Nevada’s Gambling Regulator Files Complaint Against Resorts World for Violating AML Laws

The Nevada Gaming Control Board (NGCB) is taking legal action against Resorts World Las Vegas after an investigation by NGCB Enforcement Agents uncovered potential failures in the licensee’s conduct with regard to the prevention of illegal gambling and money laundering. “Resorts World’s actions or inactions caused damage to the reputation of the State of Nevada and Nevada’s gaming industry,” read Thursday’s announcement.

According to the NGCB, Resorts World permitted felony convicts and illegal bookmakers to partake in gambling, and it is estimated that millions of dollars have been laundered on the premises of Resorts World’s casino halls.

One of the establishment’s patrons was Mathew Bowyer, the illegal bookmaker who made headlines for his involvement in the gambling scandal associated with baseball player Shohei Ohtani’s former interpreter. Other criminals mentioned in the NGCB’s announcement include Edwin Ting, who has been found to have operated a gambling business without a license, and Chad Iwamoto, who in 2014 pled guilty to transmitting wagering information and filing false tax returns. It is estimated that Resorts World raked in over $23 million in profits from the wagering of such individuals. Allegations further suggest those high in the corporate ladder of Resorts World might have “willfully ignored” potential cases of illegal activity in the name of profits.

The NGCB also filed a complaint against Nicole Bowyer, Mathew Bowyer’s wife. It is believed she was aware that his money was gained through illicit means yet still chose to profit from his wagering through her position as an independent agent for Resorts World. She has not cooperated with the NGCB either, which could serve as an aggravating factor down the line.

Resorts World Might be Forced to Pay Substantial Fines

The NGCB is yet to announce the size of the fine it plans on imposing on Resorts World, but if the company is found guilty of all alleged violations, Resorts World might be looking at millions in financial penalties. “All suspected violations of Nevada’s gaming laws and regulations will be fully investigated, and disciplinary action will be filed when warranted,” stressed NGCB Chairman Kirk Hendrick.

Curiously, this spring saw Resorts World’s former president, Scott Sibella, be sentenced to a year of probation for violations related to illegal gambling. Namely, Mr Sibella admitted to not investigating the source of illicit bookmaker Wayne Nix’s money when he frequented MGM Resorts and failing to submit a report, all actions that resulted in the enabling of money laundering. He was also mandated to pay a fine ($9,500).

Should the legal proceedings conclude Resorts World committed AML breaches, it will be far from the first wagering company to come face to face with such a problem. MGM Resorts almost faced prosecution because of Mr Sibella’s case, but prevented that outcome with a $7.45 million settlement.

Outside of the USA, two Australian gambling giants had to undergo extensive remediation procedures in recent years after being found guilty of AML violations. The Star Entertainment Group was handed an over AU$100 million ($66.3 million) fine and failed to regain eligibility to hold a casino license in New South Wales. The company is currently awaiting the result of the second probe into its conduct. Crown Resorts had to pay an even larger sum of AU$450 million ($300 million), but a recent ruling allowed the company to keep its New South Wales license, and it was largely successful in regaining stability.