Resorts World Las Vegas Under Regulatory Fire

Resorts World Las Vegas is under significant regulatory scrutiny as it faces a 12-count disciplinary complaint from the Nevada Gaming Control Board (NGCB). Originally filed in August, the complaint accuses the high-profile Strip property of welcoming individuals with alleged ties to illegal bookmaking, organized crime, and illegal gambling activities, reflecting an “overall lack of control.” The casino now has until December 9 to respond, following an extension granted by the NGCB.

The allegations come at a precarious time for Resorts World, which reported its weakest quarterly financial performance in two years. The response deadline and the scandal’s details highlight growing concerns about regulatory compliance in Nevada’s competitive casino industry.

At the heart of the complaint is a 31-page document outlining severe breaches of regulatory standards. Key allegations center around the casino’s ties to figures involved in illegal gambling schemes. Among them is Mathew Bowyer, a California bookie linked to money laundering activities at Resorts World. Bowyer allegedly used the casino to funnel funds from illicit operations, some of which stemmed from $17 million embezzled from MLB star Shohei Ohtani by his former interpreter, Ippei Mizuhara.

Further complicating matters is the role of Resorts World staff. The casino hired Bowyer’s wife, Nicole, as his personal host, raising questions about due diligence. These revelations, combined with accusations that Resorts World’s former president Scott Sibella facilitated similar schemes at MGM Grand, cast a shadow over the casino’s management practices. Sibella’s subsequent firing and his guilty plea to anti-money laundering violations amplify the controversy. The NGCB has requested the Nevada Gaming Commission (NGC) to impose penalties on Resorts World. As Nevada’s gaming regulatory framework allows the NGCB to prosecute and the NGC to adjudicate, potential consequences include license suspension, fines, or even state oversight of operations.

The severity of these allegations underscores the high stakes of regulatory compliance in Nevada. With the gaming industry serving as a major economic pillar, cases like this test the balance between accountability and maintaining a robust casino environment.

Financial Struggles and Strategic Outlook
The timing of this scandal coincides with financial challenges for Resorts World. The casino reported a sharp drop in Q3 revenue, falling to $177 million—a steep 18% decline from Q2. EBITDA took an even greater hit, plummeting 68% to $16 million.

In its earnings report, the company attributed these setbacks to external factors, including a hot summer and election-year economic uncertainty. Despite these challenges, Resorts World expressed optimism, outlining growth strategies such as targeting high-net-worth clientele, enhancing convention business, and expanding dining and entertainment offerings.

 

An overall lack of control allowed individuals with suspected and actual ties to illegal bookmaking and organized crime to operate within the casino.

 

Conclusion

As the December 9 deadline approaches, Resorts World faces mounting pressure to address the allegations while navigating financial headwinds. The outcome of this case could have significant implications for Nevada’s gaming industry, highlighting the importance of regulatory oversight in safeguarding the state’s reputation as a global casino hub.

Resorts World’s response will be pivotal—not only for its future but also as a test of the state’s commitment to upholding stringent gaming standards.