The Nevada Gaming Control Board (NGCB) proposed a settlement with Resorts World Las Vegas (RWLV) on March 20 following a significant investigation concerning the casino's anti-money laundering (AML) practices. This settlement comes after the NGCB filed a 12-count complaint against RWLV, raising concerns about its compliance with AML regulations. The proposed settlement includes a fine of $10.5 million, which is significant but less than the $20 million Wynn Resorts paid in 2019 for failing to address sexual misconduct allegations against Steve Wynn.
The stipulation also outlines specific conditions that may apply to RWLV’s gaming licenses. It relates to an amended complaint accusing the operation of using unsuitable business practices over several years.
Central to the investigation are the activities of two illegal bookmakers, Mathew Bowyer and Damien Leforbes, who face federal money laundering charges. Bowyer managed an illegal operation with about 700 clients and channeled approximately $325 million in sports wagers, including significant bets from Ippei Mizuhara, a former interpreter for baseball player Shohei Ohtani. Mizuhara received a prison sentence of 57 months last month for bank fraud and tax evasion.
The NGCB's complaint against RWLV, issued last August, detailed various non-compliance issues regarding AML protocols. Bowyer had visited RWLV at least 80 times over 14 months until October 2023, losing about $6.6 million. In total, he lost a minimum of $7.9 million at the Vegas venue since its opening in June 2021, which cost over $4.2 billion to build, making it the priciest casino in Las Vegas.
The NGCB also filed charges against Nicole Bowyer regarding her role as an alleged casino host for her husband. In January, the Nevada Gaming Commission rejected a settlement proposal concerning her case. However, some commissioners indicated that they would impose a stiffer penalty than suggested by the NGCB.
As outlined in the complaint, members of RWLV's AML committee flagged Bowyer's gambling activity due to inconsistencies in his funding sources relative to his betting behavior. Documents reveal that Bowyer was often referred to as a “bookie,” a title that was reportedly removed from his record after an executive's request.
Leforbes, another bookmaker and notable poker player, features in the ongoing investigation. He has participated in various poker events, notably cashing at the World Series of Poker. Allegedly, he gambled $148 million within a period at RWLV, accumulating losses of around $12.3 million and reportedly transmitting payments via crypto wallets. He has also agreed to a plea deal for money laundering.
Regulators noted RWLV's failure to prevent individuals with gambling-related felonies from wagering at the casino, including Edwin Ting. Over 25 months, Ting lost over $800,000 despite his previous conviction for illegal gambling. Ting's criminal history involves involvement in organized crime linked to racketeering and gambling.
The NGCB's investigation revealed a concerning culture within RWLV, where potentially illegal activity was either ignored or overlooked for financial incentives. This settlement arrives amid ongoing sentencing delays for several involved in illegal gambling operations, including Wayne Nix, who faces sentencing after pleading guilty to conspiracy.
Scott Sibella, a key figure in the intertwined cases and former RWLV president, asserted that illegal bookmakers faced minimal barriers to entry. This has raised broader concerns about financial crimes in major casinos, particularly in light of previous settlements involving large fines for AML violations.
As part of the NGCB settlement, it reserves the right to file additional complaints based on any future criminal actions against RWLV. The Nevada Gaming Commission will review the proposed stipulation during its meeting on March 27, where attorneys from both RWLV and the state will present details for approval.
