The extension was first noted last week in the Q3 earnings report from Resorts World’s parent company Genting Berhad. The NGCB confirmed to the Las Vegas Review-Journal yesterday (2 December) that the casino applied for and was granted the extension.
Originally filed 15 August, the 31-page complaint lays out serious misconduct on behalf of the Strip property. The board alleged that “individuals with suspected and actual ties to illegal bookmaking,” illegal gambling and organized crime were welcomed at Resorts World, which resulted in an “overall lack of control.”
The NGCB has requested the Nevada Gaming Commission (NGC) to take formal action against the casino. In Nevada, the NGCB acts as the prosecutor and NGC is the judge and jury with regulatory matters. Potential disciplinary actions include licence suspensions or revocations, fines, or placing the property under state oversight.
Resorts World linked to illegal bookmaking scandal
Resorts World is embroiled in an illegal bookmaking scandal that has rocked the industry. One of the individuals who inspired the NGCB complaint was Mathew Bowyer, a California-based bookie who gambled millions at Resorts World since it opened in 2021.
Bowyer was the bookie for Ippei Mizuhara, the former Japanese-language interpreter for Shohei Ohtani. Mizuhara is awaiting sentencing for stealing some $17 million (£13.4 million/€16.2 million) from the MLB superstar to pay debts owed to Bowyer. Resorts World was one of the casinos where Bowyer and his associates would launder money, with the other being California’s Pechanga Resort Casino. Bowyer’s wife, Nicole, was also hired by Resorts World to be his personal host.
In addition, Scott Sibella served as president and COO of Resorts World during that span. He was abruptly fired last September for violating company policy, with few other details. Then in May, he pleaded guilty to anti-money laundering (AML) violations stemming from his time as president of MGM Grand. He was sentenced to one year of probation and fined $9,500. While at MGM Grand he allegedly allowed Wayne Nix, another well-known illegal bookie, to pay a $120,000 marker in cash.
The NGCB is said to be conducting a separate investigation on Sibella, but no details have been disclosed.
Bad timing after Q3 results
The timing of the response is not ideal for a casino that just had its worst quarter in two years. Its Q3 revenue of $177 million was an 18% decrease from Q2’s mark of $218 million. EBITDA dropped even more–down 68% from $50 million to $16 million.
In the report, the company attributed this to this two factors. The first was “an abnormally hot summer in Las Vegas,” and the second was “economic uncertainty in an election year.”
“RWLV remains focused on growth opportunities, including ongoing efforts to expand RWLV’s database for casino and resort marketing to yield high net worth customers and drive repeat visitation, grow with established and new convention groups to deliver high margin group business and invest in new dining concepts, entertainment and retail offerings to drive operating leverage,” the company said in its report.
Original article: https://igamingbusiness.com/casino/land-based-casino-regulation/resorts-world-extension-nevada/
