On May 15, the Nevada Gaming Control Board (NGCB) announced that Wynn had agreed to pay a $5.5 million fine after the regulator had filed a complaint on the same day. The agreement is pending approval from the Nevada Gaming Commission on May 22.

Wynn Las Vegas Fine Related To a Federal Probe of AML Failures

The proposed Stipulation for Settlement between the regulator and Wynn comes after NGCB filed a complaint for disciplinary action on May 15. 

The complaint alleges that the operator used improper business practices, including “unregistered money transmitting businesses, facilitating international monetary transactions, allowing proxy betting, and other prohibited monetary transactions.”

According to NGCB, former Wynn employees allowed international patrons to move money for gambling and place wagers on behalf of others, violating the company’s AML protocols.

The Nevada regulator’s complaint concerns Wynn’s September 2024 Non-Prosecution Agreement with the US Attorney’s Office for the Southern District of California. In that agreement, the company agreed to forfeit $130 million to settle a federal investigation into AML violations.

After resolving the federal case, NGCB opened a separate investigation, to which Wynn fully cooperated. In addition to the $5.5 million fine, Wynn will implement enhancements to its AML procedures and provide additional employee training.

MGM and RWLV Also Fined Over Similar Lapses

Wynn’s fine marks Nevada’s third high-profile AML enforcement case this year.

In March, RWLV agreed to pay a $10.5 million fine, the second-largest in Nevada gaming history. The Nevada regulator imposed a substantial penalty for regulatory violations related to engaging with illicit bookmakers, including Damien LeForbes and Mathew Bowyer.

Bowyer ran an illegal operation with over 700 clients and had ties to MLB star Shohei Ohtani’s disgraced former interpreter. Bowyer used the illicit funds from his operations to gamble at RWLV. He lost over $8 million, including $1.2 million in two months.

NGCB accused the company’s former President, Scott Sibella, and other executives of negligence and failing to report Bowyer’s suspicious activities as part of AML protocols.

Bowyer was also connected to another fine imposed by the NGCB. In April, MGM Resorts International agreed to pay an $8.5 million fine for similar AML protocol failures. 

Like in the RWLV case, Bowyer used proceeds from his illegal operations to gamble at MGM properties on at least 300 occasions. Meanwhile, another illegal bookie, Wayne Nix, lost nearly $5 million at MGM properties.

The connection in both cases is Sibella. Before he became RWLV President, he was the President of MGM Grand Casino. In 2024, the former executive pleaded guilty to violating the Bank Secrecy Act. 

He received a one-year probation and a $9,500 fine. Later, Sibella agreed with Nevada regulators to surrender his gaming license, ending his casino industry career in the state.

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The settlement revolves around a complaint filed by the NGCB on 17 April involving the company’s failure to stop illegal gambling activities involving two bookmakers, Wayne Nix and Mathew Bowyer.

A previous Non-Prosecution Agreement between the US Attorney’s office for the Central District of California, MGM Grand, and The Cosmopolitan detailed Nix’s illicit activities. 

The Nevada investigation centred on the actions and failures of MGMRI’s employees concerning Nix and Bowyer. 

The NGCB investigation also uncovered MGMRI’s failures to enforce the Anti-Money Laundering (AML) program adequately. However, the Control Board noted that the MGMRI executives and employees cooperated during the extensive investigation.

MGMRI To Address AML Failures As Part Of Nevada Settlement

Despite the cooperation, the Stipulation includes an $8.5 million fine that MGMRI must pay to Nevada’s General Fund, along with additional specific conditions to be placed on MGMRI and the properties’ gaming licenses.

The settlement proposes several measures to remedy the issues identified with the company’s operations. Most of them focus on enhancing the AML program, with one step being additional training and increasing employee awareness of AML requirements.

The Nevada Gaming Commission (NGC) must approve the Stipulation before the settlement becomes legally binding. The NGC will likely decide at its next monthly meeting on 24 April 2025.

The two bookmakers are currently awaiting sentencing for federal charges involving illegal gambling and money laundering. 

Bowyer At The Center Of Another Controversy

MGM’s breaches come just weeks after the NGC levied the second-largest penalty in Nevada’s gaming history.

The settlement included a $10.5 million fine that Resorts World Las Vegas (RWLV) had to pay. Interestingly, the case against it also included Bowyer and his activities as an illegal bookmaker, alongside Damien LeForbes.

The Nevada Gaming Commission opted for a high penalty to deter similar incursions by other state casinos and resorts. 

However, the controversial bookmaker Bowyer, who ran an illegal gambling operation involving more than 700 clients, found himself at the center of the MGMRI controversy, as well.

