Resorts World Las Vegas, a high-end $4.2 billion property that opened in June 2021, is facing serious penalties for multiple anti-money laundering (AML) violations. The Nevada Gaming Control Board (NGCB) has recommended a $10.5 million fine after an investigation revealed severe lapses in the casino’s AML procedures. The violations included enabling illegal bookmakers with criminal backgrounds to gamble at the property. If approved by the Nevada Gaming Commission, this penalty will become one of the largest in Nevada’s gaming history, second only to Wynn Resorts’ $20 million fine in 2019.
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Resorts World Las Vegas Faces a $10.5 Million Penalty for AML Failures
The proposed $10.5 million fine against Resorts World Las Vegas is the result of an extensive investigation into the casino’s failure to follow AML guidelines. The Nevada Gaming Control Board’s inquiry, which began with a complaint filed in August 2023, uncovered evidence that Resorts World allowed two individuals involved in illegal bookmaking to gamble freely at their property. These activities directly violated Nevada’s stringent AML laws designed to prevent money laundering, a growing concern in the gambling industry.
The NGCB investigation spanned multiple months and revealed a pattern of negligence and disregard for regulatory guidelines, enabling money laundering operations to run unchecked. This case highlights the importance of proper AML procedures within the gaming sector and serves as a warning to other casinos and gaming properties about the severe consequences of non-compliance.
The Role of Illegal Bookmakers and Money Laundering at Resorts World
Central to the investigation were two illegal bookmakers who were given unrestricted access to Resorts World’s gambling facilities. These two individuals were responsible for significant amounts of illegal wagering and money laundering activities over an extended period, and their continued presence at the casino raised alarms among regulators.
Mathew Bowyer, one of the key figures involved, was implicated in operating an illegal gambling business and money laundering. Bowyer, whose gambling ring serviced approximately 700 clients, was allowed to gamble at Resorts World despite his known criminal history. His illegal bookmaking operation was extremely lucrative, handling sports wagers worth approximately $325 million through a network of clients. The illegal bets placed at Resorts World contributed to the laundering of substantial amounts of illicit money, which was funneled through the casino’s operations.
Bowyer personally lost around $7.9 million at Resorts World over a span of 14 months. During this period, he visited the casino over 80 times, engaging in high-stakes gambling activities that masked the true origins of the money he was using. His connection to Ippei Mizuhara, a former interpreter for baseball star Shohei Ohtani, is particularly notable. Mizuhara was recently sentenced to 57 months in federal prison for his involvement in illegal gambling and money laundering. The money Bowyer handled for Mizuhara further complicated the situation, as it indicated a coordinated effort to use the casino’s services for illegal purposes.
Damien Leforbes, another individual involved in the scandal, was a professional poker player whose gambling activities were also linked to money laundering. Leforbes reportedly lost over $10 million at Resorts World in just over a year, engaging in high-profile gambling that was used to launder money. His connection to illegal gambling operations and ties to organized crime made him a significant player in the case, drawing further scrutiny to Resorts World’s failure to prevent such individuals from using its facilities.
Money Laundering Techniques and the Casino’s Role
Money laundering in the context of the gaming industry often involves multiple stages, with illicit funds being introduced into the casino system through gambling activities. In this case, the two illegal bookmakers utilized Resorts World as a vehicle for funneling large sums of illegal money through bets on sports events, poker games, and other casino games. The primary technique involved in this laundering process was placing significant bets using illicit funds, which were then “washed” by either losing the money in gambling or withdrawing winnings through complex financial transactions.
Once the illegal money entered the casino system, it was difficult for regulators and compliance officers to trace its origins. Casinos like Resorts World often see large volumes of money pass through their systems daily, which makes it challenging to detect suspicious transactions without proper monitoring tools. However, the casino failed to implement the necessary compliance measures to identify and report the unusual betting patterns and transactions associated with Bowyer and Leforbes.
Moreover, Resorts World allowed these individuals to gamble over an extended period without taking appropriate action. The lack of sufficient monitoring systems and oversight created an environment where illegal gambling and money laundering could thrive. This oversight allowed the individuals to continue their operations, compounding the severity of the violation.
In these types of money laundering schemes, the casino often acts as an unwitting conduit for illicit funds. However, as regulators have noted, Resorts World’s failure to take action against suspicious individuals and their repeated visits indicates a more serious breakdown in compliance. If Resorts World had been more diligent in its screening and monitoring processes, it could have identified the red flags that were present throughout these illegal activities.
