Vegas Strip Casinos on Notice: AML Compliance is Crucial
Nevada Agrees to $10.5 Million AML Settlement with Resort World on Vegas Strip, Issues Caution
In a significant move for the gambling industry, Nevada's gaming commission has sent a clear message to Las Vegas Strip casinos, articulating the importance of strict Anti-Money Laundering (AML) compliance and operational accountability. This stern warning was delivered through the $10.5 million settlement with Resorts World Las Vegas (RWLV).
The Nevada Gaming Commission (NGC) unanimously approved the settlement proposal, putting an end to the AML complaint against RWLV, a subsidiary of Genting Holdings, on Thursday, in a 4-0 vote. The decision came despite the commissioners' reservations about the appropriateness of the penalty, acknowledging the severe nature of the AML complaints but ultimately moving forward in letting Genting off the hook.
During the 40-minute hearing, Commissioner Brian Krolicki openly questioned whether the settlement was too low or too high but emphasized that such violations warrant "severe ramifications" if not adhered to closely. Commissioner Rosa Solis-Rainey thought the $10.5 million was "on the low side," but she ultimately supported the motion to accept the settlement. Solis-Rainey agreed on the figure "given the tremendous expenses the company is facing, has faced, and will continue to face in implementing corrective measures."
Resorts World attorney Erica Okerberg stated in the hearing that her client appreciated the significance of the mistakes made and committed to devoting "significant time and resources, including millions of dollars, to build a better company."
To demonstrate its commitment to rectifying past organizational blunders, RWLV has made several high-profile moves. In February, the Vegas casino resort appointed former Nevada Governor Brian Sandoval to its executive board and appointed Alex Dixon as CEO, and Carlos Castro as COO and CFO. The commissioners acknowledged that RWLV has taken steps to get its AML house in order. Krolicki summarized the situation, stating, "I do believe a lot of good will come out of this bad. We see new faces, procedures, and compliance. We now have a dream team of governance here in the front row."
The settlement serves as a benchmark for regulatory expectations, urging Strip operators to prioritize AML compliance over short-term gains. The NGC's decision highlights the zero tolerance for AML failures. Negligence in reporting suspicious transactions or interacting with illegal gamblers could incur severe penalties. The NGC explicitly linked RWLV’s failures to money laundering risks, requiring an overhaul of leadership and AML protocols.
Moreover, the NGC stressed that federal actions against casinos could trigger additional state penalties, creating a multi-layered accountability system. This aims to deter collusion with illegal operators, as seen in cases involving bookmakers like Wayne Nix (mentioned in the parallel MGM case). In essence, this warning serves as a "clarion call" for the Strip casinos to "adhere to [regulations] perfectly" or face similar consequences.
- Despite the reservations about the proportionality of the penalty, Commissioner Rosa Solis-Rainey supported the motion to accept the $10.5 million settlement due to the substantial expenses Genting Holdings is incurring in addressing AML issues.
- With the settlement, the Nevada Gaming Commission (NGC) is making it clear that similar transgressions in AML compliance will result in severe ramifications for Las Vegas Strip casinos.
- RWLV has been implementing various corrective measures to rectify its past missteps, including appointing Brian Sandoval as an executive board member, Alex Dixon as CEO, and Carlos Castro as COO and CFO.
- In the face of this settlement and its consequences, Strip casinos are encouraged to prioritize AML compliance not just for the sake of regulations, but to avoid the risks associated with money laundering, sports-betting, and potential collaboration with illegal operators.
