Nevada Gaming Compliance faces challenges as the chief operating officer of Wynn Resorts North America reassured regulators that the company has significantly improved following past violations. Learn more about the changes in the gaming industry here.
Brian Gullbrants, speaking at the Nevada Gaming Control Board meeting, highlighted the progress since previous anti-money laundering (AML) violations and allegations against founder Steve Wynn. Board members, like George Assad, expressed concerns about potential federal intervention due to AML noncompliance.
Nevada Gaming Compliance Under Scrutiny
Gullbrants appeared before regulators to discuss his suitability as an officer. The Board recommended his approval to the Nevada Gaming Commission. Assad warned that AML violations might attract federal attention, threatening Nevada’s gaming independence.
The Nevada Gaming Commission previously fined Wynn Resorts $5.5 million for failing to address misconduct allegations involving Steve Wynn. Massachusetts similarly fined the company for failing to disclose these claims. In response, Wynn Resorts forfeited $130 million to the U.S. government in 2024 for AML-related issues.
Since then, Wynn Resorts has enhanced its compliance measures, establishing a compliance board and undergoing external monitoring by the Massachusetts Gaming Commission. Gullbrants emphasized the transformation, citing weekly interactions with new employees to promote a culture of respect and transparency.
Anti-Money Laundering Reforms
The Nevada Gaming Compliance Board acknowledges the importance of these reforms. Chair Kirk Hendrick praised the improvements, stressing that employees now feel comfortable reporting issues to supervisors or the Board. A recent incident exemplified the changes, where Gullbrants prioritized employee well-being over a high-profile customer who acted inappropriately.
Board member Assad noted the broader industry impacts, emphasizing the need for compliance to avoid federal involvement. He warned of potential legislation creating a federal gaming commission. Should this happen, it could introduce a 4% tax on gaming revenues, increasing pressure on Nevada operators.
A source of ongoing compliance challenges is the unchecked influence of marketing departments. Kate Lowenhar-Fisher, soon to be IGT’s compliance officer, advised maintaining a strong compliance culture independent of marketing pressures.
Gullbrants, who previously served as executive vice president and COO at other Wynn properties, reaffirmed the company’s commitment to strict compliance. He emphasized the importance of adhering to AML regulations and the Banking Secrecy Act, with the compliance department setting the standard.
For further information on gaming industry regulations, visit the Legal Sports Report.
