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Thread: laundering in tribal casino

  1. #1
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    Assume Leroy has a hundred grand cash he got from selling crack and pimping ho's.

    Leroy is buddies with White Feather, an executive at a tribal casino.

    Leroy agrees to pay White Feather a couple grand up front in exchange for him generating a spurious W2-G showing Leroy won a hundred grand at the casino's slots.

    Might this not work to launder the hundred grand and if not why not?
    What, Me Worry?

  2. #2
    Originally Posted by MisterV View Post
    Assume Leroy has a hundred grand cash he got from selling crack and pimping ho's.

    Leroy is buddies with White Feather, an executive at a tribal casino.

    Leroy agrees to pay White Feather a couple grand up front in exchange for him generating a spurious W2-G showing Leroy won a hundred grand at the casino's slots.

    Might this not work to launder the hundred grand and if not why not?
    Why do through all that trouble? Why not just play high limit VP with a payback in the high 90s or high limit video black jack & get W2gs that way?

  3. #3
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    Yes, but that takes time and a degree of smarts, two things Leroy has in short supply.
    What, Me Worry?

  4. #4
    It could work, but I doubt it.

    Creating a W2G for $100,000 on a non existent win would create a paper trail. Due to the cash nature of casinos they would have a lot of checks and balances in place to ensure that a single person (the tribal executive) even if they were high ranking probably wouldn’t have the ability to do something like this completely on his own.

    Any type of audit or close examination would reveal no log for an actual payout on a machine for $100,000 or the casino distributing $100k to a player so the casino’s books would not balance out.

    I could be wrong, this is all speculation, but I highly doubt that a single casino executive even tribal, could pull this off without being discovered. Perhaps a very small tribal casino could make it work.

  5. #5
    Originally Posted by MisterV View Post
    Assume Leroy has a hundred grand cash he got from selling crack and pimping ho's.

    Leroy is buddies with White Feather, an executive at a tribal casino.

    Leroy agrees to pay White Feather a couple grand up front in exchange for him generating a spurious W2-G showing Leroy won a hundred grand at the casino's slots.

    Might this not work to launder the hundred grand and if not why not?
    I came up with a similar scenario, and I was LAUGHED at... I don't get why I was LAUGHED at when this is 100 percent realistic....:/
    https://photos.app.goo.gl/Zk2WAFzDcrJ7pjNB7

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  6. #6
    There was a crew that used to go thru the Jackpot Jeannie's creating handpays on VBJ. They would go up to just under 10k worth and then leave. Not really sure what the purpose was.

    A girl who worked there asked me what I thought was going on. I just assumed they were justifying the source of the money. Not really sure to this day. I did go check out the machines to see if something was up. Nothing

  7. #7
    I’ll take this a step further and say there is another reason why some people need handpays for tax reasons.

    In order to get free health care under Obamacare you have to have a certain level of income to get the maximum subsidy. If you don’t make enough you don’t qualify for it and have to apply for Medicaid. Or don’t get the full subsidy if you make too much or too little.

    While Gambling winnings don’t qualify for earned income credit or IRA deductions, they do qualify as income to find the sweet spot to get thousands a month back from premiums.

    A good accountant finds the sweet spot needed based on an individual’s circumstances and can use some the losses if needed to reach it.

    High limit VP is perfect for this as the theoretical loss is much lower than the gain in subsidies. 100% legal and just another example of how intelligent individuals find ways to legally beat the system.

    This works perfectly for someone younger who doesn’t work a regular W-2 job but still wants a quality Health Care plan.
    Find MDawg’s Adventures at WoV filed under fiction right here.... “ All betting systems are worthless. However, for the mathematically challenged, here is a forum of your own”

  8. #8
    I saw money laundering in action. Buy in at craps table for 30k in small bills... nothing over a $20.

    "Player" gets 20 yellows for $20k, plus 20 purples for $10k.

    Immediately walks to the cage.

    Cage phones the pit. Pit says the chip transaction was valid but says no bet was made.

    Pit critter tells dealers... if that guy comes back for another buy in don't take his cash.

  9. #9
    Mr Mdawg I think you're wrong about gambling wins helping you with taxes. Gambling wins with W2Gs only raise your adjusted gross income. The higher your AGI the less you get in benefits and tax breaks.

