Casino Regulation Update: Resorts World Las Vegas Faces Major Penalty from Gaming Authorities

The Nevada Gaming Control Board (NGCB) has announced its intention to impose a staggering $10.5 million fine against Resorts World and its associated companies, marking a significant enforcement action within the landscape of casino regulation. This announcement, made public on Thursday evening, serves as a stern reminder of the strict oversight governing the industry. The fine is set to address a disciplinary complaint comprising ten counts, which revised a prior complaint consisting of twelve counts originally filed in August.

This fine stands to become the second largest in the history of the state of Nevada, trailing only a $20 million penalty that was levied against Wynn Resorts in 2019. That fine was a result of Wynn’s failure to adequately investigate allegations of sexual harassment involving its former CEO, Steve Wynn.

Allegations Against Resorts World

According to the NGCB, Resorts World, under the leadership of President Scott Sibella, permitted individuals with criminal backgrounds, including those affiliated with illegal bookmaking activities, to gamble at its facilities from the year 2021 through 2023.

The disciplinary complaint cites “unsuitable methods of operation” related to known illegal bookmakers, Matthew Bowyer and Damien LeForbes.

Matthew Bowyer’s Gambling Activities

• Bowyer was linked to placing bets facilitated by an interpreter for LA Dodgers pitcher Shohei Ohtani.
• NGCB reports indicate he was allowed to gamble on 80 separate occasions between July 22, 2022, and October 1, 2023.
• During this time, he reportedly lost $7.9 million while enjoying various perks, including complimentary meals, promotional chips, discounts, and even flights on Resorts World private jet.

Damien LeForbes and His Operations

• Known to the casino staff as an illegal bookmaker, LeForbes faced gambling losses of $10 million from September 1, 2022, to December 16, 2023.
• He, too, received gifts such as complimentary accommodations and promotional chips for his patronage.
• In August 2024, he pleaded guilty in California to charges of running an illegal bookmaking business and money laundering.

The NGCB complaint highlights a culture at Resorts World that may contribute to the perception that the casino serves as a conduit for laundering funds from illegal activities. The concerns raised can severely tarnish the reputation of both the state of Nevada and its gaming industry.

The Fallout for Scott Sibella

President Scott Sibella was terminated from his position at Resorts World in September 2023 after revelations of a federal investigation into his connections to money laundering came to light. Additionally, Sibella was stripped of his gaming license following a separate investigation last December, which scrutinized wide-ranging allegations involving illegal bookmakers stemming from his tenure at MGM Grand. This inquiry culminated in a total fine of $7.45 million imposed on MGM Grand and Cosmopolitan of Las Vegas.

Next Steps

The settlement proposal between Resorts World and the NGCB is pending approval from the Nevada Gaming Commission, which plans to address the matter in their upcoming meeting scheduled for March 27.

Conclusion

In summary, the potential $10.5 million fine against Resorts World raises significant concerns about the management practices and operational integrity of the casino. Allegations involving high-stakes illegal gambling operations linked to top figures in the industry could spell major repercussions for both the establishment and the wider gaming community in Nevada. As developments unfold, it will be crucial for stakeholders to monitor the situation closely.