If there’s one thing that running a casino has in common, it’s a whole lot of rules. In fact, Title 31 training is one of them. The law requires casinos to provide training to employees on the basics of anti-money laundering (AML) compliance. Failure to provide it will subject employers to investigations and penalties that are disastrous to any business.
Here’s how Title 31 applies to casinos: it takes effect in your business if your gross annual gaming revenue (GGR) is $1 million or more [6]. Your casino workers should know when to file reports, such as currency transaction reports (CTRs) for transactions in cash of $10,000 or more in a single gaming day [6]. You will also have to file suspicious activity reports when a transaction of $5,000 or more may indicate suspicious activity [6]. The penalties for violations of these obligations may be up to $100,000 per violation [3].
In this article, we’ll discuss Title 31 training for 2025. We’ll share with you who has to comply, what a good casino AML compliance program is, and how to build compliance training that works in keeping casino operators and their employees away from costly infractions.
What Is Title 31 and Why Does It Matter to Casinos
Title 31 are anti-money laundering (AML) rules for casinos that have been in place since 1970. It is part of the overall Bank Secrecy Act (BSA) that target the prevention of financial crimes.
Title 31 Regulations Summary
So, let’s take a closer look at what Title 31 means to you. Title 31 refers to the federal Bank Secrecy Act Regulations in 31 CFR [1]. Casinos and gaming operations should establish an anti-money laundering (AML) program directed towards identifying and reporting suspicious transactions of $10,000 and more (CTRs) [1]. Cash in and out casino transactions of $10,000 or more should be reported [4].
Title 31 casino regulations also require:
- Written procedures and internal controls
- Independent testing and audits
- Employee training programs
- Suspicious activity monitoring and reporting
Title 31 Requirements as Part of the Bank Secrecy Act
The Bank Secrecy Act grants authority to the Department of Treasury to create reporting and recordkeeping requirements for financial institutions for the detection and prevention of money laundering [7]. Title 31 is the component of the Bank Secrecy Act that applies to casinos and gaming operations.
In 2011, FinCEN moved its regulations from 31 CFR Part 103 to 31 CFR Chapter X to streamline regulatory oversight [7]. The Financial Crimes Enforcement Network (FinCEN) administers most of the BSA’s enforcement of compliance, though the Treasury Secretary has delegated some of these to other federal agencies including the IRS [3].
Casino AML and Title 31: Why Casinos Are Financial Institutions
Casinos are financial institutions as defined under the BSA since 1985 [4]. It’s a fact many operators don’t know. But it makes sense when one considers the services casinos offer which are very much financial services in their own right, including:
- Deposit accounts
- Credit extensions
- Wire transfers
- Issuing of checks
As such, any casino and card club grossing in excess of $1 million in GGR is required to comply with Title 31 requirements [5]. Those operations which fall below this threshold are instead subject to the recordkeeping and reporting requirements of Title 26 (IRC Section 6050I) [5].
Casinos and Card Clubs Who Must Comply With Title 31 in 2025
You may be wondering if Title 31 applies to your casino. Well, the answer is easy as long as you know some essential details.
Gaming Revenue Thresholds
Your gross annual gaming revenue determines whether or not you are covered under Title 31 casino requirements [5]. In almost every state in the US, casino operators whose annual gross revenue (AGR) exceeds $1 million [6].
It’s a different situation in Nevada. Nevada casinos only need Title 31 compliance if their annual GGR is over $10 million [6]. Below this amount, and you’re under Title 26 casino recordkeeping requirements instead [6].
Title 31 Casino Coverage Types
The following casino and gaming operations are subject to AML compliance, and must maintain a BSA/Title 31 compliance program if their GGR exceeds $1 million:
- Casinos with a state gaming license
- Card clubs providing banking or percentage games
- Tribal casinos and gaming operations on Indian lands (over $1 million in GAGR) [6]
Why? Because these gaming establishments are also considered “financial institutions” under federal law due to their financial services functions of handling large amounts of currency, executing wire transfers and extending credit [7].
Title 31 Casinos and Card Clubs vs Title 26: Differences
It’s all about size. Large casinos are Title 31 casinos while smaller operations are Title 26 casinos [5]. Title 31 is much more stringent. In Title 31, casinos file Currency Transaction Reports (CTR) for transactions of $10,000 or more in a 24 hour period [4]. Casinos must also establish AML compliance programs and train employees annually on BSA requirements and the casino’s policies and procedures [4].
Title 26 has reporting requirements as well, but they are not as rigorous or compliance programs and associated recordkeeping requirements [5].
The Essential Elements of a Title 31 Compliance Program
A Title 31 casino compliance program has five key elements that interrelate and support each other to effectively mitigate your casino from the risks of money laundering activities.
Internal Controls and Procedures
The first step towards a compliance program that works is to have it written down and shared with employees. Written procedures will prevent compliance failures and establish that the casino has controls in place to prevent and detect violations [8]. These procedures also put in place the measures to be taken in the event of a violation and include:
- Policy for large cash transactions
- Suspicious activity monitoring and detection
- Required recordkeeping [7]
The procedures also need a designated compliance officer in charge of the day-to-day activities for these internal controls and review the controls on an annual basis.
