Resorts World Las Vegas and Wynn Las Vegas May Have Troubles With New York Casino License

Resorts World Las Vegas and Wynn Las Vegas – may have problems when it comes to one of the coveted downstate casino licenses, the New York State Gaming Commission (NYSGC) is closely examining their legal predicaments, raising questions about their qualifications to hold such a valuable gaming license.

Resorts World Las Vegas, a subsidiary of the Genting Group, has found itself at the center of a high-profile scandal. Allegations have surfaced that former executive Scott Sibella permitted black market bookmakers to place bets at the casino, some of which were suspected to involve illicit funds. Sibella, who previously held the position of president at MGM Grand Las Vegas, has since pleaded guilty to violating the federal Bank Secrecy Act. This legal debacle has sparked concerns within the NYSGC about the potential impact on Resorts World’s bid for a New York City-area casino license.

The legal troubles of Resorts World are not the only ones being scrutinized by the NYSGC. Wynn Resorts, the operator of the iconic Wynn Las Vegas property, has also faced its fair share of challenges. The company recently agreed to pay a staggering $130.13 million to the Department of Justice (DOJ) to settle allegations of anti-money laundering violations – the largest fine ever imposed on a U.S.-based casino company for such admissions of wrongdoing.

The NYSGC, led by Chair Brian O’Dwyer, has taken a meticulous approach in evaluating the legal issues faced by Resorts World and Wynn Resorts. O’Dwyer has emphasized that the commission will thoroughly review all relevant material, including the allegations against these operators, before making a decision on the allocation of the three coveted New York City-area casino licenses.

Despite the legal troubles, Resorts World New York holds some distinct advantages in its bid for a downstate casino license. The company has been operating a slots-only venue in Queens for over a decade, contributing more than $4 billion in taxes to the state and becoming one of the highest-grossing regional casinos in the country. Genting, Resorts World’s parent company, has promised a significant expansion that would create numerous jobs if it secures one of the three coveted licenses. However, the CIMB Securities report has highlighted that the Las Vegas legal issues could pose complications for Resorts World’s New York ambitions.

In addition to the anti-money laundering violations, Wynn Resorts has also faced other legal challenges. Last week, it was revealed that the company and several former executives agreed to a $70 million settlement with investors to resolve securities fraud claims. The plaintiffs alleged that top executives, including founder Steve Wynn, knowingly concealed allegations of sexual misconduct, leading to a stock slump once these allegations became public. While this issue was not directly addressed by O’Dwyer, it underscores the multitude of legal hurdles Wynn Resorts has encountered.

The NYSGC’s Chair, Brian O’Dwyer, has emphasized the commission’s responsibility to ensure that any licensed operators exhibit the utmost integrity. He acknowledged the seriousness of the allegations against Resorts World and Wynn, but also noted that in one instance, the complaint is still pending, while in the Wynn case, the DOJ settled the matter without filing criminal charges. Nevertheless, O’Dwyer stressed that the NYSGC will thoroughly review all relevant material to determine if the potential licensees possess the necessary qualifications to hold a casino license in New York.

Despite the legal troubles, Resorts World New York holds some significant advantages in its bid for a downstate casino license. The company has been operating in Queens for over a decade, contributing substantial tax revenue to the state and establishing itself as one of the highest-grossing regional casinos in the United States. Genting, Resorts World’s parent company, has promised a substantial expansion project that would create numerous job opportunities if the company secures one of the three coveted licenses.

It is important to note that while the New York State Gaming Facility Location Board (NYSGFLB) is responsible for recommending the allocation of the three downstate casino licenses, the final decision rests with the NYSGC. O’Dwyer emphasized that the NYSGC, not the NYSGFLB, will be the ultimate arbiter in determining the suitability of the potential licensees.