In a move that could shake up Nevada’s gaming industry, Resorts World Las Vegas is set to pay a hefty $10.5 million fine to the state for allowing illegal bookmakers to gamble millions of dollars at the casino. The fine, which is poised to be the second-highest in state history, comes in response to a detailed complaint filed by Nevada gaming regulators. The fine would trail only the $20 million penalty levied against Wynn Resorts in 2019 for failing to properly handle sexual harassment allegations.

Allegations of money laundering and unsuitable operations:

The settlement, which requires approval from the Nevada Gaming Commission, comes after an extensive investigation into Resorts World’s operations, which allegedly fostered a culture of illegal gambling and money laundering. The probe uncovered ties to two known illegal bookmakers—Mathew Bowyer and Damien LeForbes—who gambled at the resort despite their criminal histories.

The Nevada Gaming Control Board (NGCB) filed a 12-count complaint against Resorts World, accusing it of operating with “unsuitable methods” by allowing high-profile criminals to gamble at its premises. Bowyer, who operated an illegal sports betting ring, and LeForbes, who were involved in similar illegal activities, were both reportedly allowed to wager large sums of money at the casino. Over the span of just one year, Bowyer lost $7.9 million, while LeForbes gambled away an astounding $10 million.

According to the NGCB’s investigation, despite operating an anti-money laundering (AML) program, Resorts World failed to adequately monitor or prevent the participation of individuals with known criminal ties to illegal gambling. The complaint describes a casino culture where individuals involved in illicit activities were not only allowed to gamble but also provided luxury perks like comps, flights, and gifts to encourage continued patronage. This led to the perception that the resort was being used as a venue for laundering money linked to illegal activities.

Las Vegas Review-Journal reported a statement from the Nevada Gaming Control Board, which highlighted the gravity of the situation: “This culture results in the perception and/or reality that Resorts World is an avenue to launder funds derived from illegal activity and/or to further criminal activity, causing damage to the reputation of the State of Nevada and Nevada’s gaming industry.”

The impact of leadership changes at Resorts World:

In response to the allegations, Resorts World has committed to several leadership changes and remediation measures. Former MGM Resorts International Chairman and CEO Jim Murren, former Nevada Governor Brian Sandoval, and other industry veterans have joined the company’s board in an effort to restructure its management and oversight. This reshuffling aims to address the weaknesses in the casino’s operations and ensure a more stringent adherence to AML regulations going forward.

The proposed settlement also mandates that Resorts World enhance its compliance efforts, including more rigorous AML training and oversight. The casino will now be required to submit regular reports on its anti-money-laundering activities, retain training records for five years, and hire additional compliance staff. Furthermore, all employees involved in direct customer interactions will need to attend specialized AML seminars at the University of Nevada, Las Vegas, to ensure better understanding and enforcement of regulations.

The situation surrounding Resorts World has also raised questions about the broader gambling landscape in Las Vegas. Former president Scott Sibella, who was at the helm of Resorts World during the period in question, is also embroiled in legal troubles. Sibella, who left the resort in 2023, had previously pleaded guilty to federal charges related to money laundering during his time at MGM Grand, another major casino in Las Vegas. Although he was not directly involved in the current complaints against Resorts World, his legal issues continue to cast a shadow over the resort’s operations.

Despite these challenges, Resorts World has expressed a desire to resolve the situation. A spokesperson emphasized that the company is looking forward to the Nevada Gaming Commission’s approval of the settlement and hopes to move past the issue with the necessary reforms in place.

The Nevada Gaming Commission will review the proposed settlement during its March 27 meeting, with a final decision expected shortly thereafter. If approved, Resorts World will not only face the $10.5 million fine but will also be subject to more stringent operational controls. Should the company fail to comply with the terms of the settlement, additional penalties could be imposed.