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The Nevada Gaming Commission has approved the $10.5 million fine levied on Resorts World following lengthy discussions on Thursday. This becomes the second largest fine ever issued by the regulator since casino gaming was legalized in 1931.
A vote was held after the hour-long discussion, the commission held a vote, resulting in a unanimous 4-0 decision. Commissioner Abbi Silver decided not to submit a vote due to her longstanding relationship with Scott Sibella, the former president of Resorts World Las Vegas.
Sibella recently got his Nevada gaming license and is currently on a year-long probation sentence following allegations of anti-money (AML) violations during his time at MGM Grand.
Mant had predicted that the severity of Resorts World’s violations, particularly those linked to its gaming operations, could lead to a fine that might rival or surpass the penalties faced by Wynn in 2019. However, the commissioners settled on the $10.5 million fine yesterday (Mar 27).
Resorts World will also face several new licensing conditions, including enhanced reporting requirements and additional AML reviews.
Wynn Resorts still maintains its record for the largest fine in the state’s history. The $20 million penalty was issued in 2019 after investigations uncovered that the company failed to address sexual assault allegations against its founder and then-CEO Steve Wynn.
RWLV Center of Massive AML and Illegal Bookmarking Scandal
The investigation into Resorts World Las Vegas began after Matthew Bowyer, a Southern California bookmaker, pleaded guilty to operating an illegal gambling enterprise in August 2024.
Bowyer’s operations gained significant media attention, particularly for his connections to Ippei Mizuhara, the former interpreter for MLB superstar Shohei Ohtani.
Mizuhara reportedly embezzled $17 million from Ohtani to support his gambling addiction and placed bets with Bowyer, who was known to gamble at Resorts World using those stolen funds. Mizuhara received a 57-month federal prison sentence in February for fraud-related charges.
The Nevada Gaming Control Board (NGCB) filed a detailed complaint against Resorts World, revealing that management was aware of Bowyer’s illegal activities but allowed him to continue at the casino. Bowyer’s wife, Nicole, was hired as a personal host for clients, which meant Bowyer benefited from his gambling losses.
In January, the commission rejected a proposed settlement for Nicole Bowyer, arguing that it was not strict enough. The NGCB initially suggested a five-year ban but later sought a lifetime ban and the chance to recover some profits from Bowyer’s illegal gambling.
Reports indicate Bowyer lost nearly $7.9 million over more than 80 visits to the casino.
Complete Board Overhaul for RWLV and Genting Berhad
The recent scandal and regulatory challenges surrounding Resorts World Las Vegas (RWLV) have prompted significant changes in the casino’s leadership structure.
In response to the issues at hand, RWLV and its parent company have announced a comprehensive managerial overhaul, including the creation of a new board of directors and the appointment of a new CEO.
This strategic shift was unveiled in December, with Erica Okerberg, an attorney for RWLV, giving full details of all the changes on Thursday. Alex Dixon, a seasoned professional in the industry, is set to take the helm as CEO.
The newly formed board also features an impressive roster of experienced individuals, including AG Burnett, the former chair of the Nevada Gaming Control Board; Michelle DiTondo, a principal at Avion Consulting; Tan Kong Han, CEO of Genting; Brian Sandoval, the former governor of Nevada, and Jim Murren, the previous CEO of MGM Resorts.
During the Thursday hearing, commissioner Brian Krolicki described this group as a ‘dream team,” highlighting their potential to restore stability to the struggling company. Several board members, including Murren and Dixon, attended the session.
Murren’s appointment is especially noteworthy given his past leadership at MGM Resorts, where high-profile bookmakers like Matthew Bowyer and Wayne Nix were known to operate. Both individuals are now facing serious legal issues related to illegal gambling.
RWLV Announce Layoffs Amid Dwindling Revenues
As part of the ongoing changes at RWLV, the casino announced on Wednesday (Mar 26) that it had laid off dozens of staff.
The company notably generated $190 million in revenue in the fourth quarter of 2024, a 21% decrease from 2023. The third quarter reports were even worse, with the company generating $177 million in revenue, 23% lower than Q3 2023.
“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,” RWLV 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.”
Source: iGamingBusiness
