Independent Banker - December 2022 - 71

L
exicon Bank in Las Vegas opened
its doors in August 2019, not long
before COVID-19 shut down the city's
entertainment businesses.
" This is a Vegas bank, " explains
Stacy Watkins, who was named
president and CEO of the
$237.6 million-asset bank in the early
days of the pandemic. " It was really
impactful for us when the lights on
the Strip went out-a very emotional,
crazy time. You have a bank that was
born out of COVID and could have
gone the other direction but ended
up thriving. "
Lexicon Bank didn't wait long to
make a splash, sponsoring the 2021
World Series of Poker. It also aimed
to capture the gaming market with its
Professional Poker Banking Program,
which is open to players who have
participated in at least one of the
World Series of Poker tournaments.
Professional players' finances
can be unpredictable and can bring
increased regulatory scrutiny, making
this a market many banks won't
touch. But as a community bank that
is there to serve the gaming hub of
Las Vegas, Lexicon Bank welcomes
these players with open arms.
Its Professional Poker Player
Program acts as a concierge banking
service for qualifying professional
poker players who need special
services like having funds wired ahead
" We do have legal businesses and
industries that make Las Vegas thrive. We
have found a way to service that and get
the regulators comfortable. I mean, that's
what a community bank does. "
-STACY WATKINS, PRESIDENT AND CEO, LEXICON BANK
to their tournaments. It also accepts
the occasional $1 million or $2 million
deposit from winning players.
A natural fit
In 2020, six-time World Series
of Poker (WSOP) winner Daniel
Negreanus moved his winnings
account to Lexicon after another
financial institution closed his
account-a development the
community bank addressed in a
Name:
Lexicon Bank
Assets:
$237.6 million
Location:
Las Vegas, Nev.
press release.
" With banking roots in the mecca
of gaming for poker, serving as a
banking partner for professional
poker players was a natural fit
for Lexicon Bank, " said Russell
Rosenblum, chairman of the board
and a poker enthusiast, in the
press release. " Our bank has direct
contact with the poker community
through personal relationships,
business partnerships and
community endeavors. "
Those poker deposits, like all others
at the bank, go through anti-money
laundering screening by software
linked to the bank's core system. But
the fundamental risk management
in the bank's professional poker
program is old-fashioned Know Your
Customer, done by people.
" The participating players sign a
contract acknowledging that we're
going to ask them questions and they
need to be forthcoming, " explains
Hilary Nelson, SVP and director of
operations and compliance. " We like
to know our customers really well.
What's nice is that the World Series of
Poker publishes a list of anyone who
plays, and we learn how many other
tournaments they play in around
the world. "
That in-depth customer knowledge
isn't just for regulatory requirements
or to control risk; it also enables
the community bank to provide
other services.
" If a professional player calls and
they need something that we're
not able to do, we try to get them
connected with someone that can, "
independentbanker.org Q 65
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Independent Banker - December 2022

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