Resorts World Las Vegas, a prominent casino on the Las Vegas Strip, has been thrust into the spotlight as Nevada gaming regulators pursue a 12-count disciplinary complaint against the property. The allegations, brought forward by the Nevada Gaming Control Board (NGCB), revolve around failures in anti-money laundering (AML) compliance and accusations of enabling individuals with ties to illegal gambling activities.

The NGCB granted Resorts World an extension until December 9, 2024, to formally respond to the charges initially filed in August. The complaint outlines claims of regulatory lapses that could lead to severe repercussions for the casino, including potential sanctions or even the suspension of its gaming license.

Accusations of Regulatory Failures

The NGCB’s 31-page complaint describes a “lack of control” within Resorts World, alleging that the casino fostered an environment where illicit activities could thrive. According to the board, this led to a perception, if not a reality, that the property acted as a venue for laundering funds and supporting criminal enterprises.

The accusations include allowing individuals with documented ties to illegal gambling and organized crime to operate freely at the property. These individuals, the NGCB alleges, were “welcomed” and encouraged to gamble without proper scrutiny of their financial transactions.

One key figure in the case is former Resorts World President Scott Sibella, who held the position from 2019 until September 2023. Sibella had previously pleaded guilty to violating the federal Bank Secrecy Act (BSA) during his tenure at MGM Grand, where he failed to report suspicious financial activity. His history and alleged mismanagement at Resorts World have become focal points in the NGCB’s investigation.

Alleged Links to Organized Crime

The complaint highlights specific cases of wrongdoing, including Resorts World’s dealings with individuals such as Mathew Bowyer, a known illegal bookmaker. According to the NGCB, Bowyer gambled at the property for nearly two years without facing adequate scrutiny or consequences, despite clear signs of illicit activity.

Bowyer’s operations were linked to a larger scandal involving Ippei Mizuhara, former interpreter for Major League Baseball star Shohei Ohtani. Mizuhara stole nearly $17 million from Ohtani to settle gambling debts, with part of the activity tied to Bowyer’s illegal betting operation. Federal authorities have since secured guilty pleas from both Bowyer and Mizuhara on various charges.

Resorts World is also accused of conducting business with other individuals previously convicted of gambling-related offenses, such as Edwin Ting and Chad Iwamoto. The NGCB alleges that these actions exemplify a failure to uphold the rigorous standards required by federal and state gaming laws.

Regulatory Oversight Under Scrutiny

This case has reignited concerns about the adequacy of AML compliance across Nevada’s gaming industry. While the federal government holds primary jurisdiction over AML enforcement under the BSA, the NGCB’s complaint emphasizes the expectation that licensees maintain robust self-regulation. The board’s investigation underscores significant lapses at Resorts World, including failing to vet gamblers’ sources of funds and disregarding red flags tied to suspicious transactions.

Between 1985 and 2007, Nevada gaming regulators enforced their own AML rules through Commission Regulation 6A. However, the regulation was repealed due to its complexity, leaving enforcement largely in the hands of federal authorities. The Resorts World case has reignited debates about the need for state-level oversight.

Potential Consequences and Industry Implications

The NGCB has recommended that the Nevada Gaming Commission impose fines on Resorts World for each alleged violation. Additionally, the board has suggested measures such as appointing a supervisor or even revoking the casino’s license if warranted. However, the board acknowledges the economic significance of the property, which employs thousands of workers and contributes to the state’s tax revenue.

Despite the gravity of the allegations, Resorts World has defended its operations. In a statement cited by Las Vegas Review-Journal, the casino expressed its intent to vigorously contest the charges, asserting confidence in its ability to demonstrate compliance with regulatory standards. Meanwhile, the NGCB’s investigation into Sibella remains ongoing, with further details yet to be disclosed.