In a discussion that lasted less than an hour, the Nevada Gaming Commission March 27 finalized a $10.5 million fine for Resorts World Las Vegas (RWLV) over historic anti-money laundering (AML) violations, per iGB.
The approval was unanimous with a 4-0 vote, with Commissioner Abbi Silver recusing herself from the matter. She cited a longstanding relationship with Scott Sibella, former RWLV president. Sibella last May was sentenced to a year of probation and later had his Nevada gaming licence revoked for AML violations during his tenure at the MGM Grand.
RWLV’s fine represents the second-largest penalty ever for a Nevada gaming company. The state legalized casino gaming in 1931.
Wynn Resorts still holds the record for its $20 million fine from 2019, which stemmed from the company’s failure to address sexual assault allegations against founder Steve Wynn. Additionally, Wynn himself also later paid a $10 million settlement related to the matter.
Given that RWLV’s failures were directly related to gaming operations, there was some belief that its penalty could match or exceed Wynn’s. But it was not to be, and commissioners had few questions or comments before approving the fine.
The lone voice to comment on the matter at length was Commissioner Brian Krolicki. He called the scandal “a profound teachable moment for the industry” and acknowledged the severity of the violations. He also expressed a desire to move on and put an end to the saga, as did his fellow commissioners.
“Oh my goodness, the reading of the complaints, it’s breathtaking,” he said. However, Krolicki asserted he would “yield to the wisdom of the people who negotiated this,” alluding to the Nevada Gaming Control Board (NGCB). Nevada is unique in that it has a two-tier regulatory structure, with the control board reporting to the commission.
“I believe this is a wonderful fix and a new pivot for Resorts World,” Krolicki said. “I also believe this is a clarion call up and down that street [Las Vegas Strip] that these rules are to be adhered to perfectly.”
In some ways, the approved settlement is a positive for RWLV in that it offers closure. However, the casino still faces an uphill climb, both financially and reputationally. On March 26, RWLV announced it had laid off dozens of full-time employees.
“To best position the company, we have made the difficult decision to restructure a portion of our operations by less than 50 full-time team members,” the casino said in a statement. “We appreciate the contributions all affected team members have made. This decision is part of our ongoing efforts to optimize efficiency and maximize the exceptional experience we seek to deliver to our guests.”
