Casinos have once again been thrust into the spotlight of global financial crime, with US authorities warning that Chinese money laundering networks are exploiting gaming floors and related industries to wash billions of illicit dollars.
According to a new analysis by the US Treasury’s Financial Crimes Enforcement Network (FinCEN), casinos – alongside banks and money service businesses – were among the sectors that filed thousands of suspicious activity reports linked to Chinese money laundering networks (CMLNs) between 2020 and 2024.
Although banks accounted for the vast majority of the 137,000 suspicious activity reports reviewed, casinos and related financial operators flagged more than $24 billion in suspect funds over the five-year period. These included irregular chip purchases, ‘chip walking’ – when gamblers leave tables without redeeming their chips – and large cash deposits unaligned with customers’ reported income.
Analysts say the findings highlight how casinos, especially in gaming hubs like Las Vegas and Macau, are attractive for criminal syndicates seeking to blur the line between legitimate gambling winnings and dirty money.
‘Casinos remain vulnerable points in the global financial system,’ the FinCEN report said, adding that unusual gaming practices and suspicious investment activity were repeatedly tied to Chinese passport holders or students in the United States.
The report also details how Chinese networks moved illicit cash through multiple fronts – from adult daycare centers in New York to real estate purchases – but casinos stand out as one of the few places where large sums of cash can still be turned over quickly with relatively little scrutiny.
In one case, a Chinese national flagged as a ‘student’ was linked to more than $22 million in suspicious casino activity, mostly reported by gaming houses. Another individual tied to four California colleges was associated with over $81 million in suspicious transactions, including gambling activities, luxury purchases and wire transfers from China.
The laundering methods range from straightforward to sophisticated. Some involved patrons buying chips with unexplained cash, playing minimally, and then cashing out to receive what appear to be legitimate gambling proceeds. Others used casinos as part of larger layering schemes, combining gaming with shell companies, property deals and luxury good purchases.
While Macau – the world’s biggest casino market – was not named directly in the report, experts note that its gaming-driven economy has long been a magnet for mainland Chinese capital outflows. Beijing has in recent years tightened controls on cross-border gambling and high-roller junket operations, moves partly aimed at curbing the type of capital flight and laundering now outlined by US authorities.
The findings come as regulators worldwide intensify pressure on casinos to strengthen anti-money laundering (AML) checks. In the US, casinos are required to report suspicious transactions under the Bank Secrecy Act, but compliance has been patchy.
‘Casinos are designed to move money quickly, often anonymously,’ said a former US Treasury official familiar with the report. ‘That makes them catnip for launderers, especially when combined with demand from Chinese nationals seeking US dollars outside Beijing’s strict capital controls.’
