IRS banks on casino watchdogs

"A lot of people come to Vegas to live large … including a small group of people who engage in crime," said IRS special agent Paul Camacho, the Las Vegas Sun reported Thursday.

With the economy suffering from a prolonged downturn, "Mortgage fraud and Ponzi schemes have added a new dynamic," to the casinos' need to be vigilant, he said. "This isn't just the drug dealer, pimp or organized crime figure. It's the guy who stole money form the church or from grandma," he added.

In recent meetings, IRS representatives have instructed casino employees to pick up the phone if they spot suspicious activity, including activity that falls just under thresholds that trigger a mandated report.

Casinos in the state filed a record 3,204 reports to authorities in 2008 and 1,628 between January and June of 2009, using the most recent reporting data.

From one point of view, the reports run counter to the casino's mission of proving a care-free getaway.

"This isn't great for repeat business and may have a chilling effect on gambling. Who isn't scared of the IRS when it comes calling?" said former state gambling regulator Greg Giordano.

The IRS, however, is trying to portray the reports differently. "You don't want your casino to be the place where this criminal gambled away people's life savings," Camacho said.

Copyright 2010 United Press International, Inc. (UPI).