Lots of money at play
New York’s massive success as a legal sports betting jurisdiction combined with its infrastructure makes it a prime bit of real estate for casino companies. But to quote a famous New Yorker, Notorious B.I.G, “Mo Money Mo Problems.”
“Of particular concern to me are that two of our… potential bidders for a new casino license, have been cited in Las Vegas for various violations of the law,” said Brian O’Dwyer, chairman of the state Gaming Commission. “These allegations are serious.”
Wynn agreed to a $130 million settlement in a federal case in which investigators found that the company’s Las Vegas property used an unlicensed agent and foreign bank accounts to send money to China and patrons in other countries that cannot obtain cash in the U.S.
The settlement is believed to be the largest forfeiture by a casino based on admissions of criminal wrongdoing,” the U.S. Attorney’s Office for the Southern District of California said after the settlement was reached.
Meanwhile, a complaint filed by the Nevada Gaming Control Board in August accused Resorts World of conducting business with illegal bookmakers.
One of the bookmakers that was named was Mathew Bowyer, who took thousands of sports bets from Shohei Ohtani’s former interpreter, Ippei Mizuhara.
NY gaming preparing for change
The cases are of particular interest since both gaming entities are already deep in their pursuit of the casino licenses.
Wynn joined forces with Related Companies, owned by Stephen Ross, who also owns the Miami Dolphins, to create a $12 billion complex in Hudson Yards.
Resorts World, owned by Malaysian company Genting Group, has plans for a $5 billion project that would remake the Aqueduct Racetrack in Queens with a casino, hotel rooms, and a 7,000-seat theater.
The company appeared to distance itself from the scandals by moving on from two high-level executives last week.
Resorts World New York City, which has operated a licensed slot parlor at Aqueduct since 2011, also said that its Vegas operations do not interfere with what happens in the Big Apple.
“There is absolutely no overlap between executives at one company or the other, as such one has no say on what the other does,” a Resorts World New York City spokesperson said in a statement.
O’Dwyer is not ready to remove either entity from the bidding process but said that the commission needs to ensure they operate with the “utmost integrity.”