    Table game wins don't impact AGIs. They dont usually have W2Gs or 1099s.

  10. #10
    Originally Posted by AndrewG View Post
    I saw money laundering in action. Buy in at craps table for 30k in small bills... nothing over a $20.

    "Player" gets 20 yellows for $20k, plus 20 purples for $10k.

    Immediately walks to the cage.

    Cage phones the pit. Pit says the chip transaction was valid but says no bet was made.

    Pit critter tells dealers... if that guy comes back for another buy in don't take his cash.
    That's not money laundering. That's just suspicious activity.

  11. #11
    Originally Posted by MaxPen View Post
    Originally Posted by AndrewG View Post
    I saw money laundering in action. Buy in at craps table for 30k in small bills... nothing over a $20.

    "Player" gets 20 yellows for $20k, plus 20 purples for $10k.

    Immediately walks to the cage.

    Cage phones the pit. Pit says the chip transaction was valid but says no bet was made.

    Pit critter tells dealers... if that guy comes back for another buy in don't take his cash.
    That's not money laundering. That's just suspicious activity.
    No mention of ID required for the CTR?

  12. #12
    Originally Posted by AndrewG View Post
    Mr Mdawg I think you're wrong about gambling wins helping you with taxes. Gambling wins with W2Gs only raise your adjusted gross income. The higher your AGI the less you get in benefits and tax breaks.

    Table game wins don't impact AGIs. They dont usually have W2Gs or 1099s.
    For context are you discussing MDawgs comments from elsewhere? Even with him blocked, I don’t see him posting in this thread.
    Find MDawg’s Adventures at WoV filed under fiction right here.... “ All betting systems are worthless. However, for the mathematically challenged, here is a forum of your own”

  13. #13
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    I raised the initial question due to what I perceive as tribal casinos being shady from the get go.

    They start with the seeming fiction that they are in face "sovereign nations."

    Than term implies they're not subject to federal gov't control.

    But certain banking laws due apply to them.

    I suppose the real question is whether the fed'l gov't has the right to audit the books of a tribal casino, or is it "the honor system" as to compliance?

    Actual control of tribal casinos can lie in the hands of very few people; if they're "bent" at all then there's a potential for mischief, no question.

    So if one "bent" casino exec can generate a fake W-2G, issue it to Leroy and notify the feds: will there likely be any quetion or follow up by the feds, and / or do they have the right to question it and demand more info from the tribe?

    Dunno, complicated stuff.
    What, Me Worry?

  14. #14
    Originally Posted by MisterV View Post
    I raised the initial question due to what I perceive as tribal casinos being shady from the get go.

    They start with the seeming fiction that they are in face "sovereign nations."

    Than term implies they're not subject to federal gov't control.

    But certain banking laws due apply to them.

    I suppose the real question is whether the fed'l gov't has the right to audit the books of a tribal casino, or is it "the honor system" as to compliance?

    Actual control of tribal casinos can lie in the hands of very few people; if they're "bent" at all then there's a potential for mischief, no question.

    So if one "bent" casino exec can generate a fake W-2G, issue it to Leroy and notify the feds: will there likely be any quetion or follow up by the feds, and / or do they have the right to question it and demand more info from the tribe?

    Dunno, complicated stuff.
    While tribal casinos are less regulated than non tribal casinos, its a myth that they are unregulated. They are subject to outside audit by the Feds or through their state gaming tribal compacts.

    They also must comply with the banking secrecy act and proper tax reporting of jackpots etc.

    IRS publication 3908 (sorry don’t know how to link on here) goes into detail on what Tribal casinos are required to do regarding this.

  15. #15
    Originally Posted by MisterV View Post
    Assume Leroy has a hundred grand cash he got from selling crack and pimping ho's.

    Leroy is buddies with White Feather, an executive at a tribal casino.

    Leroy agrees to pay White Feather a couple grand up front in exchange for him generating a spurious W2-G showing Leroy won a hundred grand at the casino's slots.

    Might this not work to launder the hundred grand and if not why not?
    Do we know anyone who sells Coke who can figure this out for us?

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