Resorts World employees allowed Mathew Bowyer to bet at the casino for more than 18 months despite some acknowledging that he was an illegal bookmaker. The casino’s anti-money laundering committee met at least four times to discuss his status and took no action, despite concerns.
The NGCB filed a 31-page complaint detailing multiple felons who were also allowed to gamble at Resorts World. The casino resort could be subject to tens of millions of dollars in fines and other disciplinary action.
The complaint is the result of months of investigation by the NGCB, and it is another thread that ties together multiple federal cases being played out in two California US District courthouses. It may also be a precursor to a federal investigation or federal charges against Resorts World.
“The NGCB investigation revealed acceptance among Resorts World executives of a culture where information of suspicious or illegal activity is, at a minimum, negligently disregarded or, at worst, willfully ignored for financial gain,” Nevada regulators wrote.
Resorts World is owned by the Malaysian-based Genting Group. The company has a digital sports betting platform and a racino in New York and is bidding for one of three downstate casino licences there. Besides the Las Vegas and New York properties, it owns and operates gambling venues in the UK, Caribbean, China, Malaysia, the Philippines and Singapore. Any fines or disciplinary action in Las Vegas could reverberate around the world.
RW allowed two gambling felons to gamble on credit
California illegal bookie Bowyer is named in the complaint. Resorts World staff also allowed two convicted felons, Edwin Ting and Chad Iwamoto, to gamble on credit. According to the complaint, Ting was sentenced in 2014 as part of a gambling ring that laundered more than $100m. Iwamoto was also sentenced in 2014 on felony charges for participating in an illegal poker ring in Hawaii.
Bowyer’s wife, Nicole, is also named in the complaint and there is a separate disciplinary complaint in her name. According to the complaint, Resorts World employees “knew or should have known” by 22 July 2022 that Nicole Bowyer was the illegal bookmaker’s wife. Despite that, the casino contracted with Nicole Bowyer to be an “independent agent.” She acted as her husband’s casino host. As such, she earned more than $650,000 in commissions and gambled on credit at Resorts World.
According to an NGCB press release, Nicole Bowyer is not cooperating with the investigation.
Sibella the link?
Former Resorts World president Scott Sibella is not named in the complaint, but is likely the link between Bowyer and Resorts World. Sibella in May was sentenced to one year of probation for his role in laundering money for known illegal bookmaker Wayne Nix. Sibella was an executive at MGM Grand when he failed to file a suspicious activity report for a marker for Nix. He moved on to Resorts World in 2019. That company fired him last fall when a federal investigation into his actions got underway. In early May, the NGCB filed a three-count complaint against Sibella.
According to his federal plea agreement, Sibella “was aware that Nix engaged in illegal bookmaking” beginning in August 2017 or earlier. But he continued to allow Nix to gamble for fear of losing his action.
Sibella said he “heard that Nix was in the booking business” according to the plea. And Sibella “couldn’t figure out how he had all the money he gambled with”. But Sibella said he didn’t want to acknowledge the situation.
Neither Sibella nor Nix are named in the NGCB complaint, but it seems clear the cases are intertwined. At the very least, Sibella’s decision to look the other way with Nix at MGM Grand may have extended to Bowyer at Resorts World. And federal complaints reveal that both Nix and Bowyer used Costa-Rican offshore sportsbooks in their businesses. In Bowyer’s plea agreement, “Casino A” located in Las Vegas is referred to, but not named.
RW staff ignored obvious signs
Six of the charges in the NGCB complaint are related to Mathew Bowyer and his gambling at Resorts World. The clear theme is that Resorts World staff, including its anti-money laundering (AML) committee, had doubts about Bowyer’s source of funds for betting, but did not act. In fact, in some cases, the casino extended more credit and benefits to keep Bowyer coming back.
According to the complaint, the Resorts World AML committee met at least four times to discuss Bowyer. Through all of the meetings, the AML committee was never able to determine a source of funds for Bowyer’s betting.
Despite that, the casino extended Bowyer credit, and then increased the credit line. Bowyer bet millions, effectively laundering money from his illegal bookmaking business.
Bowyer had a massive business
Former Shohei Ohtani translator Ippei Mizuhara wagered with Bowyer. Mizuhara lost tens of millions of dollars and stole $17m from Ohtani to pay down gambling debt. He pleaded guilty to multiple federal charges in May and faces up to 33 years in prison. Mizuhara is scheduled to be sentenced in October.
Bowyer, who, according to federal court documents had more than 700 clients and used offshore betting platforms in his business, pleaded guilty to three federal counts in California 9 August. Among the charges are running an illegal sportsbook. Wagering is illegal in California, and running an unregulated business is also illegal. Bowyer faces up to 18 years in prison and is set to be sentenced in February 2025.
The NGCB complaint details Bowyer’s relationship with Resorts World, which began 18 December 2021. At that time, Bowyer applied for “a $5,000 credit application, later converted to a $1 million front-money application.” Four days later, he was classified as a “medium risk,” according to the complaint, though Resorts World wrote was “unable to determine SOF. Applicant owns his home but no other assets.”
Bowyer first visited Resorts World in February 2022. He was allowed to wager on credit, though the casino had not “established his source of funds.” From there, Resorts World then entered into the independent agent agreement (14 April 2022) with Nicole Bowyer. The AML committee repeatedly revisited Bowyer’s situation, but took no action.
RW should have banned Bowyer from the beginning
The complaint shows that Bowyer wagered $5,178,804 in June 2022, with an average wager of $31,815. At that time, the casino cage director stated Bowyer “is a known ‘bookie’ and is using his spouse’s Independent Host business as a cover.”
The NGCB wrote that the AML committee failed to do its job. It was mandated to recommend that the casino “ban, bar, or otherwise restrict Bowyer.” It did not, and the pattern repeated itself over and over. At a 21 March 2023 meeting, “Executive A” asked that “the word ‘bookie’ be stricken from the January 2023 agenda as that was one person’s opinion and there was no evidence of such behavior.”
On 1 October 2023, the complaint says, Bowyer told his casino host that he “runs a book” and asked the host to refer clients. This is consistent with information in federal court documents filed in California. The host allegedly felt “uneasy” referring clients, but did so anyway. The host did not report the information to superiors. Bowyer also made a second host aware that he was an illegal bookie. That host also did not share the information.
Bowyer was ultimately banned from Resorts World in early October 2023, which is around the time it became public that a federal investigation was underway. At that point, Bowyer had also closed down his illegal bookmaking operation, according to federal documents.
Original article: https://igamingbusiness.com/casino/resorts-world-california-betting-scandal/
