I have to post again because I was wrong & you are correct Aussie1. Selective empathy is indeed a thing & would seem to fit well with how you describe yourself.
From one of many sites which google throws up. https://liveboldandbloom.com/11/personality-types/selective-empathy#1-why-do-people-practice-selective-empathy-
Were they money laundering - probably, did the club know about it - probably, did anyone care - no because it was a win/win situation for both parties.
Perhaps I shouldn't post the following but, what the heck!
Many years ago, I accompanied a 'foot soldier' who laundered some money at a casino in Macau. He actually visited multiple casinos but I went with him only to one place.
It's an incredibly easy process. At least, it was back then. Things may have changed. Maybe these days, CCTV footage can be accessed by authorities investigating possible money laundering matters?
You can exchange cash for gambling chips at any gambling table. No paperwork, No record of the transaction. You sit down at the table, exchange x amount of cash for chips and then leave the table. You don't even need to play whatever game is being played at the table.
You then move onto another table and do the same. The fellow I was with told me that he would exchange cash at 3 tables in each casino.
Next, you present at the cashier's window in the front foyer to cash in your chips. You're given the choice of cash (each casino has its own limit) or a cheque. He would ask for a cheque.
You then deposit the cheque into your bank account thereby creating a record that you've been paid x amount of dollars from ABC Casino, i.e. you 'won' x amount of dollars. And, it's simply not possible for anyone to disprove your assertion that the winnings were derived from an initial outlay of $50.00.
As I said, maybe things have changed. But, the foregoing was what I observed firsthand.
Mein, How do they do that at your local pub or club on the pokies? That's one on the excuses for banning pokies in clubs.
It may be a bit more tedious, so not for the large money launderers, but just pay with (illegally gained) cash and play the machines. At an average of around 85% return on what you put in, the money you then get paid is supposedly legally obtained. With multiple lines played x bet multiple credits it would not take long to go through $1,000.
When there are larger amounts of money to launder, that is when casinos come in. Of course they have been in the news a lot lately, so probably not as easy as before.