The Nevada Gaming Control Board (NGCB) is conducting an investigation into Fontainebleau Las Vegas concerning the issuance of credit to gamblers, which may have breached the federal Bank Secrecy Act’s anti-money laundering regulations. The probe came to public attention unexpectedly during a licensing hearing for Fontainebleau’s president, Maurice Wooden.

Investigation unveiled during licensing hearing:

During a recent NGCB meeting held to consider Wooden’s application for a permanent key employee license, commissioners discussed findings from an audit that uncovered irregularities related to credit issuance by Fontainebleau’s owners. Although Wooden himself is not an owner, board members questioned his awareness of these credit approvals. When pressed on the matter, Wooden stated he had no knowledge of the specifics involved.

As the Las Vegas Review-Journal reported, the disclosure of this ongoing investigation was unusual, as such matters are generally kept confidential. NGCB Chairman Kirk Hendrick quickly halted further discussion, emphasizing the confidentiality: “This is currently under investigation and it’s therefore confidential by law. So, I don’t want to go any deeper into this matter until the board has an opportunity to review it and, of course, speak with the licensee.”

According to KLAS 8 News Now, despite concerns raised, the commission voted unanimously to grant Wooden the license but imposed a two-year limitation, requiring him to appear before the board again in 2027 to reassess his status amid the ongoing inquiry.

The investigation into Fontainebleau is part of a broader crackdown by Nevada regulators on money laundering and other compliance violations within the state’s casino industry. This scrutiny has intensified following high-profile fines levied against major Strip operators such as MGM Resorts International, Genting Group’s Resorts World Las Vegas, and Wynn Resorts Ltd. for alleged illegal gambling activities and regulatory lapses.

Nevada prides itself on maintaining rigorous gaming regulation, long hailed as the “Gold Standard of Gaming Regulation.” According to the Nevada Revised Statutes and regulations, applicants for gaming licenses must demonstrate good character, honesty, and integrity to protect the state’s reputation and gaming industry.

Despite these stringent controls, the recent spate of investigations reveals that some illicit activities have evaded detection. A notable example includes Wynn Resorts forfeiting $130.1 million to the U.S. Department of Justice in 2023 over improper money transfers dating back to 2014.

Howard Stutz of the Nevada Independent noted in 2024 that while Nevada’s regulatory system is robust, it is not infallible. The recent cases involving multiple major resorts have raised concerns about the potential damage to Nevada’s reputation and the need for continued vigilance.

Licensing decisions and future implications:

Maurice Wooden’s licensing was ultimately approved with conditions, reflecting both the board’s acknowledgment of unresolved questions and its recognition of Wooden’s right to due process. His attorney argued that Wooden had not been given a chance to address the new investigation prior to the hearing, stating, “This issue was never raised. So the ability to respond to it was eliminated until today.”

The NGCB’s ongoing investigation will determine whether Wooden or other parties bear responsibility for the questionable credit practices at Fontainebleau. The board has made clear that unresolved regulatory breaches could lead to further disciplinary actions, including potential revocation of licenses.