Resorts World Las Vegas Faces Scrutiny and Financial Woes

Resorts World Las Vegas is facing a critical deadline, with the Nevada Gaming Control Board (NGCB) granting the casino an extension until December 9 to respond to a 12-count disciplinary complaint. The complaint, filed on August 15, accuses the luxury Strip property of severe misconduct, including ties to illegal gambling, organized crime, and illegal bookmaking activities. This extension, noted in Resorts World’s third-quarter earnings report by parent company Genting Berhad, comes as the casino faces mounting pressure from both regulatory bodies and financial setbacks.

The NGCB’s complaint, spanning 31 pages, alleges that Resorts World knowingly allowed individuals with connections to illegal bookmaking, gambling, and organized crime to frequent the casino, creating an atmosphere of poor oversight. One of the primary figures tied to the case is Mathew Bowyer, a California-based bookie who allegedly gambled millions at Resorts World since its opening in 2021. Bowyer, who acted as the bookie for Ippei Mizuhara, the former interpreter for MLB superstar Shohei Ohtani, has been implicated in a money laundering scheme involving both Resorts World and California’s Pechanga Resort Casino. Mizuhara, awaiting sentencing for stealing $17 million from Ohtani to pay Bowyer’s debts, further complicates the situation.

The NGCB has requested that the Nevada Gaming Commission (NGC) take formal action, with potential penalties including license suspension, revocation, fines, or placing the property under state oversight. These potential repercussions would severely impact the casino’s operations and reputation.

Management and Legal Troubles: The Case of Scott Sibella

Resorts World is also grappling with internal issues. Scott Sibella, the casino’s former president and COO, was fired in September 2023 under mysterious circumstances, with little explanation provided. Sibella’s troubles extend beyond Resorts World; in May 2023, he pleaded guilty to anti-money laundering (AML) violations dating back to his tenure at MGM Grand. The charges stemmed from his involvement in allowing known illegal bookie Wayne Nix to pay a $120,000 marker in cash. Sibella’s legal woes have not ended, as he is under separate investigation by the NGCB for his role at Resorts World. Details of that investigation remain confidential, but it adds another layer of complexity to the casino’s mounting troubles.

 

Financial Struggles: A Rocky Quarter for Resorts World

The casino’s troubles are compounded by its recent financial performance. Resorts World posted a dismal Q3, with revenue falling 18% from $218 million in Q2 to $177 million. EBITDA dropped by a staggering 68%, from $50 million to just $16 million. The company attributes this downturn to two main factors: an unusually hot summer in Las Vegas and economic uncertainty stemming from the upcoming election year.

Despite these challenges, Resorts World remains focused on growth opportunities. The casino’s strategy includes expanding its database for casino and resort marketing, targeting high-net-worth customers, and cultivating repeat business. Additionally, Resorts World plans to bolster its offerings in dining, entertainment, and retail in hopes of driving operating leverage and attracting new business. However, with ongoing regulatory scrutiny and a tarnished reputation, the casino may find it difficult to attract the type of customers it seeks.

 

RWLV remains focused on growth opportunities, including ongoing efforts to expand RWLV’s database for casino and resort marketing to yield high net worth customers.

 

A Clouded Future for Resorts World Las Vegas

As the deadline for Resorts World’s response approaches, the casino’s future remains uncertain. The NGCB’s complaint and ongoing investigations could lead to severe disciplinary action that would impact not only the property’s reputation but also its bottom line. With the recent financial struggles, the casino faces an uphill battle in regaining investor confidence and customer trust.

For now, the outcome of this regulatory saga and the broader implications for Resorts World’s operations will be closely watched by the gaming industry and Las Vegas visitors alike. While the casino continues to seek growth opportunities, its path forward is increasingly clouded by legal and financial challenges.