A $10.5m settlement for Resorts World following an investigation into its ties to illegal bookmakers may have been the “easy route” for the Nevada Gaming Control Board (NGCB), according to the latest episode of the iGaming Daily.
The regulator filed a complaint against the Resorts World after its enforcement team found evidence of the casino failing to meet the standards of the regulator’s AML protocols.
It stemmed from the conduct of the illegal bookmaker Matthew Bowyer, who, according to the complaint, was allowed to wager at Resorts World’s Las Vegas property without the casino verifying his source of funds and reportedly lost $7.9m wagering at various casinos.
Additionally, the NGCB’s settlement also mentions illegal gambling activity at Resorts World by Damien LeForbes, a professional poker player who also operated an illegal gambling scheme and lost $10m in just over a year.
Taking the easy route?
Jessica Welman, Managing Editor of SBC, said: “If you’re going to have to pay back what you reaped from your failings, it doesn’t feel like that much of a punishment to me. It might even be that they still profited from the fact they let these people come and gamble at their property.
“There’s got to have been plenty of discussions between lawyers and regulators about what this fine was going to be, and I can’t help but feel like they might have taken the easy route.”
In a hearing of the Nevada Gaming Commission, the commission voted 4-0 to accept the settlement. Commissioner Rosa Solis-Rainey admitted she believes the $10.5m figure is “on the low side” but was willing to support it given the “tremendous expenses the company is facing, has faced, and will continue to face in implementing corrective measures”.
Resorts World attorney Erica Okerberg, who acknowledged that “things went wrong” during the period in question, outlined the changes made by Resorts World, including the introduction of the role of Chief Compliance Officer and significant changes at an executive level.
“The company has worked tirelessly, they’ve devoted significant time and resources, including millions of dollars, to not only address the issues but to build a better company,” she added.
“We believe that the team and the company before you today is a different company than it was before. It’s Resorts World 2.0 if you will.”
The proposed settlement would make the penalty the second-largest fine in Nevada gaming history, only surpassed by the $20m fine issued by the NCGB to Wynn Resorts for failing to investigate claims of sexual misconduct against its founder, Steven Wynn.
Commissioner Brian Krolicki described the “breathtaking” complaint and subsequent punishment against Resorts World as a “teachable moment” for both the company and the industry as a whole.
He said: “The size of the penalty and reputational risk is a clarion call for the Strip to adhere to perfectly. Because if not, there are severe ramifications. I hope all the lessons we’ve learned will carry forward for many years to come. I never want to do this again.”
Could it have been more?
Welman, during the episode, also questioned the possibility of punishments going beyond fines and leading to a loss of license for Resorts World. However, given how integral casinos are to the Las Vegas economy and their status as an employer, she noted that a loss of license was never likely a realistic possibility.
During the hearing, Solis-Rainey stated that the investment Resorts World has made into the Las Vegas community and the “great employment” it provides were factors she considered when deciding if the settlement was appropriate.
Welman said: “[When the story first broke] we actually questioned if this is what you have to do to lose a licence? Resorts World is this new, huge project that employs thousands of Nevadans. So if you revoke that license, you are putting thousands of people out of a job,
“But that’s what I kind of hate about it, is that the threat of losing your license is just never really on the table. You would have to really do something awful to even come close to having your licence in peril.”
