Seven months after filing a disciplinary complaint against Resorts World Las Vegas and its agents and affiliated companies, alleging it catered to illegal bookmakers with ties to organized crime involving millions of dollars, the Nevada Gaming Control Board Thursday agreed to a settlement with the operator that includes a $10.5 million fine.
The issue goes before the Nevada Gaming Control Board next Thursday for the final disposition of the complaint into alleged violations of the Nevada Gaming Control Act and Nevada Gaming Commission regulations. The fine must be paid within two days of the Commission action.
The NGCB alleges that Resorts World failed to fulfill its responsibilities as the holder of a privileged Nevada gaming license and that its actions or inactions caused damage to the reputation of the state Nevada’s gaming industry.
In the 31-page complaint, the NGCB details how agents uncovered a lack of compliance at Resorts World allowing “a culture that welcomed certain individuals with suspected or actual ties to illegal bookmaking histories of federal felony convictions related to illegal gambling businesses and ties to organized crime.”
The complaint asserts that Resorts World allowed individuals to place millions of dollars in wagers over many months, failing to adhere to its own anti-money laundering program. The investigation revealed an acceptance among Resorts World executives “of a culture where information of suspicious or illegal activity is, at a minimum, negligently disregarded, or at worst, willfully ignored for financial gain.”
Suspected or known felons wagering at Resorts World included Mathew Bowyer, who pleaded guilty in federal court to operating an unlawful gambling business, money laundering, and subscribing to a false tax return. In addition, Edwin Ting was convicted in federal court of conducting an illegal gambling business and is known to have ties to organized crime, according to the NGCB. Chad Iwamoto was convicted in federal court of transmission of wagering information and failing to file monthly tax returns.
Earlier this year, Nicole Bowyer, wife of Matthew Bowyer and a registered agent with Resorts World, was on track to be punished by the Commission, which put off the action, saying they’d like to see fines and a lifetime ban instead of five years as proposed.
Resorts World could have requested a hearing before the Gaming Commission or reached a settlement with the Board, but chose the latter.
The conditions of the agreement beyond the fine require Resorts World to revise and maintain its anti-money laundering policy and procedures; retain employee anti-money laundering records; help train its registered agents within 60 days; have its independent internal-audit review team report on Resort World’s compliance with its AML program and enhancements; report to the Gaming Control Board any notice from a governmental agency on a criminal investigation or disciplinary action; and retain its current staffing of AML compliance.
Resorts World said it sought to implement a culture of compliance and believed it was operating in accordance with industry standards and norms. It acknowledged, however, that it needed enhancements to address compliance issues. Resorts World said it started an investigation in 2023 to focus on its AML program and made changes that it said would lead the industry in policies, procedures, and practices.
In 2023, it started banning patrons identified as having a criminal conviction related to illegal gambling or money laundering.
Former President and COO Scott Sibella, who had his gaming license revoked by the Commission in December as part of a settlement involving his previous role at MGM Grand where he pleaded guilty to federal charges of failing to report an illegal bookmaker, left Resorts World in 2023. He was not named in the Resorts World complaint.
Resorts World appointed Alex Dixon as CEO and Carlos Castro as chief operating and chief financial officer. It also created a new position seeking a chief compliance officer.
Resorts World also created a Board of Directors to oversee the AML program and regulatory compliance in addition to overseeing the property. Former MGM Resorts International CEO Jim Murren was named chair of the Board. A.G. Burnett, former chair of the Gaming Control Board, was also named to the Board of Directors, along with Kong Han Tan, president, CEO and executive director of parent company Genting Berhad. Former Gov. Brian Sandoval, a former Nevada Gaming Commission member and former federal judge, was also named to the Board, along with industry veteran Michelle DiTondo.
Here is a copy of the settlement.