The RWLV investigation found that Bowyer enjoyed numerous extended privileges beyond what Las Vegas casinos typically offer to their high rollers. These included his wife becoming his personal casino host, unchallenged exorbitant losses, and the use of private jets.

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Playgon, along with its affiliate Bitrate Productions, has been accused of producing live casino content with live dealers in Nevada without having the appropriate licensing to do so. 

Signed by the regulator’s Chairman Kirk Hendrick, the order suggests that Bitrate’s live-streamed games, such as Baccarat and Roulette, which are broadcast to casinos globally require appropriate licensing from the Nevada Gaming Commission. 

Bitrate has not secured the licensing deemed necessary by the NGCB, and Playgon actually outlined via legal counsel in 2016 that Bitrate’s services would not require a NGC licence due to being ‘for entertainment purposes only’. 

The NGCB has determined that Bitrate’s live casino services have expanded beyond social gaming, explaining the need for the cease and desist order.

The letter, dated July 18, demands that Playgon, Bitrate and all affiliated entities cease all unlicensed activity by 5pm on July 26. Failure to comply with the order may lead to criminal or civil action being taken by the regulator. 

Responding to the regulatory action, Hendrick affirmed: “The NGCB will take all necessary actions to enforce Nevada’s gaming laws and regulations.”

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With both approvals from the Nevada Gaming Control Board, the first approval permits Continent 8 to provide its services via a data centre site located in the Silver State. 

The second approval allows Continent 8 to provide its services to Nevada-licensed operations from its New Jersey site, meaning licensed operators and suppliers can utilise the company’s Atlantic City data centre to launch in Nevada and “benefit from zero-compromise connectivity, performance and latency for optimal user experiences”.

Nick Nally, Chief Revenue Officer at Continent 8 Technologies, stated: “Our bold and customer-centric approach has positioned us as the number one igaming infrastructure provider for operators and suppliers targeting the US market and adding Nevada to our growing network of states strengthens this position. 

“That we have also uniquely secured approvals to service Nevada customers from both in-state and out-of-state is further evidence of how we provide our customers with solutions they simply can’t get elsewhere. And this has only been possible because of our close relationship with regulators and the prowess of our infrastructure.”

Continent 8 is now live in 30 US states with “further launches in the pipeline”.

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According to the Nevada Gaming Control Board, statewide gaming revenue improved by 6.95 per cent year-over-year to $1.24bn (April 2023: $1.16bn).

Although this figure is down in comparison to March’s $1.29bn, it is a return to YoY growth for operations in the Silver State after undergoing a 1.65 per cent YoY decline the previous month.

For the fiscal year – July 1, 2023, to April 30, 2024 – Nevada revenue has risen by 4.67 per cent YoY to $13.2bn (2023: $12.6bn).

Operations on the Strip in April rose by 6.62 per cent in comparison to the same month last year to $666.1m (April 2023: $624.7m). For the fiscal year, revenue for the Strip rose by 6.52 per cent to $7.6bn (2023: $7.1bn).

Per vertical, the NGCB stated that slot machines revenue grew by 5.86 per cent YoY to $886.8m, with multi denomination and one cent generating $586.8m and $216.6m in revenue respectively.

Table, counter and card games revenue improved by 9.8 per cent YoY to $353.4m, with blackjack and baccarat producing $110.2m and $76.1m in revenue respectively.

Sports betting revenue declined by five per cent in comparison to the same period the previous year to $30.8m.

During the month, the NGCB noted that the state collected $70.3m in taxes, up 4.18 per cent in comparison to the $67.5m collected during the same period last year.

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$4.4bn

MGM Resorts International has reported record consolidated net revenues of $4.4bn for the first quarter of 2024, due to progress with MGM China and its Las Vegas operations.

The record figure represents an increase of 13 per cent year-over-year (Q1 2023: $3.9bn), driven by improvements at MGM China “from the continued ramp-up of operations after the removal of COVID-19 related entry restrictions in Macau in the prior year quarter”.

Casino operations generated $2.2bn during the quarter, an improvement on the $1.9bn earned during Q1 last year. Rooms generated $956.4m (2023: $848.5m), food and beverage produced $769.4m (2023: $722.1m), entertainment, retail and other stood at $404.4m (2023: $409.6m) and reimbursed costs was $12.2m (2023: $10.7m).

MGM Resorts’ net income came in at $217m, down from the $467m reported during Q1 2023 due to “a change in operating income, which was driven by a $398m gain on the disposition of Gold Strike Tunica in the prior year quarter, partially offset by the increase in net revenues in the current quarter”.

