Fine of $10.5 million imposed on Resorts World Las Vegas for facilitating unlawful sports betting activities.

Fine of $10.5 million imposed on Resorts World Las Vegas for facilitating unlawful sports betting activities.

Las Vegas' Resorts World Cashes Out Big

In a jaw-dropping turn of events, the infamous Resorts World Las Vegas has agreed to pay a staggering $10.5 million fine, following accusations of catering to illegal bookmakers with ties to organized crime and millions in illicit gambling. This drama unfolds after a 7-month gripping saga, with the final episode going before the Nevada Gaming Control Board on the 24th.

The Board is set to take a decisive action on a complaint regarding alleged violations of the Nevada Gaming Control Act and Nevada Gaming Commission regulations. The whopping fine needs to be settled within 48 hours of the Board's ruling.

The Board alleges that Resorts World neglected its responsibilities as a license holder, jeopardizing the reputation of Nevada's thriving gaming industry. The 31-page complaint reveals a lax compliance culture that welcomed individuals with suspected or actual ties to illegal bookmaking, federally convicted felons, and organized crime.

Resorts World's leniency enabled these felons to place millions in wagers over an extended period. The casino's consistent disregard for its anti-money laundering program was uncovered in the investigation. The Board alleges that Resorts World's executives accepted a culture of indifference, where information of suspicious or illegal activity was either negligently overlooked or intentionally ignored for financial gain.

Notable individuals involved in the alleged illegal activities include Mathew Bowyer, convicted of operating an unlawful gambling business, money laundering, and tax evasion; Edwin Ting, convicted for conducting an illegal gambling business and known to have organized crime ties; and Chad Iwamoto, convicted for transmitting wagering information and failing to file tax returns.

Earlier this year, Nicole Bowyer — wife of Matthew Bowyer and a Resorts World registered agent — was on track for punishment by the Commission. However, they delayed the action, expressing a desire for tougher penalties, such as fines and a lifetime ban instead of the originally proposed five-year limit.

Resorts World opted for a settlement with the Board rather than risking a hearing before the Commission. The settlement terms require Resorts World to revise and maintain its anti-money laundering policy, retain records of employee ant-money laundering activities, provide training within 60 days, undergo an independent internal-audit review of their AML program, report any governmental agency investigations or disciplinary actions, and maintain its current AML compliance staff.

Resorts World claims it aimed to establish a culture of compliance and believed it was functioning according to industry standards and norms. They acknowledge the need for modifications to address compliance issues and initiated an investigation in 2023 to focus on their AML program and implement changes intended to lead the industry in policies, procedures, and practices.

Resorts World also started banning patrons identified as having criminal convictions related to illegal gambling or money laundering in 2023. Former President and COO Scott Sibella, who faced sentencing for federal crimes involving failure to report an illegal bookmaker, left Resorts World in 2023. Sibella was not named in the Resorts World complaint.

New leadership took over at Resorts World, with Alex Dixon appointed as CEO and Carlos Castro as Chief Operating and Chief Financial Officer. They also established a new position for a Chief Compliance Officer.

To oversee the AML program and regulatory compliance, a new Board of Directors has been appointed, with industry veteran Jim Murren as chair, former Gaming Control Board chair A.G. Burnett, Genting Berhad president and CEO Kong Han Tan, former Governor Brian Sandoval, a former Gaming Commission member and federal judge, and industry veteran Michelle DiTondo.

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Cent 1 - General Terms

• Fine: $10,500,000

Cent 2 - Compliance Measures

• Revision and maintenance of Anti-Money Laundering Policy
• Employee Anti-Money Laundering Records Retention
• Employee Training
• Independent Internal-Audit Review
• Reporting ofSignificant Events
• AML Compliance Staffing

Cent 3 - Specific Terms

• Cease and Desist Order
• Prohibition on Bookmaking
• Implementation of a Culture of Compliance
• Review of Policies and Procedures
• Initiation of an Internal Investigation in 2023
• Banning of Individuals with Criminal Convictions

Cent 4 - Changes in Leadership

• Scott Sibella's Departure
• Appointment of New Leadership
• Creation of a Chief Compliance Officer Position

Cent 5 - Board of Directors

• Jim Murren (Chair)
• A.G. Burnett
• Kong Han Tan
• Brian Sandoval
• Michelle DiTondo```

Sources:1. NBC News2. Casino.org3. Forbes4. Review Journal5. CBS Las Vegas

Resorts World Las Vegas, following the allegations, agreed to pay a fine of $10.5 million for catering to illegal bookmakers with ties to organized crime and millions in illicit gambling. As part of the settlement agreement, Resorts World is required to revise and maintain its Anti-Money Laundering Policy, retain records of employee anti-money laundering activities, provide training, undergo an independent internal-audit review of their AML program, report any governmental agency investigations or disciplinary actions, and maintain its current AML compliance staff.

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