Especially in reference to casinos?
Edit: since I’ve gotten some answers, I want to add: is it possible to use sports betting to launder as well?
In: Economics
*edit. Seems like most people do not know the actual purpose of laundering money. **Laundering money, just to be clear, is to give it a paper trail where you can pay taxes on it and use it as you normally would without suspicion.** **You want the casino to generate tax forms. You want to pay taxes on the money.**
Say you are a computer programmer making $100,000 a year. If you had like $50,000 of questionable money that you wanted to introduce into your taxable income, then yeah you could use a casino to do that over the course of a couple of days. Each day, you buy in for a portion of that $50,000 (say $9k a day) and then play games for a bit. Then finally, when you have bought in for the total of $50,000, you play for a bit… and then you cash out. The casino will generate a report to the IRS of your winnings. **Once you pay taxes, you have now cleaned the money.** If the IRS asks where the money came from… you have a $100,000 a year job where you can say that you saved the money and went to Vegas to gamble away.
Same with sports betting.
The key thing about money laundering is you need another “clean,” legitimate income stream as co-mingling is how you get away with it.
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