[toc]The implementation of legal recreational marijuana in Nevada is generally successful, despite encountering a few difficulties.
Shortly after launch, shops ran out of product, leading to a “marijuana state of emergency.”
Casinos are increasingly concerned about changes in marijuana laws. The American Gaming Association (AGA) has written to the Department of the Treasury seeking clarification on several laws related to money laundering and financial transactions. The letter also specifically inquires about how to manage funds associated with marijuana.
Is marijuana money still something casinos need to avoid?
The AGA is specifically addressing the increasingly unclear status of money related to marijuana.
Previously, the Department of Treasury advised casinos not to accept money associated with the drug industry. In recent years, concerns about money laundering through gambling have grown among both casinos and the government.
Considering this, casinos are hesitant to welcome clients linked to the marijuana industry, fearing that the government might perceive the property as involved in money laundering.
The letter specifically includes a request from Geoff Freeman, the President and CEO of AGA:
We are seeking clear guidance on the industry’s responsibility to prepare Suspicious Activity Reports (SARs) for individuals who own or work for state-licensed marijuana-related businesses. We specifically need to understand if, and how, casinos should apply the 2014 marijuana guidance when filing SARs for patrons whose gaming funds seem to or are known to originate from marijuana-related businesses.
Federal regulation and state laws clash when it comes to cannabis
The crux of the misunderstanding lies in the Treasury’s assertion that state laws do not affect federal banking regulations. As marijuana remains federally illegal, state marijuana policies are irrelevant.
Hence, FinCEN, the banking network, is compelled to report any financial transactions related to marijuana to the Treasury department.
Attorney General Jeff Sessions wants to review marijuana policy, which could potentially provide casinos with some clarity on the issue. However, as pointed out by the Washington Post, instead of relaxing federal regulations, he may be planning to crack down on legal weed.
Casino industry remains extremely cautious
Currently, eight states have some form of regulated, legal marijuana. Although this number is increasing, the situation appears to be becoming more ambiguous as time progresses.
In the interim, casinos are exercising extreme caution. This was evidenced recently when Wynn expelled a prospective player simply because they owned a stake in a completely lawful marijuana media company.
Tourists and Nevada residents are definitely not pleased with the firm stance Nevada casinos are taking. However, until there is more certainty from Washington, the stakes are too high for casinos to gamble anything for marijuana.
