Resorts World granted extension in NGCB investigation
Resorts World Las Vegas Receives Extension to Address Disciplinary Complaint
Resorts World Las Vegas has been granted until December 9 to respond to a 12-count disciplinary complaint filed by the Nevada Gaming Control Board (NGCB) in August. This extension was highlighted in the recent Q3 earnings report from the casino’s parent company, Genting Berhad. The NGCB confirmed to the Las Vegas Review-Journal on December 2 that Resorts World had formally requested and received this extension.
The initial complaint, submitted on August 15, spans 31 pages and outlines serious allegations of misconduct at the Strip property. The NGCB claims that the facility facilitated an environment where “individuals with suspected and actual ties to illegal bookmaking,” along with illegal gambling and organized crime, were permitted, leading to an “overall lack of control.”
The NGCB has urged the Nevada Gaming Commission (NGC) to take formal punitive action against the casino. In Nevada’s regulatory framework, the NGCB serves as the prosecutor, while the NGC acts as the judge and jury concerning regulatory issues. Possible disciplinary actions could range from license suspensions and revocations to substantial fines or appointing state oversight over the property.
Resorts World at the Center of Illegal Bookmaking Controversy
Resorts World is currently entangled in a scandal involving illegal bookmaking that has sent shockwaves through the gambling sector. One of the pivotal figures implicated in the NGCB complaint is Mathew Bowyer, a California-based bookmaker who reportedly wagered millions at Resorts World since its opening in 2021.
Bowyer served as the bookmaker for Ippei Mizuhara, the former Japanese-language interpreter for Major League Baseball superstar Shohei Ohtani. Mizuhara is facing sentencing for embezzling approximately $17 million (£13.4 million/€16.2 million) from Ohtani to settle debts owed to Bowyer. Resorts World has emerged as one of the casinos where Bowyer and his associates allegedly laundered money, alongside California’s Pechanga Resort Casino. Notably, Bowyer’s wife, Nicole, was employed by Resorts World as his personal host.
During the same timeframe, Scott Sibella held the position of president and COO of Resorts World but was terminated in September for violating company policies, with minimal details disclosed. In May, Sibella pleaded guilty to anti-money laundering (AML) violations from his tenure at MGM Grand, where he allegedly allowed another notorious illegal bookmaker, Wayne Nix, to settle a $120,000 marker in cash. He received a sentence of one year of probation and a fine of $9,500. The NGCB is reportedly conducting a separate investigation into Sibella, although specific information has not been revealed.
Challenging Timing Following Q3 Financial Performance
The timing of the NGCB’s complaint extension is particularly challenging for a casino that has just reported its worst quarterly performance in two years. Resorts World Las Vegas reported a Q3 revenue of $177 million, reflecting an 18% decrease from Q2’s $218 million. Furthermore, EBITDA witnessed a staggering decline, plummeting 68% from $50 million to just $16 million.
In its earnings report, the company cited two primary factors for this downturn: an “abnormally hot summer in Las Vegas” and “economic uncertainty in an election year.” The report underscored the casino’s commitment to pursuing growth opportunities, including:
- Expanding its database for targeted casino and resort marketing to attract high-net-worth clients and foster repeat visitation.
- Collaborating with both established and new convention groups to enhance high-margin group business.
- Investing in innovative dining concepts, entertainment, and retail offerings to optimize operational leverage.
As Resorts World navigates this turbulent period, the implications of the NGCB’s findings will undoubtedly shape its path forward within the competitive landscape of the gambling industry.
