Major casino operator Las Vegas Sands Corp. has been put on the Nevada Gaming Control Board’s radar screen for allegedly allowing Chinese high rollers to play at its casinos by using shill players and thus keep low profile and hide their identities and the sources of their income.
The state gambling regulator has launched a probe into the matter. A spokesperson for the major gambling company, which owns some of the world’s top casinos, told Reuters that inquiries have indeed been made and that they have responded to those in due time and manner.
Chinese high rollers are among casinos’ favorite customers due to their reputation of big spenders. Las Vegas Sands operates two integrated casino properties in Las Vegas – The Venetian and The Palazzo, with both of them being quite popular with international players, particularly ones coming from China.
However, according to people with knowledge of the matter, the gambling operator has allowed customers to play through frontmen, thus avoiding mention of their names in the properties’ financial records.
First reports that Las Vegas Sands permitted shills at its local casinos emerged last year after two women were brought to court for failing to return more than $6 million in gambling debts at the gambling operator’s two Las Vegas-based casinos. Defense attorneys argued that both women had actually acted as shills for Chinese high rollers.
They had reportedly been recruited by Las Vegas Sands staff members to take gambling credits in their names. The actual casino customers had then used the chips taken to play without having their names written anywhere in the venues’ books. However, no proof has been found to support the allegations about casino personnel’s involvement in the matter.
The Nevada gambling regulator has launched a probe into the allegations in order to collect enough evidence as to whether the use of shills breaches regulations.
Allowing wealthy customers to gamble anonymously is a questionable practice that has often put casino operators under fire. Gambling venues are required under federal law to adopt effective anti-money laundering measures and to report any suspicious activity. The use of shills is favored by wealthy players but may compromise casino’s efforts to please regulators and top nation officials.
Las Vegas Sands has not been the subject to a serious investigation for the first time. In 2013, the casino company and its Las Vegas gambling venues were probed into in relation to money laundering allegations. The operator had reportedly failed to conduct due diligence on Chinese-Mexican businessman Zhenli Ye Gon, who had spent $45 million at its casinos in 2006 and 2007. Mr. Ye Gon had allegedly transferred the money for money laundering purposes. To avoid indictment, Las Vegas Sands agreed to pay $47 million to the US government.
