartel drug money.
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Chinese Gamblers Needed Access to Cash
In 2016, the Chinese government cracked down on corruption and started strictly enforcing laws that prohibited Chinese citizens from taking more than $50,000 per year out of the country. That policy put a mighty damper on rich individuals’ potential gambling activities.
That in turn, could be highly costly to Vegas casinos that rely heavily on high-dollar action from whales. Casinos, thirsting for high-stakes clientele, are more incentivized to turn a blind eye to money-laundering infractions than report them.
In many cases, casinos have not conducted thorough due diligence to trace the source of large sums of money. The money is simply too alluring, and many gambling operators, both stateside and abroad, have been hit with fines for failing to enforce anti-money laundering (AML) policies.
That was a risk Wynn was willing to take, though.
Middlemen in the US Provide Key Clues
To access sufficient funds for high-stakes gambling, the Chinese whales required middlemen. These “underground bankers” provided an important connection to facilitate the high-roller betting.
Dating to at least 2018, investigators noticed a man who would walk into the casino with a satchel. He would then meet a host, who was a casino employee in charge of keeping high-roller casino patrons content. The host, the man with the satchel, and one of these high rollers would enter a room together. The satchel-toting man would then leave without gambling himself.
Four of these underground bankers identified in the CNN story were Chinese nationals in their 30s and 40s.
Dave Mesler, who was one of the investigators as part of the Las Vegas Financial Crimes Task Force, subpoenaed their phone records and noticed how often these men were talking to the casino hosts:
I found that these guys were talking to Wynn casino hosts multiple times a day every day. Hundreds a week. … I mean, I don’t even talk to my girlfriend this much.
The constant conversations between these Chinese nationals and the hosts became a clear indicator that large sums of money were likely moving between the bankers and the casinos at a pretty consistent rate.
The rabbit hole went even deeper than that, though. Underground bankers, after all, had to acquire the cash from somewhere.
Mexican Cartel Involvement
Enter the Mexican drug cartels. These operations held significant sums of cash, which they needed to launder. That made them natural business partners with the high-stakes gamblers from China who needed cash.
Investigators began watching the four Chinese underground bankers. They tracked their movements through Las Vegas and Los Angeles to see where the cash pickups happened.
They communicated frequently with Mexican cartel operatives as they drove around the cities, scooping cash from anyone who had it but couldn’t or wouldn’t deposit it in a bank account. CNN obtained DEA internal documents, which revealed that agents were wary of money launderers funneling cartel cash to the Chinese whale gamblers.
In a roundabout way, the sale of fentanyl, heroin, cocaine, and methamphetamine funded much of the gambling done by Chinese whales.
The investigators stated that it was unclear how much the wealthy Chinese gamblers knew about the origin of their funds. However, they were secretive and knew it was not something to discuss openly.
Wynn’s Involvement Led to Hefty Fines
Some staff members at the Wynn were even allegedly aware of the arrangement. The casino faced significant sanctions from not only the government but also local regulators. Wynn had to pay $130 million to the federal government in 2024 and forked over another $5.5 million to the state regulatory board.
The exact details were unknown until this investigation uncovered them.
Wynn gave a statement to CNN on the new details:
Wynn is committed to upholding the highest standards of integrity, compliance, and regulatory responsibility. We accept responsibility for the historical deficiencies identified, have taken meaningful remediation, and are dedicated to ensuring that such failures do not reoccur.
The casino also addressed the staff members who were aware of the scheme:
Immediately terminated the few employees involved because their actions violated the Company’s compliance program.
The Wynn is not the only property to pay the price for getting involved with illicit money. MGM Resorts was fined earlier this year for allowing an illegal bookmaker, Matthew Bowyer, to use funds and gamble at their properties. Resorts World was likewise fined for involvement with Bowyer, and Caesars was hit with the latest sanction.
Tip of the Iceberg for Casinos
The Wynn investigation tied to the four Chinese bankers, all of whom wound up arrested in separate sting operations, unraveled an elaborate scheme years in the making. And it may only hint at the sums of illicit money entering Vegas casinos. Investigators estimate that the total amount of money laundered into casinos is likely in the hundreds of millions of dollars each year.
One of the former detectives in the Las Vegas police department, Peter Fuller, compared the scope of these money-laundering schemes to the infamous Al Capone in the 1930s.
You just can’t go take cash from anybody, because what ends up happening is, you end up taking it from Pablo Escobar. It’s basically the same thing that took place in the ’30s with Al Capone and all that, all the bankers and everybody. ‘Oh no, I, I don’t sell drugs. I’m not in organized crime. I just set up companies for people. I just move money.’
Wynn, for its part, claimed it has since made internal policy improvements to ensure compliance with AML laws.
Chinese Financial Influence Increasing Worldwide
China’s ultra-rich class continues to grow at a rapid pace. According to one source, as many as 340 new individuals cleared 5 billion yuan (approximately $700 million) in net worth last year. That brought the total number of such individuals to about 1,500.
The increase in Chinese ultra-rich naturally begets an increase in individuals looking to move that money outside of the country for various purposes. When demand exists, some supplier is going to step up and try to fill it.
Authorities found that casinos in Australia and Canada have also accepted bets placed with laundered Chinese money in the last few years.
An expert on international organized crime also told CNN that Chinese underground bankers have become the go-to laundering source for Italian mafia groups and other criminal organizations.
Chinese authorities have attempted to crack down on certain international gambling schemes and scams involving Chinese nationals, such as the scam-city of KK Park in Myanmar. Still, many believe that President Xi Jinping’s campaign against gambling has been a failure.
