Why can cash-based businesses such as casinos be vulnerable to embezzlement or organized crime?

Cash-based businesses, such as casinos, are inherently vulnerable to embezzlement and organized crime due to the high volume of physical currency that circulates through their operations. Because these enterprises handle large amounts of cash, they provide significant opportunities for illicit activities, including the skimming of profits or the laundering of funds, if internal controls are insufficient.12

Critics of Indian gaming have sometimes cited this general susceptibility to argue that tribal casinos are at risk of being co-opted by corrupt individuals or criminal elements. However, proponents emphasize that these risks are not unique to Indigenous-owned businesses; rather, they are inherent challenges faced by any large-scale, cash-intensive gambling operation, whether run by private entities or state governments. To mitigate these vulnerabilities, modern casinos have increasingly adopted advanced technology, such as electronic monitoring and "chip tracking," to supervise games and detect financial anomalies.21