US Treasury Sanctions Mexican Racetrack Over Drug Cartel Connections

The U.S. Department of the Treasury is taking decisive action against the financial operations of Mexican drug cartels. On October 13, comprehensive sanctions were announced against a network closely tied to the Cartel del Noreste (CDN). This criminal organization is the direct successor to the infamous Los Zetas, a group responsible for some of the most violent mass-casualty events in Mexico's recent history. Investigators have particularly focused on the horse racing sector, which is reportedly used to systematically launder illicit proceeds.

The Office of Foreign Assets Control (OFAC) aims to sever the cartel's financial lifelines. CDN's stronghold is located in Nuevo Laredo, directly across the border from Laredo, Texas. As this crossing handles approximately 40 percent of all commercial traffic between the United States and Mexico, the organization wields significant strategic influence. By controlling industries like trucking, construction, and horse racing, the cartel seeks to solidify its power and legitimize drug trafficking profits.

Numbers and facts

A total of four individuals and 11 entities have been placed on the sanctions list. The primary target is Club La Molienda, a venue featuring a racetrack, restaurant, and bar on the outskirts of Nuevo Laredo. According to government records, the facility is owned by Miguel Ángel Treviño Morales, known as Z-40. Despite Morales' current incarceration in the United States, the track remains under the control of his associates. Investigators believe the cartel generates substantial revenue here through entrance fees and wagering.

Another significant finding involves the cooperation with Casino Centenario. This gambling establishment, previously sanctioned for ties to drug trade and reports of torture rooms, allegedly allowed its patrons to wager on races held at Club La Molienda. This completes a complex money laundering loop involving both physical sports venues and casino structures.

Background

The quarter horse industry has been exploited by criminal organizations for years. Cartel members purchase high-quality horses, often sourced from the United States, to compete at tracks like La Molienda. Among those newly sanctioned is Gamaliel Garza García, a businessman who has participated in races in New Mexico and California. While the U.S. tracks themselves are not accused of wrongdoing, this case highlights the cross-border scale of cartel activities.

"Today’s action exposes Cartel del Noreste’s exploitation of the horse racing sector to launder illicit proceeds and finance cartel operations." - Scott Bessent, Secretary of the Treasury

Since the start of 2025, OFAC has conducted approximately 40 actions against more than 500 individuals and entities. The current operation was made possible by a joint investigation with the Homeland Security Task Force (HSTF), involving the FBI, DEA, and IRS Criminal Investigation, among others.

Why it matters for German players

While German players are only indirectly affected by international sanctions, these events demonstrate why strict regulation is essential. In Germany, the State Treaty on Gambling 2021 (GlüStV 2021) provides a protective shield against criminal entanglements. While operators in Curacao or other offshore jurisdictions are often barely checked for money laundering, GGL-licensed providers are subject to the strictest controls. German customers must adhere to the monthly deposit limit of 1,000 euros, monitored via the LUGAS system. These measures not only protect players but also prevent German capital from entering global money laundering circuits like those recently uncovered in Mexico. To play safely and legally, players should strictly choose providers listed on the official GGL whitelist.

What it means for GGL-licensed casinos

For operators with a GGL license, such news confirms the importance of their strict compliance requirements. Anti-money laundering (AML) is not an end in itself; it protects the integrity of the entire market. German providers must ensure their payment flows are clean and have no connections to sanctioned entities. The recent U.S. sanctions against Mexican firms show how quickly seemingly legitimate businesses can become entangled in criminal networks. GGL-licensed casinos are required to scrutinize the source of funds if suspicion arises, making Germany one of the safest, albeit most heavily regulated, markets in the world.