Resorts World Las Vegas Faces Serious Anti-Money Laundering Claims

Resorts World Las Vegas, a landmark establishment on the Sin City Strip, has all eyes back on it for the wrong reasons. The Nevada Gaming Control Board (NGCB) continues pursuing a 12-count disciplinary complaint against the property.

Initially tabled in August, the claims cited the resort's failure to comply with anti-money laundering (AML) laws and enabling bookmakers with criminal ties to gamble. The Board granted Resorts World a grace period until December 9^th, 2024, to respond to the allegations.

A Den of Illicit Activities

In the 31-page complaint, the NGCB details Resorts World as an out-of-control venue encouraging money laundering and other criminal activities. The claims include welcoming and urging spending by individuals with ties to illicit gambling and organized crime.

Scott Sibella, former Resorts World President from 2019 to 2023, is among the figures highlighted in the case. During his tenure, Sibella was accused of mismanagement of the resort. He also pleaded guilty to federal Bank Secrecy Act (BSA) accusations) while working at MGM Grand. The NGCB focused on this history in their investigations.

The complaint also pointed to Mathew Bowyer, an infamous bookmaker with criminal ties. According to the Board, Bowyer was welcomed and allowed to gamble at the property for almost two years without proper scrutiny despite pleading guilty to various federal charges linked to illicit betting operations.

Potential Repercussions

While nothing is set in stone, the NGCB encourages the Nevada Gaming Commission to penalize Resorts World for every violation. The Board also recommends putting the resort under supervision and, if necessary, revoking its license. However, the Board recognizes that the property is a key player in the Las Vegas economy, making massive contributions to Nevada's tax revenue and workforce.

Despite the intensity of the accusations, Resorts World insists on its ability to prove regulatory compliance. The resort released a statement citing its intent to contest the claims. Nevertheless, the NGCB continues to pursue its investigation into Sibella.

Broader Industry Implications

The accusations against Resorts World have reignited concerns about the Nevada regulatory authorities' ability to ensure AML compliance of its licensees. The federal government oversees AML enforcement after Commission Regulation 6A was repealed in 2007 due to its complexity. This new scandal has rekindled arguments that state-level oversight is necessary as property self-regulation results in significant lapses.