Wynn Resorts Ltd disclosed in a filing to the Securities and Exchange Commission (SEC) August 6 that it had received two subpoenas during the first half of the year. The subpoenas relate to compliance with anti-money laundering policies and procedures at Wynn Las Vegas.
Official Requests for Information Regarding Possible AML Violations
The subpoenas Wynn Resorts received come from the US Attorney’s Office for the Southern District of California, asking for information related to transactions at Wynn Las Vegas that involves patrons and agents who either reside in or operate from foreign jurisdictions.
“The company continues to cooperate with the US Attorney’s office in its investigation, which remains ongoing. Because no charges or claims have been brought, the Company is unable to predict the outcome of the investigation, or reasonably estimate the possible loss or range of loss, if any, which could be associated with the resolution of any possible charges or claims that may be brought against the company.”
Wynn Resorts Ltd
Two days before the Q-10 filing to the SEC, Wynn Resorts announced its second quarter financial results. The casino operator posted 94.8% drop in the operating revenues year-on-year, sliding from $1.66 billion for Q2 in 2019 to just $85.7 million for the second quarter of 2020. Consequently, Wynn Resorts reported net loss of $637.6 million for the quarter, compared to net income of $94.6 million for the same period last year.
The biggest slump in operating revenue came from Wynn Palace and Wynn Macau, the operator’s two gaming properties in the Special Administrative Region (SAR), which posted 98.6% and 97.8% decrease, respectively. Wynn Las Vegas generated 86% less in operating revenues compared to the second quarter of last year, while Encore Boston Harbour closed doors March 15 and remained shut throughout the entire second quarter.
The official request for information from the US Department of Justice (DOJ) is the second in the space of two months related to casino operators and compliance with anti-money laundering (AML) procedures. In June, Marina Bay Sands, the Singapore casino resort of Las Vegas Sands, was subjected to an investigation from the DOJ, seeking to establish whether AML regulations were breached while handling VIP accounts.
In January, a grand jury subpoena was issued against a former compliance chief from Marina Bay Sands, as prosecutors from the Justice Department were looking for documents or records related to the alleged violations, including operations through junket companies and other third-party lending using credit from the casino.