California’s Artichoke Joe’s Casino has agreed to pay a penalty of $5.3 million for Bank Secrecy Act (BSA) violations and for misleading gambling regulatory bodies. The settlement, secured by the California Department of Justice (DOJ), will have the largest paid penalty in California gambling regulation thus far.
California’s Gambling Control Act of 1998 requires all casinos to make prompt, complete and accurate disclosure to gambling regulators. DOJ’s Bureau of Gambling Control commenced an investigation against Artichoke Joe’s Casino after it failed to report a BSA-related investigation by the Financial Crimes Enforcement Network (FinCEN) in prompt and accurate manner. During FinCEN’s investigation, the casino accepted its BSA violations.
The Casino’s failure to disclose and its admittance of BSA violations both violated the Gambling Control Act. In addition to the financial penalty, the Casino will also pay investigation restitution to the DOJ. It will also complete a mandatory 36-month compliance period during which its actions will determine the fate of its state gambling license.