Leadership Failures and Culture of Negligence at Resorts World
One of the most troubling aspects of the case against Resorts World is the casino’s leadership failures. The NGCB’s complaint pointed to a culture within the casino where suspicious activities were routinely ignored. According to the complaint, “Resorts World allowed a culture to exist at its gaming establishment where individuals with suspected and actual ties to illegal bookmaking, with histories of federal felony convictions, were welcomed.”
This “culture of negligence” ultimately led to the casino’s downfall in this matter. The failure to investigate suspicious activities within the casino’s operations resulted in a severe breakdown in compliance. The leadership, particularly Scott Sibella, former President and COO of Resorts World, was responsible for overseeing these operations but failed to take corrective action despite clear evidence of illegal activities.
Sibella, who was terminated from his position in September 2023, later pleaded guilty to federal charges for failing to report suspicious activities. He attempted to deflect blame by claiming that the two bookmakers involved in the scandal had frequented other major casinos in Las Vegas before and after Resorts World opened. This comment highlights the lack of accountability and responsibility among Resorts World executives, who failed to recognize and address the risks posed by these individuals.
The casino’s leadership was slow to react to the warning signs and allowed a culture to persist that was indifferent to compliance concerns. This allowed the illegal bookmaking activities to continue unabated, with significant financial consequences for Resorts World and the broader gaming industry.
Settlement Terms and Efforts to Address AML Failures
Beyond the proposed $10.5 million fine, Resorts World has agreed to implement a series of corrective measures aimed at preventing future AML violations. The settlement includes several key actions that the casino must take to strengthen its compliance practices.
First, the casino is required to have key employees attend mandatory anti-money laundering seminars. These seminars will focus on identifying suspicious activities, understanding the legal requirements surrounding money laundering, and enforcing strict compliance protocols. Resorts World is also required to hire additional compliance staff to bolster its efforts in monitoring and investigating suspicious activities.
Another critical component of the settlement is the requirement for Resorts World to maintain AML training records for at least five years. This will help ensure that the casino’s employees are consistently educated about the importance of compliance and are better equipped to spot and report suspicious activities. Resorts World will also be required to submit regular AML compliance reports to the NGCB, providing transparency and accountability regarding the casino’s AML practices.
In addition to these measures, Resorts World will conduct annual reviews of its AML program to ensure that its compliance efforts are up to date and effective. These reviews will help the casino identify potential weaknesses in its procedures and make necessary adjustments to stay in line with regulatory requirements.
Conclusion: Lessons Learned from Resorts World Las Vegas’s AML Violations
The case of Resorts World Las Vegas serves as a powerful reminder of the importance of effective anti-money laundering measures in the gaming industry. Casinos, especially large-scale operations like Resorts World, are high-risk targets for money laundering and must implement robust systems to prevent the introduction of illicit funds into their operations.
The investigation into Resorts World revealed serious leadership failures and an environment that allowed illegal activities to flourish. These lapses in compliance, combined with the involvement of individuals connected to illegal gambling, resulted in severe financial penalties and reputational damage to the casino.
Moving forward, Resorts World must take the necessary steps to address its AML deficiencies and rebuild its compliance framework. The steps outlined in the settlement, including enhanced training, more robust monitoring, and greater transparency, will help the casino regain trust and ensure that similar violations do not occur in the future.
This incident also highlights the broader challenges facing the gaming industry as a whole in maintaining compliance with AML regulations. As casinos become more sophisticated in their operations, they must be equally vigilant in safeguarding against illegal activities. The failure of Resorts World Las Vegas to uphold AML standards serves as a cautionary tale for other operators in the industry.
Related Links
- Nevada Gaming Control Board
- U.S. Department of Justice – Money Laundering
- Wynn Resorts Settles for $20 Million AML Fine
- AML Training and Compliance for Casinos
Other FinCrime Central News Reports About AML Pressure on Gambling and Betting
- UKGC Imposes £686,070 Fine on Corbett Bookmakers for AML and RG Failures
- AUSTRAC CEO Focuses on Gambling Industry Compliance: Action Promised
- Spain’s AML Reforms: Strengthening Gambling Regulations to Combat Financial Crime
- Stake.com, a Multi-Billion Dollar Gambling Empire
Source: Bettors Insider, originally written by Matt Brown
