Resorts World Las Vegas: A $10.5M Lesson in Money Laundering

In the glittering world of Las Vegas, where fortunes are made and lost in the blink of an eye, Resorts World Las Vegas has found itself in the spotlight for all the wrong reasons. The high-end casino, which opened its doors in June 2021 with a staggering $4.2 billion price tag, is now facing a $10.5 million fine for severe anti-money laundering (AML) violations. This penalty, recommended by the Nevada Gaming Control Board (NGCB), is a stark reminder of the consequences of negligence in the gaming industry.

The investigation, which began with a complaint filed in August 2023, uncovered a pattern of negligence and disregard for regulatory guidelines at Resorts World. The casino allowed two individuals with ties to illegal bookmaking to gamble freely at their property, directly violating Nevada’s stringent AML laws. Mathew Bowyer, one of the key figures involved, was implicated in operating an illegal gambling business and money laundering. His gambling ring serviced approximately 700 clients, handling sports wagers worth approximately $325 million. The illegal bets placed at Resorts World contributed to the laundering of substantial amounts of illicit money, which was funneled through the casino’s operations.



The case of Resorts World Las Vegas is not an isolated incident. It is part of a broader trend of increased scrutiny and enforcement in the gaming industry. The IRS settled its case with MGM Grand, which paid a $7.45 million fine for similar AML violations. This trend suggests that regulatory authorities are becoming more vigilant in their efforts to combat money laundering and other financial crimes in the gaming sector. As a result, casinos must prioritize compliance and invest in robust AML programs to avoid facing similar penalties.

The implications of this fine are far-reaching. It sets a precedent for future regulatory actions, indicating that the NGCB will not hesitate to impose substantial penalties on casinos that fail to adhere to AML guidelines. This sends a clear message to the industry that compliance with regulatory standards is non-negotiable. The fine also underscores the need for casinos to implement robust AML programs, including customer due diligence, transaction monitoring, and reporting mechanisms.

Resorts World Las Vegas has implemented several specific measures and changes in leadership to address the AML violations. The casino has agreed to make changes to its leadership and implement stricter protocols for preventing money laundering as part of the settlement agreement. This includes the creation of a new board of directors, which includes former MGM Resorts International CEO Jim Murren, former GCB chairman A.G. Burnett, and former Gov. Brian Sandoval, who also served as chairman of the Nevada Gaming Commission, and is now president of the University of Nevada Reno. Additionally, the settlement requires that Resorts World maintain its anti-money laundering (AML) program and review it annually, retain AML records and AML committee meeting minutes for at least five years, assign an AML training module to all independent agents within 60 days, conduct an internal audit of AML compliance in two years, report to the board chair within three days any notice of criminal investigation or disciplinary action, and obtain a “customized gaming compliance program” from the UNLV International Center for Gaming Regulation. These measures are aimed at enhancing the casino's compliance with AML regulations and preventing future incidents.



The effectiveness of these measures in preventing future incidents remains to be seen, as the casino has yet to implement them fully and the settlement is still subject to approval by the Nevada Gaming Commission. However, the fine against Resorts World Las Vegas serves as a stark reminder of the consequences of non-compliance and the importance of maintaining high standards of regulatory adherence in the gaming industry. The case of Resorts World Las Vegas is a cautionary tale for the gaming industry, highlighting the need for robust AML programs and strict adherence to regulatory guidelines. As the NGCB Chairman Kirk Hendrick stated, "The Nevada Gaming Control Board is dedicated to protecting the State of Nevada, its citizens, and visitors, as well as the vital gaming industry. We will thoroughly investigate all suspected violations of Nevada's gaming laws and regulations, and appropriate disciplinary action will be taken as warranted."