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Money laundering is a process by which criminals transform the proceeds of their activity into legitimate cash. Once money has been laundered, it is hard for law enforcement bodies to trace it as. Money laundering is the process of turning unlawfully obtained money into “clean” money. To put it another way, money obtained through illicit behavior is processed in a way that makes it appear as though it originated from a legitimate source. Tax evasion, embezzlement, theft, and narcotics trafficking are all closely linked to money.
First of all Mdawg wants all of you to know that when he gets checks from casinos from playing table games that the checks represent actual net winnings.
I've called various Vegas casinos and verified this. The rules for getting checks for table players are different than for slot players.
Has anyone here REALLY been offered a check for a W2G win of less than $10,000??? I know that I havent.
Don't we ALL agree that you should NOT get a W2G just for cashing out your own money without any play?
Why would they allow someone to plop money into a slot machine and convert instantly to check without playing, when they disallow conversion of unplayed table game chips to check?
How does this work?
Someplace I read it pays 1000:1?
Elsewhere I read this:
'If the shooter makes 4 points it pays 25:1. For 5 points 250:1 and for 6 points 2500:1.'
If he hits it, under what circumstances does the bettor get a 1099? Do they stop the game and get the bettor’s information and issue him an immediate paper 1099?
At Station Casinos (Palms) they have (or rather, had, at Palms) a variety of Baccarat side bets that pay up to 200:1. I cut a shoe once where these exotics kept coming up and the player at the table had a special limit and was betting them up to $100. (versus the usual $50. limit on the 200:1 shots). He took a single $500. chip to a tower that was ridiculously tall. He was winning up to $20,000. for a $100. wager. Every time he won, they would have to phone somewhere, and verify the win, then pay him. It was taking a long time because on that particular shoe the exotics were coming up a lot. I don’t think he was being issued a 1099 every time or any time though, at least I wasn't aware of any paperwork being generated.
ETA: rule also applies to sportsbook bets and poker room, though think there may be a higher threshold for poker tournaments.
The rule is if you win a bet that is at least 300:1 and the win is at least $600. It’s a W2G though, not a 1099. It’s the table game rule that picks up the six-point firebet. Yes the game is stopped and they come out and take everyone’s info that bet on it.
ETA: rule also applies to sportsbook bets and poker room, though think there may be a higher threshold for poker tournaments.
I received two 1099s when I was at a table and the shooter made all 6 points in the Firebet.
If you received a W2G it doesn't matter. I'm not going to argue... maybe your casino is different.
My 1099s came from the Rio and Harrah's Rincon from card craps.
Both a 1099 and a W2G can be used the same way when you report casino winnings on your tax return.
The key point is the mandatory withholding for larger table game wins.
I had only $5 on the Firebet so I had no mandatory withholding. At Caesars there was a $10 max Firebet and a $10k win would have required a $2500 mandatory withholding. By the way, Caesars once allowed a $25 max Firebet for a table reserved by some high rollers.
I've received a 1099 anytime I won $1200 or more in a poker tournament regardless of the buy in.
I received many 1099s from Hustler Casino in LA from their Thursday night $200 buy in tournament and I usually won in the range of $1800 for finishing in the top 5.
Alan you may be right and I may be misremembering on the 1099 vs W2G.
It really doesn't matter. They're treated the same. But Google the Firebet and you'll see 1099s.
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How Casinos Launder Money
If you have ever watched the critically acclaimed Breaking Bad you will be aware of the importance of money laundering to criminals. In the TV show, Walter White is the chemistry teacher turned ‘Meth Cook’.
Putting aside the moral questions surrounding White’s new career, he is confronted with the problem of not raising suspicion through his newfound wealth. In order to legitimise his criminal profits, White enlists the help of his wife to help him launder his money.
This is done in the show by White purchasing a car wash and putting through a huge number of false transactions. With each false transaction he adds money from his meth producing business, thus making it appear clean and legitimate to any authorities taking an interest in him.
In real life this method is used by a host of criminal enterprises. As mentioned earlier in the 1950s organized crime gangs in America would purchase casinos in Las Vegas to do just this.
However, criminals have now moved onto online casinos and gambling sites to launder money. Illegally earned cash will be used to place sure-fire bets on gambling sites, enabling future illegal income to be disguised as gambling winnings.
Is This Really Happening In Canada?
Yes. In fact, earlier this year Canadian police arrested nine members of the Calabrian organised crime group ‘Ndrangheta. The suspects were accused of illegal gambling and money laundering in the Toronto area.
Through wiretapping, surveillance and internal leaks the Canadian authorities uncovered details of a money laundering scheme that cleaned almost $70 million of ill-gotten gains mostly through gambling – both online and offline.
Within a few days of uncovering the plot the authorities had seized $26.8 million in assets and arrested further suspects in connection with Italian police. It is believed that illegal money earned through mafia activity in Italy was even being sent to Canada to be cleaned.
Details of the bust on the ‘Ndrangheta family emerged five months ago
How Do They Get Away With It?
On the face of it you might think that it would be relatively easy to spot money laundering activity at an online casino. If the criminal is patient and diligent though it can be very easy to fly under the radar and avoid suspicion.
For example, a sum of $100,000 could be deposited into an online gambling account over the course of 12 months. On an almost daily basis the account holder would deposit small amounts and wager even smaller amounts on a host of games.
To the security personnel at an online casino this activity could be viewed as normal, without arousing too much suspicion. The money laundering only becomes apparent when the deposits reach a certain amount and the customer withdraws everything at once before shutting down their account.
Aliases and fake details will most likely have been used in setting up the account, making it nigh on impossible for the authorities to trace the money or the culprit once the account has been shut down.
How Is The Industry Combatting This?
Strict laws have been imposed and operators of a Canadian online casino must comply to standards which are akin to the laws used in Great Britain. The country’s gambling authority has produced guidelines for companies to ensure that they are doing everything possible to identify and report suspected money laundering.
This means offering the highest levels of training to staff to ensure that they are familiar with the techniques used by criminals. Money has also been invested into software that is specifically designed to spot the signs of money laundering.
Online casinos have obviously taken these steps to protect the integrity of their businesses, but they have also done so to avoid fines. The Canadian gambling authority has promised massive fines to any company found guilty of neglecting their obligation to stop money laundering.
Consequently it is getting tougher for hardened criminals to launder their money through online casinos. However, all that means is that they will move onto a new target to launder their money where the restrictions aren’t quite as tight.
How Do Criminals Launder Money
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