Nevada Gaming Commission approves $10.5 million fine for Resorts World Las Vegas
The approval came on a 4-0 vote, with commissioner Abbi Silver recusing herself from the matter. She cited a longstanding relationship with Scott Sibella, former RWLV president. Sibella last May was sentenced to a year of probation and later had his Nevada gaming licence revoked for AML violations during his tenure at the MGM Grand.
RWLV’s fine represents the second-largest penalty ever for a Nevada gaming company. The state legalised casino gaming in 1931.
Wynn Resorts still holds the record for its $20 million fine from 2019, which stemmed from the company’s failure to address sexual assault allegations against founder Steve Wynn. Additionally, Wynn himself also later paid a $10 million settlement related to the matter.
Given that RWLV’s failures were directly related to gaming operations, there was some belief that its penalty could match or exceed Wynn’s. That did not occur and commissioners had few questions or comments before approving the fine Thursday.
In additional to the financial penalty, RWLV will have a number of other licence conditions, including additional reporting requirements and AML reviews.
Krolicki: Complaints were “breathtaking”
The lone voice to comment on the matter at length was commissioner Brian Krolicki. He called the scandal “a profound teachable moment for the industry” while noting the severity of the violations. He also expressed a desire to move on and put an end to the saga, as did his fellow commissioners.
“Oh my goodness, the reading of the complaints, it’s breathtaking,” he said. However, Krolicki asserted he would “yield to the wisdom of the people who negotiated this”, alluding to the Nevada Gaming Control Board (NGCB). Nevada is unique in that it has a two-tier regulatory structure, with the control board reporting to the commission.
“I believe this is a wonderful fix and a new pivot for Resorts World,” Krolicki said. “I also believe this is a clarion call up and down [the Las Vegas Strip] that these rules are to be adhered to perfectly.”
Scandal is increasingly wide-ranging
RWLV is in the centre of a massive illegal bookmaking and anti-money laundering scandal with tentacles that continue to expand. The scandal primarily revolves around Mathew Bowyer, a California-based illegal bookmaker. Bowyer, whose bookmaking business reportedly included some 700 clients, currently awaits sentencing in federal court for money laundering charges.
Among Bowyer’s most notable customers was Ippei Mizuhara, the former English-language interpreter for MLB star Shohei Ohtani. Mizuhara stole $17 million from Ohtani to fund his addiction and place bets with Bowyer, who then frequented RWLV to gamble with the illicit proceeds. Last month Mizuhara was sentenced to 57 months in federal prison for bank fraud and tax evasion.
The NGCB last August filed a 31-page complaint against RWLV detailing the extent of the violations related to Bowyer. Management reportedly knew about Bowyer’s illegal business but allowed him and others with similar concerns to continue gambling at the property.
RWLV also hired Bowyer’s wife, Nicole, to be his personal host, meaning he effectively profited from his gambling losses. According to the complaint, Bowyer lost at least $7.9 million while gambling at the casino, across more than 80 visits.
Notably, the commission rejected a proposed settlement for Nicole Bowyer in January, saying the terms were not harsh enough. The NGCB had proposed a five-year ban, but the commission sought a lifetime ban and the possibility to recoup some of the profits from the illegal gambling.
Reached by iGB Thursday, Bowyer declined to comment on the fine.
Bring in the “dream team”?
On Thursday Erica Okerberg, an attorney for RWLV, gave a detailed presentation of all of the changes implemented by the casino and its parent company Genting Berhad. Perhaps the most notable were the formation of a board of directors for RWLV and a new CEO.
Both developments were announced in December. Industry veteran Alex Dixon was named CEO and the board includes the following:
- – AG Burnett, former chair of the NGCB
- – Michelle DiTondo, principal at Avion Consulting
- – Tan Kong Han, CEO of Genting
- – Brian Sandoval, former governor of Nevada
- – Jim Murren, former CEO of MGM Resorts
This new cadre, referred to Thursday as the “dream team” by Krolicki, is expected to stabilise the ailing property. A number of them, including Murren and Dixon, were present at the hearing. At one point commissioner George Markantonis said the “overcomplicated” nature of the company’s previous reporting system “muddied the waters” and contributed to the shortcomings.
Murren’s appointment to the board is noteworthy. When he was still overseeing MGM as CEO, Bowyer and other high-profile bookies, including Wayne Nix, reportedly frequented that company’s properties as well. Like Bowyer, Nix is also awaiting sentencing for charges related to illegal gambling.
Sibella worked under Murren as president of MGM Grand before moving to RWLV. According to the Nevada Current, both Murren and the NGCB were aware that Sibella and other executives were turning a blind eye to these bad actors as early as 2019. Sibella eventually was brought down for failing to submit a suspicious activity report when Nix paid a large marker at MGM Grand in cash.
Subsequently, MGM last January paid a combined $7.45 million in fines as part of a non-prosecution agreement with federal authorities. Dixon was also an MGM employee at the time but has not been accused of any wrongdoing.
“The two bookmakers that put Resorts World in this situation, gambled at all the major casinos in Las Vegas for many years, before, during and after Resorts World opened,” Sibella told the Las Vegas Review-Journal earlier this month.
Layoffs announced prior to hearing
In some ways, the approved settlement is a positive for RWLV in that it offers closure. However, the casino still faces an uphill climb, both financially and reputationally. On Wednesday (26 March), RWLV announced it had laid off dozens of full-time employees.
“To best position the company, we have made the difficult decision to restructure a portion of our operations by less than 50 full-time team members,” the casino said in a statement. “We appreciate the contributions all affected team members have made. This decision is part of our ongoing efforts to optimise efficiency and maximize the exceptional experience we seek to deliver to our guests.”
In the fourth quarter of last year, RWLV generated $190 million in revenue, down 21% from Q4 2023. EBITDA was just over $1 million, down more than $50 million year-on-year, per Genting reports. This came after an even more disastrous third quarter, which was the worst for the casino in the previous two years. That quarter saw $177 million in revenue, down 23% from the previous year.
“RWLV remains focused on improving margins through strategic growth and operational efficiencies,” Genting said in a statement following Q4 results. “In 2025, the property will leverage enhanced hotel system to extend its reach to customers and implement tailored casino offerings to drive repeat visitation.
“Additionally, RWLV will continue its casino and resort marketing initiatives to attract high-value guests while strengthening its convention business with established and new groups. Investments in new dining concepts, entertainment and retail will further drive engagement and operating leverage.”
On 27 February, Genting announced that CEO Lim Khok Thay would resign after 18 years in the role. He remains the company’s executive chairman.