Resorts World Settles with Nevada Gaming Board for $10.5M
Resorts World Proposes a $10.5 million Settlement to Address Alleged Money Laundering Compliance Shortcomings with NGCB
In a move to put an end to the allegations of anti-money laundering compliance failures, Resorts World Las Vegas, a subsidiary of Genting Holdings, has proposed a settlement of $10.5 million to the Nevada Gaming Control Board (NGCB). This settlement aims to appease the 10-count, 27-page complaint filed by the NGCB in August, which detailed numerous instances of non-compliance.
The settlement, which Genting and five other sub-brands under Resorts World Las Vegas propose, amends the original 12-count, 31-page complaint. This action comes after the NGCB extended the deadline for Resorts World to respond to the complaint to December 9.
Through a communicated email, Resorts World has stated that "a settlement is pending," expressing optimism for the Nevada Gaming Commission's consideration and eventual resolution of the matter.
The NGCB's initial complaint accused Resorts World of fostering an environment akin to a criminal underground, welcoming patrons with "ties to organized crime." However, the proposed settlement agreement omits any references to organized crime.
The agreed-upon fine of $10.5 million, if approved by the Nevada Gaming Commission, would represent the second-highest fine ever assessed in Nevada. The Commission is set to convene in Las Vegas next week to discuss the matter. In addition to the financial penalty, Resorts World will be required to regularly report Anti-Money Laundering (AML) activities and preserve AML training records for five years.
Post-Settlement Changes
Since the filing of the complaint, Genting has made significant efforts to address internal issues. In February, Resorts World Las Vegas appointed former Nevada Governor Brian Sandoval to its executive board to help rebuild corporate credibility following the controversial dismissal of its ex-President and COO, Scott Sibella. The Commission revoked Sibella's Nevada gaming license for five years in December.
Interestingly, despite not being named in the NGCB's complaint, Sibella issued a statement to the press, suggesting that some of the named illegal bookmakers had previously gambled at various major casinos in Las Vegas, including Resorts World. Sibella questioned whether these casinos would also be under investigation.
Enrichment Data:
- Current Status of the $10.5m Settlement: The settlement has been seen as a positive step for Genting Malaysia in its bid for a downstate casino license.
- Additional Requirements for Resorts World Las Vegas: Following the settlement, Resorts World Las Vegas has undertaken several changes to strengthen its anti-money laundering practices, including leadership changes, the hiring of a Chief Compliance Officer, the establishment of a Gaming Regulatory Compliance Committee, and a focus on cost discipline and targeted marketing.
- Reportedly, Genting Holdings, the parent company of Resorts World Las Vegas, has been assessed a potential casino-and-gambling fine of $10.5 million by the Nevada Gaming Control Board (NGCB) following allegations of anti-money laundering compliance failures.
- In addition to the financial penalty, Resorts World Las Vegas will reportedly be required to regularly report Anti-Money Laundering (AML) activities and preserve AML training records for five years, as part of the settlement agreement with the NGCB.
- The settlement, if approved by the Nevada Gaming Commission, could potentially enable Genting Malaysia to strengthen its position in its bid for a downstate casino license, given the positive step it represents in addressing anti-money laundering concerns.