Independent Testing and Audits
Regular testing and audits are an important part of making sure your controls work and catch issues before they grow into big problems. The frequency of independent testing will vary based on your casino’s risks. Testing for most casinos should be independent compliance testing performed by a third-party every 12 to 18 months. This compliance testing should evaluate the effectiveness of policies and procedures and also identify gaps in casino AML compliance programs.
Casino Compliance Training Requirements
Employees are your first line of defense against money laundering schemes and employee training is what arms your staff with the knowledge of daily compliance tasks, such as how to detect suspicious activity, understand which transactions must be reported, and proper recordkeeping [8]. In addition to an annual training schedule, make sure you tailor the content of the training to the activities for the casino job roles [9]. Different jobs have different knowledge requirements for effective compliance.
Casino Compliance Software for Customer Identification and Verification
Your casino should use big data analysis software for procedures to identify and verify your customers. Customer identification programs (CIP) should collect and verify the names, addresses and SSNs for customer due diligence [3]. Verify identity using all available information to determine your customer’s identity and flag high-risk customers [8]. For high-risk transactions, you may also need to perform additional steps for enhanced due diligence (EDD) [1].
Suspicious Activity Monitoring and Reporting
Enhanced due diligence procedures and reporting systems should be in place to identify suspicious transactions. Casinos must maintain transaction monitoring procedures for the identification and reporting of suspicious transactions exceeding $5,000 [10]. File SARs within 30 days of detection of suspicious activity [11]. Monitoring for suspicious activity should look for structuring, dirty money, and unusual transactions [12].
Casinos and Title 31 Non-Compliance: The Consequences
At this point, we need to be completely frank about the penalties Title 31 violations carry. Enforcement of Title 31 has gotten a lot more serious in the last several years so let’s get to the facts.
Civil and Criminal Penalties for Violations
Title 31 has penalties that are very real. Civil penalties for negligent violations (non-willful or ordinary negligence) are $500 per violation [3]. This doesn’t sound like much but repeated negligent activity can have a penalty of $50,000 [13]. Violating recordkeeping requirements also come with civil penalties of $100,000 [3]. For willful violations (when done on purpose or with knowledge) the penalties are even more severe:
- Criminal fines of up to $500,000 [13]
- Imprisonment for up to 10 years [13]
- Being barred from serving as an officer or director of a financial institution for 10 years [2]
The Anti-Money Laundering Act of 2020, which amended the Bank Secrecy Act, increased the maximum individual penalty to $1 million [7].
Title 31 Real World Cases
Enough about the laws, what are the real world fines casinos are facing:
Artichoke Joe’s Casino paid an $8 million fine for allegedly “turning a blind eye to loan sharking activities and suspicious transfers of casino chips” [7]. Lake Elsinore Hotel and Casino were fined $900,000 for failure to establish an effective anti-money laundering program [1].
All in all, FinCEN issued $110 million in casino AML penalties from 2015-2016. Compare that to just $1.6 million from 2003 to 2014 [7]. They are serious about catching casino operators not paying attention.
Final Thoughts on Title 31 Compliance for Casinos
Compliance is how you protect your casino and your team. In this article, we’ve discussed the A to Z of Title 31, from figuring out if this applies to you, to all the components that a good compliance program needs and finally how regulators really enforce these regulations.
Let’s recap: The simplest way to know if Title 31 applies to your casino is to know your gaming revenue numbers. Do you gross $1 million or more? Then you need Title 31 compliance. For other states, you may need to make this same determination for employees as well as your gaming operation in general. Once you get through the confusion about the Title 31 and Title 26 differences, then it’s the five pillars of compliance that are the true workhorses that make your program actually work.
Start with your internal controls and procedures with an annual review. Make sure you test and audit those procedures to keep them from falling out of compliance. Give your employees good training on what they must do to comply. And use good technology for customer due diligence for CIP and suspicious activity monitoring.
Title 31 violations can carry civil penalties of $100,000 per violation for negligent violations. And if you are not so nice about it, willful violations result in up to $500,000 in criminal fines and up to 10 years in prison. Cases in recent years show that regulators are not going easy on casinos that choose to ignore AML regulations. Ignoring the rules doesn’t work.
But an effective AML compliance program is good for business. It keeps you from investigations, fines, and jail. It protects your business reputation. And it arms your team with the knowledge they need to do their job right. Compliance training is a lot of work, but it’s a lot less work than responding to regulators and trying to pay fines and settlements that bleed your casino dry.
Here at Vubiz, we make it easy. We make casino compliance training that actually makes sense and can be used in your casino or card club. It’s stress-free, jargon-free and just plain simple. With our training, you can protect your business and employees by investing in training compliance today.
References
[1] - https://www.americangaming.org/wp-content/uploads/2022/07/AGA-AML-Best-Practices-Guide-2022.pdf
[2] - https://alessa.com/blog/title-31-casino-compliance/
[3] - https://legal.thomsonreuters.com/blog/title-31-compliance-and-due-diligence-for-the-casino-industry
[4] - https://www.ecfr.gov/current/title-31/subtitle-B/chapter-X/part-1021
[5] - https://www.fincen.gov/resources/statutes-and-regulations/bank-secrecy-act
[6] - https://www.thefederalcriminalattorneys.com/title-31-compliance-for-casinos
[10] - https://www.mossadams.com/articles/2023/12/new-aml-compliance-rules-for-tribal-gaming-casino
[13] - https://alessa.com/blog/suspicious-activity-reports-for-casinos-explained/