Resorts World Las Vegas Facing Historic $10.5 Million Fine

Resorts World Las Vegas (RWLV), the $4.2 billion casino property that opened its doors in June 2021, is on the brink of receiving the largest fine in Nevada history for anti-money laundering (AML) violations, following a proposed settlement with the Nevada Gaming Control Board (NGCB). The $10.5 million fine, announced Thursday, would be second only to the $20 million penalty Wynn Resorts faced in 2019 for mishandling sexual misconduct allegations against founder Steve Wynn.

The proposed settlement marks the conclusion of an extensive investigation into RWLV's alleged failures to maintain proper AML practices, stemming from activities at the casino involving illegal bookmakers, including Mathew Bowyer and Damien Leforbes. These two individuals, who are awaiting sentencing for federal money laundering charges, were key players in the violations that triggered the NGCB's investigation.

Key Allegations and the Scale of the Violations

The NGCB's probe began in earnest last August when the agency issued a 31-page complaint detailing a series of serious anti-money laundering lapses at RWLV. Among the most alarming revelations was Bowyer’s illegal sportsbook operation, which handled approximately $325 million in sports wagers over 14 months, including bets placed by Ippei Mizuhara, the former interpreter for Major League Baseball star Shohei Ohtani. Mizuhara, who was sentenced last month to over four years in federal prison for bank fraud and tax evasion, was linked to Bowyer’s illicit gambling operation, which involved a client base of 700 individuals whose wagers were funneled offshore.

The NGCB complaint outlined how Bowyer, a Southern California bookmaker, visited RWLV at least 80 times between 2022 and 2023, losing a total of $7.9 million at the casino. This amount was part of Bowyer’s broader betting activities, which also included significant losses at other Las Vegas casinos. Sources familiar with Bowyer’s operations have confirmed that he ran one of the largest joint betting-bookmaking enterprises in the United States, with corroboration from his wife, Nicole Bowyer.

In addition to Bowyer’s activities, the NGCB also highlighted concerns about Leforbes, a well-known poker player who used RWLV as a base for his gambling operations. Leforbes allegedly wagered over $148 million during a two-year span at the property. In addition to traditional betting methods, Leforbes reportedly used cryptocurrency wallets to facilitate transactions for his clients. Over the course of his visits to RWLV, Leforbes accumulated losses totaling $12.3 million.

The NGCB's investigation also uncovered multiple instances where RWLV failed to properly vet high-risk gamblers. Notably, the casino allowed convicted felons to place significant wagers, including Edwin Ting, who lost over $800,000 at RWLV between 2021 and 2023. Ting, who was convicted of operating an illegal gambling business in 2014, had been sentenced to prison and ordered to forfeit $2 million for his involvement in a major racketeering and money laundering ring tied to Russian organized crime.

In its complaint, the NGCB accused RWLV of fostering a culture where information about suspicious or illegal activity was either neglected or actively disregarded in pursuit of financial gain. “The NGCB investigation revealed acceptance among Resorts World executives of a culture where information of suspicious or illegal activity is, at a minimum, negligently disregarded or, at worst, willfully ignored,” the agency’s findings stated.

A Casino with a Checkered Past

This proposed penalty comes amid a wider backdrop of regulatory scrutiny within the Las Vegas casino industry. In addition to the Wynn Resorts fine for mishandling sexual misconduct claims, other casinos have also faced significant penalties for similar failures to comply with anti-money laundering regulations. In September 2023, Wynn Las Vegas settled for $130 million in criminal charges tied to illegal money-transmitting activities.

While the scale of these violations at RWLV is substantial, they are not entirely unique within the industry. Experts familiar with the inner workings of Las Vegas casinos have pointed to a pervasive issue of money laundering and other financial crimes in the gambling sector, with certain casinos failing to adequately address these risks despite the vast amounts of money flowing through their establishments.

The Fallout and Accountability

The proposed settlement also highlights broader accountability issues within RWLV. Scott Sibella, a former executive at RWLV, played a pivotal role in the casino's operations when many of these violations occurred. Sibella, who previously served as president of the MGM Grand, was sentenced last year to probation and a fine for his failure to file a suspicious activity report regarding transactions linked to illegal bookmaking activities at MGM. Sibella was later dismissed from RWLV in September 2023 for unspecified violations.

In a statement to the Las Vegas Review-Journal, Sibella placed part of the blame for the casino’s troubles on the illegal bookmakers who frequented Las Vegas casinos, including RWLV. “The two bookmakers that put Resorts World in this situation gambled at all the major casinos in Las Vegas for many years, before, during, and after Resorts World opened,” he said.

Despite Sibella’s defense, the NGCB has pushed for tougher penalties in this case, particularly in light of the severity of the violations. While the proposed $10.5 million fine is significant, it remains to be seen if the Nevada Gaming Commission will approve the stipulation as written, or whether further actions will be taken.

 

The NGCB investigation revealed acceptance among Resorts World executives of a culture where information of suspicious or illegal activity is, at a minimum, negligently disregarded or, at worst, willfully ignored for financial gain.

 

Conclusion

If approved, the $10.5 million fine against Resorts World Las Vegas will stand as a clear signal of the consequences for failing to comply with strict anti-money laundering regulations in Nevada’s gaming industry. As the investigation and criminal proceedings continue, the case will likely have lasting implications on how casinos handle their obligations to prevent illegal activities, particularly as more and more states consider expanding their gambling industries. With the NGCB's investigation still ongoing and several key figures awaiting sentencing, the final chapter of this saga may still have significant developments yet to unfold.