Resorts World Las Vegas to Pay Record Fine Over Suspicious Financial Activities

Resorts World Las Vegas has proposed a settlement with Nevada gaming regulators, agreeing to pay a $10.5 million fine. This settlement addresses allegations that the Strip casino failed to effectively monitor and report suspicious financial activities, specifically concerning interactions with two known illegal bookmakers. One of these bookmakers is Mathew Bowyer, who reportedly took millions in bets from Ippei Mizuhara, the former interpreter for MLB star Shohei Ohtani.

The stipulation, submitted to the Nevada Gaming Control Board on March 20, arose from an extensive investigation into what regulators described as “unsuitable methods of operation” at the casino. A vote on the settlement is scheduled to take place during the Nevada Gaming Commission meeting on March 27. If the commission approves the agreement, the proposed fine will become the second-largest in Nevada’s history, surpassed only by the $20 million fine imposed on Wynn Resorts in 2019.

Robyn McNeil reports that Resorts World has not admitted any wrongdoing in connection with the allegations. The NGCB accused the resort of failing to meet its anti-money laundering (AML) obligations. However, the settlement stipulates that Resorts World agreed to the resolution due to “uncertainty” regarding the outcomes of a potential hearing.

In a statement, Resorts World noted, “We look forward to the Nevada Gaming Commission considering the settlement and ultimately resolving this matter.” The NGCB’s original complaint, which was filed in August 2023 and later amended, centers on two high-profile gamblers with federal criminal inquiries: Mathew Bowyer and professional poker player Damien Leforbes.

Bowyer, who pleaded guilty to operating an illegal gambling business and money laundering last year, is reported to have lost nearly $8 million at Resorts World over more than 80 visits. His involvement is notably linked to Mizuhara, who suffered significant financial losses in connection with Bowyer’s gambling operation, amounting to $41 million on around 19,000 wagers. Mizuhara also reportedly embezzled nearly $17 million from Ohtani, as determined by federal investigators.

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Leforbes, who is awaiting sentencing on separate federal money laundering charges, lost approximately $10 million at the resort during a timeline similar to that of Bowyer. The NGCB’s complaint indicated that staff at Resorts World were aware of various red flags regarding both individuals. For instance, the casino’s internal compliance team reportedly raised questions about Bowyer’s funding sources multiple times, yet an internal request was made to remove discussions regarding his alleged bookmaking activities from his file.

The board’s complaint highlighted broader deficiencies in Resorts World’s anti-money laundering protocols and oversight culture, stating that known or suspected illegal bookmakers with criminal backgrounds were permitted to gamble on the property and were even treated as VIP guests. The NGCB explicitly noted that the operation and its employees “failed to demonstrate the necessary level of diligence expected from a Nevada licensee.”

These issues were evident during the leadership of Scott Sibella, the resort’s former president and COO, who pleaded guilty earlier this year for failing to report suspicious activities and was terminated in September 2023.

The proposed settlement mandates significant internal reforms at Resorts World. These reforms include mandatory anti-money laundering training for key personnel, hiring additional compliance staff, retaining AML training records for a minimum of five years, submitting periodic AML compliance reports to the NGCB, conducting annual third-party reviews of its AML program, and provisioning for an independent audit of AML compliance two years after the agreement is finalized. Resorts World Las Vegas