U.S. Treasury seeks to guard against
illegal sports wagers
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[December 23, 2014]
By Brett Wolf
(Reuters) - The U.S. Treasury Department's
anti-money laundering unit may soon ask casinos to be on the lookout for
illegal sports wagers flowing into the U.S. financial system, according
to two sources familiar with the matter.
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The goal is to stifle illegal sports bets that cause billions of
dollars in funds, much of it with unknown origins, to move through
the U.S. banking system, according to the sources, who spoke on
condition of anonymity because they are not authorized to discuss
the matter publicly.
Guidance from Treasury's Financial Crimes Enforcement Network
(FinCEN) is expected to highlight for casinos "red flags" signaling
possible illicit sports betting activity so it can be reported to
authorities. One example might be unusually large wagers, a sign
that bets are being pooled, said one of the sources.
The Internal Revenue Service's criminal investigation division has
been focused on the money laundering risks associated with illegal
sports betting, both domestic and offshore.
![](http://archives.lincolndailynews.com/2014/Dec/23/images/ads/current/bonanzasteak_sda_112014.png) Authorities are concerned that some of the money involved in these
transactions could be linked to corruption and other nefarious
activity, the sources said.
In June, IRS special agents speaking at a Las Vegas conference
discussed a recent probe linked to Costa Rica and warned of a
crackdown on U.S. casinos that allow illegal sports book operations
around the world, including online outfits, to balance their bets by
placing casino wagers.
The agents told the audience the volume of illicit gambling funds
pumped through casinos by criminal bookmakers has grown to tens of
billions of dollars per year and exceeds even the sums laundered by
narcotics traffickers.
The U.S. Treasury Department and Justice Department have increased
pressure on casinos to comply with anti-money laundering laws and
regulations.
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The enforcement push began in August 2013 when Las Vegas Sands Corp
agreed to pay $47 million to settle with the Justice Department over
anti-money laundering failures. Two months later, Caesars
Entertainment Corp disclosed that FinCEN was investigating a
subsidiary, Desert Palace Inc, over such lapses.
There are signs the pressure will only increase. The IRS,
responsible for auditing casinos' anti-money laundering compliance
programs, has begun training additional examiners, one of the
sources said.
Spokesmen for FinCEN and the IRS criminal investigation unit
declined comment.
(Reporting by Brett Wolf)
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