“Some people buy chips with money earned elsewhere and get a check from the casino when they cashes in the chips.
It’s how people launder money”
Yup, right on the nose - he worked for IRS at one time I believe - knows how to record keep so he can deduct his “losses” from his “winnings” and pays tax on the rest of the money - - - PRESTO - instant clean money - IRS is happy for the income, don’t look any further
Maybe I misunderstood you but buying poker chips with illegal money does not launder money.
Money laundering is when illegal money is reported as income through some entity or person, most commonly through a business. It is then reported as income on some tax return in order to be considered cleaned.
Someone here described it perfectly:
He gambles here and there and has to spend large dollars because he’s getting millions illegally..he likely loses loses hundreds of thousands each year (which is why the casinos love him) and then just reports income or even creates fake 1099’s and reports $5 million of income on his return.
The $5 million is now clean.