High-Stakes Casinos Involved in Laundering Millions in Cash

Underground Banking Scheme in Las Vegas Casinos

A CNN investigation, based on a thorough review of court documents and interviews with law enforcement, uncovered a network of underground bankers assisting affluent Chinese gamblers in moving vast sums of cash through casinos in Las Vegas.

Connections Between Criminal Organizations and High Rollers

At the center of this scheme was Lei Zhang, apprehended in 2019 carrying a large amount of cash into a Las Vegas casino. Federal agents identified him as one of several intermediaries who provided wealthy Chinese gamblers with funds to wager at Wynn and other casinos.

Investigators revealed that the cash often originated from criminal enterprises such as Mexican drug cartels and prostitution rings.

Due to China’s strict restrictions on transferring money overseas, affluent Chinese gamblers visiting the U.S. rely on illegal bankers who exchange cartel cash in the U.S. and reimburse the cartels through Chinese financial channels, which evade U.S. oversight.

This system has become a major tool for laundering money earned from illicit drug sales, including fentanyl, according to federal sources.

Additionally, some Wynn employees were implicated in facilitating cash exchanges in discreet locations within the casinos, and the establishment later acknowledged significant compliance shortcomings.

Wynn’s Legal Resolution and Compliance Efforts

Wynn Resorts reached a non-prosecution agreement, agreeing to pay $130 million to the federal government and a $5.5 million fine imposed by state regulators. The company stated that it fully cooperated with investigators, dismissed those employees involved, and enhanced its compliance measures.

The case prominently involved four men—Zhang, Bing Han, Liang Zhou, and Fan Wang—who all pleaded guilty in 2020 to running an unlicensed money transmitting operation.

The prosecution reported that these activities moved hundreds of millions of dollars annually through casinos, resulting in sentences ranging from home detention to 15 months in prison, plus substantial financial penalties.

The Broader Impact of Money Laundering in Casinos

Federal officials noted that all parties—casinos, gamblers, and intermediaries—benefited from this operation. Drug cartels laundered illicit profits into clean bank accounts, gamblers accessed funds quickly, and casinos maintained the patronage of wealthy players.

However, this laundering system has also enabled criminals to conceal massive amounts of drug money.

Brian Clark from the Drug Enforcement Administration highlighted that the surge in Chinese money laundering coincided with a serious drug crisis in the U.S., responsible for over 100,000 deaths annually, predominantly from opioids like fentanyl.