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Resorts World Las Vegas Under Fire for Alleged AML Failures and Criminal Ties

Nevada Regulators Pursue Serious Allegations
Resorts World Las Vegas, one of the Strip’s premier casinos, is embroiled in controversy as Nevada gaming regulators push forward with a 12-count disciplinary complaint. The Nevada Gaming Control Board (NGCB) accuses the property of severe anti-money laundering (AML) compliance failures and enabling individuals linked to illegal gambling activities.

The casino has until December 9, 2024, to respond to the allegations, which stem from an investigation initiated in August. If found guilty, Resorts World could face heavy fines, sanctions, or even the suspension of its gaming license.

Regulatory Failures Highlighted
The NGCB’s detailed 31-page complaint paints a troubling picture of Resorts World’s internal controls. The board alleges the casino created conditions conducive to laundering funds and supporting organized crime.

Among the charges is the claim that the casino failed to scrutinize financial transactions esubstation.com fitnessfoodonline.com furnitureskart.com indosiang.com listingtrips.com from patrons with known criminal ties. The NGCB alleges these lapses reflect a systemic failure to enforce strict compliance measures required by federal and state gaming laws.

Leadership Under Scrutiny
Former Resorts World President Scott Sibella, who left the company in September 2023, has come under intense scrutiny. Sibella’s past includes a guilty plea for violating the federal Bank Secrecy Act (BSA) during his time at MGM Grand, where he failed to report suspicious financial transactions. His leadership at Resorts World is now being examined as a potential contributing factor to the casino’s alleged regulatory breaches.

Alleged Links to Organized Crime Figures
The complaint singles out several individuals connected to illegal gambling activities who were allegedly allowed to operate at Resorts World without oversight.

One key figure is Mathew Bowyer, identified as an illegal bookmaker who frequented the property for nearly two years. Bowyer’s operations were linked to a high-profile case involving Ippei Mizuhara, a former interpreter for MLB star Shohei Ohtani. Mizuhara embezzled $17 million from Ohtani to cover gambling debts, some of which were tied to Bowyer.

Additional accusations involve dealings with other convicted offenders, including Edwin Ting and Chad Iwamoto, further underscoring what the NGCB describes as a failure to enforce adequate due diligence.

Renewed Calls for AML Oversight
The Resorts World case has reignited concerns over Nevada’s AML oversight. While the federal government enforces the BSA, the state has previously implemented its own measures, such as Commission Regulation 6A, which was repealed in 2007. Critics argue the state must reinstate robust regulations to prevent similar lapses in the future.

The NGCB’s investigation revealed significant gaps in Resorts World’s practices, including ignoring red flags tied to suspicious transactions and failing to verify gamblers’ sources of funds. These shortcomings, the board claims, undermine the integrity of Nevada’s gaming industry.

Potential Consequences and Broader Implications
The NGCB has recommended hefty fines for each alleged violation and proposed oversight measures, including appointing a supervisor or even revoking the casino’s license. However, the economic impact of such actions weighs heavily, given the property’s contribution to state tax revenue and its employment of thousands of workers.

Resorts World has vowed to challenge the accusations, maintaining that it adheres to regulatory standards. In a statement reported by the Las Vegas Review-Journal, the casino expressed confidence in its ability to refute the claims and demonstrate compliance.

The outcome of this case could set a precedent for AML enforcement in Nevada, shaping how regulators and operators address financial compliance and criminal ties in the gaming industry.

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