Let’s say I have 500k in cash from fraudulent activities. It seems like I could just go to a casino and play games in a way that minimises my losses or even, if let’s say I was a big organisation, try to work with some casinos for them to launder my money for a lower fee.
I suppose there are rules in place to prevent this type of activities. But what are they? How is this prevented from happening? It seems like it’s really easy to launder money if I needed to
In: Other
when you cash out for more than 10k, they collect your SSN to tax you ob your winnings.
If you regularaly are chashing out 500k, and not loosing much, they are going to notice.
the point of money laundering is to provide a plausible legitimate origin. “I take 500k to the casino each day” isnt a plausible origin.
If you’re exchanging hundreds of thousands of dollars into chips and then back into cash, you may as well just have a sign on top of your head that says “this is illegal money.” They would absolutely question you about the source of the money. Also, you’re required to pay taxes on winnings and casinos know how much money they exchanged in and out every night. And casinos have cameras everywhere. They can see that you walked in with the money.
So if you tried to claim a lot of cash as winnings, the IRS (or whatever tax agency) could see if the money actually came from a casino. And if you tried to exchange cash amounts like that at a casino, you would absolutely be questioned and likely refused service at a casino.
I mean.. You’re talking about asking a casino to commit a federal crime, and it’s leadership never be able to be involved in gaming again. That’s aside from the prison sentence.
Sure, you “could”. But you could also just decide to win the lottery. Similar odds of it working
Casinos track every chip. Newer casinos have rfid in the chips and they can tell exactly when and where it is played. You’re on camera the whole time. Dealers and pit bosses are trained to look out for this sort of thing.
The second you cash out 10k+ it’s reported to the irs. Any significant win that requires a handpay is reported to the irs.
If you are sitting there for 2 hours, barely betting, don’t lose much and cash out a large amount you will almost certainly be flagged for money laundering and looked at by security.
Nobody walks into a casino and drops 500k without the casino knowing who they are. Maybe a street dealer could launder a few thousand this way, but to launder half a million at the casino, you need to own the casino.
The casino cages are going to ask questions if you cash out more then $500 in chips. If you cash out more then $1000 they are going to ask you to fill out tax paperwork. They are going to watch the tapes and see that you changed a large amount and then didn’t really gamble.
Title 31 prevents money laundering in casinos. Any suspicious transactions are reported to the IRS. Any transaction over $5k and they need your ID and occupation. Any cumulative transactions over $10k within a 24 hour period and you will have to provide ID and SSN, which will be reported to the IRS.
Hey! I do this for a small tribal casino, I’m what’s called BSA Compliance Officer. A simplified version is we monitor every transaction, if a guest goes over a certain threshold we start a report on them that goes to the government. If you do this frequently enough we do a background check and you get flagged every time you game. There’s a lot of other things we do, but for the most part it’s observe and report.
It’s going to depend on where your from but like others have said there is a limit before it becomes taxed, there is often not much stopping you from going in every day with just a little bit less than the limit and washing some of the 500k every day. [Even if your really obvious.](https://www.youtube.com/watch?v=DoyH1dgj8Lo&t=54s)
sure, you can, and people actually do this
loose slot machines pay out up to 99 cents per dollar wagered
blackjack is like 98%
that gives you taxable income
generally if you have enough money to launder in such a way, paying 30-40% to do so isn’t that big a deal.
but $500k isn’t really a lot to have to launder it. is that a one time score?
if you have an illicit income then it’s time to start buying laundromats, nail salons, and car washes.
what’s the casino supposed to say? excuse me sir you’re losing too much money we just feel so bad we’re gonna have to ask you to leave.
again $500k isn’t a lot of money when you’ve got that much. it’s a lot when you don’t have it, not a lot when you do
If you claim $500k in winnings and get audited they’ll check that against records they already have of you buying $500k in chips and then cashing out $500k in chips and at that point, they have you dead to rights.
AML laws require that you show your ID and SSN for any transaction with a casino exceeding $10k. All of those transactions are reported to regulators.
If you do this in smaller amounts to avoid the 10k, it would work once or twice. It wouldn’t work when you reach hundreds of thousands of dollars. You wouldn’t have to convince the IRS that you are the luckiest gambler in history but you would have to convince a jury. If you don’t fess up and plea out, and you make them collect and look through the security footage of you gambling to prove you are laundering, don’t expect much leniency.
Just watch Ozark for an explanation. Worst case u get a dramatized explanation of it, best case is u watched one of the all time great shows
Although not great enough that I bothered to watch the second half of the final season due to them breaking it up into two parts. Pure spite on my part
Still a great show tho
Latest Answers