Nevada Regulators Split as Caesars Fined $7.8M

Nevada gaming regulators on Thursday approved a $7.8 million anti-money laundering (AML) penalty against Caesars Entertainment for its years-long dealings with convicted illegal bookmaker Mathew Bowyer. But the vote exposed widening divisions within the Nevada Gaming Commission over how to assess the growing list of AML failures tied to Bowyer.

During deliberations, commissioners described Bowyer in various terms — from “bad actor” to “AML wrecking ball” — underscoring his fast-growing notoriety in Las Vegas. Bowyer, who frequented multiple casinos despite signs of illicit activity, is now connected to three major enforcement actions this year. MGM Resorts and Resorts World Las Vegas previously paid $8.5 million and $10.5 million respectively.

Bowyer was sentenced in August to one year in federal prison. The five-count complaint against Caesars linked his activity to Caesars Palace, Harrah’s Resort Southern California, and Harveys Lake Tahoe (now Caesars Republic Lake Tahoe).

 

Commission Split Over Severity of Caesars’ Failures

Caesars’ $7.8 million fine is the smallest of the three Bowyer-related penalties, but commissioners disagreed on whether that reflected lesser misconduct. Nevada Gaming Control Board Chairman Mike Dreitzer said the fine was calculated as triple the $2.6 million Caesars won from Bowyer. He described the case as “systematic negligence” spanning 2017 to early 2024 and emphasized that investigators found no evidence of intentional wrongdoing by Caesars employees. Caesars had flagged Bowyer as “high risk” for years but banned him only after federal authorities raided his home. Dreitzer argued the company’s conduct was less severe than in prior cases, where internal employees had deliberately bypassed AML safeguards.

Commissioner Rosa Solis-Rainey disagreed. She cast the lone vote against the settlement, arguing that Caesars’ failings were more troubling because Bowyer had been properly identified as a risk but no action followed. “I think it’s worse in [Caesars’] case where the programme worked, [Bowyer] was reported to the AML officer, and nothing was done,” she said. She contrasted this with MGM’s case, where she viewed “a bad actor” — widely understood as former executive Scott Sibella — as primarily responsible for the misconduct.

Commission Chairwoman Jennifer Togliatti supported the settlement, calling the fine “appropriately placed on the spectrum” of recent AML penalties. Commissioners George Markantonis and Brian Krolicki, who have grown increasingly frustrated by recurring AML failures, voted in favor despite expressing fatigue with Bowyer-related cases. “It’s almost numbing that we continue to have this conversation,” Krolicki said.

 

Caesars Leadership Offers Public Apology

The hearing prompted a rare joint appearance from three of Caesars’ top leaders: Chairman Gary Carano, CEO Tom Reeg, and Chief Legal Officer Ed Quatmann. The company is facing a difficult year marked by weaker Las Vegas results and a failed New York City casino bid.

Carano delivered a public apology, saying the company took accountability “on behalf of Caesars, our employees, our entire leadership team and our board of directors.” Reeg called the episode “a stain on the state” and said the company “never sacrifice[s] compliance for revenue,” adding that “we didn’t catch Bowyer and we should have, full stop.”

Quatmann received the most direct questioning. He acknowledged Caesars’ deficiencies and highlighted increased AML staffing and spending since 2017. He now has final authority over all high-risk source-of-funds decisions. When asked why Caesars acted only after Bowyer’s arrest became public, despite receiving information from other casinos, Quatmann said the company assumed “that’s not us” when looking at other operators’ AML failures.

 

We didn’t catch Bowyer and we should have, full stop.

 

Settlement Avoids Admission of Wrongdoing

Despite the apologies, Caesars did not admit to or deny wrongdoing as part of the settlement — a distinction its attorney Michael Alonso emphasized. He said the agreed-upon language was important to the company for undisclosed reasons unrelated to the state. Commissioners did not press for clarification. Earlier this year, MGM did admit wrongdoing as part of its own settlement.

The unanimous vote was broken only by Solis-Rainey’s dissent. The outcome reflects both regulators’ ongoing struggle to differentiate between negligence and intent, and the persistent pressure on Nevada’s largest casino operators as AML oversight intensifies.