Settling the Anti-Money Laundering Charges: A $10.5 Million Fine for Resorts World Las Vegas
Resorts World Proposes a $10.5 million Settlement to Address Alleged Money Laundering Regulatory Violations with NGCB
In a bid to put the past behind them, the gaming giant Resorts World Las Vegas (RWV), owned by Genting Holdings, has proposed a settlement of $10.5 million to the Nevada Gaming Control Board (NGCB). This settlement aims to settle the allegations of multiple anti-money laundering compliance failures that RWV faced.
The proposal, submitted on Thursday, comes in response to the NGCB's 10-count, 27-page complaint filed in August. This settlement is allegedly the second-highest fine assessed by Nevada and is yet to receive approval from the Nevada Gaming Commission, which is set to convene next week in Vegas.
A Shift in Strategy
Following the proposal, Resorts World announced in an email communication that they had reached a "pending settlement" with the NGCB. They expressed optimism, stating, "We look forward to the Nevada Gaming Commission considering the settlement and ultimately resolving this matter."
Initial reports suggested a more robust NGCB complaint with 12 counts and 31 pages. However, Genting's revised settlement has reviews references to "organized crime" omitted, signaling a more conciliatory tone.
A Step Towards Rectification
This settlement offer marks Genting's first public statement since the NGCB extended RWV's deadline to respond to its complaint to December 9. The settlement offer follows significant changes at RWV, such as the appointment of former Nevada Governor Brian Sandoval to the executive board in February. This move was part of an effort to rebuild corporate credibility after the firing of Scott Sibella, former President and COO of RWV.
Despite not being named in the NGCB's complaint, Sibella expressed concerns about the involvement of illegal bookmakers in major Las Vegas casinos, past, present, and post-opening of RWV. He questioned if these casinos would face investigation, igniting speculation about potential broader investigations within the industry.
Under the settlement, RWV will not only pay the hefty fine but also provide regular reporting of Anti-Money Laundering activities. They will also be required to retain all AML training records for at least five years.
The proposed settlement serves as a significant turning point for Resorts World Las Vegas, setting a precedent for the importance of proper AML compliance in the gaming industry. The final approval of the settlement now lies with the Nevada Gaming Commission, which will make a decision based on the presented evidence and new measures implemented by RWV to prevent future violations.
Enrichment Data:
- Leadership Overhaul: RWV has appointed Alex Dixon as its new CEO and reconstituted its board of directors, which now includes former MGM CEO Jim Murren. This change aims to ensure that the casino operates under stricter compliance standards.
- Enhanced AML Protocols: The casino must implement more robust anti-money laundering measures to prevent future violations. This includes better monitoring and reporting of suspicious activities to regulatory bodies.
- Fine Payment: RWV has agreed to pay a $10.5 million fine, which emphasizes the gravity of the violations committed.
- Future Monitoring: The Nevada Gaming Control Board has stated that it may initiate further disciplinary actions if any federal criminal, civil, or administrative actions are taken against RWV. This ensures ongoing oversight of RWV's compliance efforts.
The settlement serves as a significant warning to other casinos, emphasizing the importance of maintaining strict AML compliance to avoid similar penalties.
- The Nevada Gaming Control Board (NGCB) reportedly assessed a $10.5 million fine against Resorts World Las Vegas (RWV), owned by Genting Holdings, due to multiple anti-money laundering compliance failures.
- The casino-culture in Las Vegas, particularly at RWV, has reportedly been under scrutiny, with concerns about the involvement of illegal bookmakers in casino-games.
- Genting, following the Nevada Gaming Control Board's allegations, has reportedly proposed a settlement to address the AML issues, which will require RWV to provide regular reporting of AML activities and retain AML training records for five years.
- In response to the AML issues, Genting has made changes at RWV, including the appointment of former Nevada Governor Brian Sandoval and the hiring of Alex Dixon as the new CEO, aiming to rebuild corporate credibility.
- The casino-and-gambling industry is being encouraged to prioritize responsible-gambling initiatives and Stringent AML compliance measures, as indicated by the settlement between the NGCB and Resorts World Las Vegas, in an effort to prevent future violations and maintain a positive casino-culture.