Consolidated adjusted EBITDAR at the end of the quarter was $1.2bn, diluted earnings per share were $0.67 (2023: $1.24) and adjusted diluted earnings per share were $0.74 (2023: $0.44). 

Net cash flow provided by (used in) operating, investing, and financing activities was $549m, ($108m), and ($629m), respectively, while free cash flow stood at $377m.

Bill Hornbuckle, CEO & President of MGM Resorts International, commented: “Our strategic growth plan to drive sustainable free cash flow from our resort operations, develop free cash flow by investing in international digital and luxury integrated resorts, and return capital to shareholders through share repurchases continued to develop in the first quarter of 2024. 

“We achieved record consolidated revenues in the first quarter. The January launch of our licence agreement with Marriott has surpassed our initial expectations with over 130,000 room nights booked and we expect the strategic relationship will be a growth driver this year.”

£150

The UKGC is set to implement widespread changes across the industry with ‘light touch’ affordability checks being triggered after a spend of £150 a month. 

With the intention of ‘boosting safety and choice for consumers’, the new measures are following a myriad of white paper consultations and will be implemented in four stages: August 2024, November 2024, January 2025 and February 2025.

In a bid to smooth the transition process as much as possible, these checks will initially come into force at £500 a month from 30 August 2024, before reducing to £150 a month from 28 February 2025.

Off the back of consultation feedback, the Commission will carry out a pilot to test the details of frictionless assessments in practice, working with credit reference agencies and gambling businesses to examine the potential consumer impact.  

The initial pilot period for these new measures will involve the biggest operators, in order to enable the UKGC to gain the deepest possible understanding over the impact of regulations. 

Furthermore, new regulations will also impact game design – reducing speed and intensity of online slots, as the UKGC underlines it is seeking to make them ‘fairer and increasing consumer understanding about game play’.

Andrew Rhodes, Gambling Commission CEO, commented: “As a gambling regulator it’s vital that the introduction of new rules is based on evidence and takes into account the views of consumers and other interested parties.

“We have listened to the views expressed in our engagement and in the consultation responses, and we have made changes while still ensuring that we deliver meaningful protections.”

3.3%

Bally’s Corporation has reported a 3.3 per cent uptick in revenue during the first quarter of 2024, with growth occurring across its Casino & Resorts and North America Interactive segments.

While International Interactive’s revenue declined year-over-year, CEO Robeson Reeves noted that gains were made in the UK ahead of the launch of its online sports betting offering in the market later this year.

Publishing its Q1 results, Bally’s declared a company-wide consolidated revenue of $618.5m, up 3.3 per cent YoY (Q1 2023: $598.7m), driven by Casino & Resorts and North America Interactive segments.

Gaming revenue came in at $516.1m (2023: $486.9m) while non-gaming revenue was $102.4m (2023: $111.8m).

The operator reported a net loss for the quarter of $173.9m, down from the net income of $178.3m net income during the same period the previous year. Adjusted EBITDAR stood at $148.1m. As of March 31, 2024, cash and cash equivalents stood at $169.3m.

Per segment, Casino & Resorts and North America Interactive revenue improved, but International Interactive revenue declined despite UK growth.

“Bally’s is off to a solid start in 2024, driven by revenue growth in our Casinos & Resorts and North America Interactive segments,” commented Reeves.

“While International Interactive revenues fell 4.4 per cent year-over-year in the aggregate, our core UK interactive operations grew revenues 12 per cent (seven per cent on a constant currency basis) as our strategies play out reflecting the initiatives we adopted in contemplation of the White Paper implementation in the UK.”

$1.29bn

The Nevada Gaming Control Board detailed that statewide gaming revenue declined across March, falling by 1.65 per cent in comparison to the previous year to $1.29bn (March 2023: $1.31bn). 

For the fiscal year to date – July 1, 2023, to March 31, 2024 – revenue in the Silver State has improved by 4.44 per cent YoY to $11.9bn (2023: $11.4bn).

On the Strip, casino operations declined by 1.2 per cent YoY during March to $715.9m (2023: $724.6m), but have increased by 6.51 per cent YoY for the fiscal year to $6.89bn (2023: $6.47bn).

Per vertical, the NGCB noted that slot machine and sports betting revenue decreased year-over-year, but improvements were seen in the table, counter and card games segment.

Slot machine revenue during the month fell by 3.53 per cent in comparison to the previous year to $874.5m, with multi denomination and one cent slots earning $573.7m and $220.3m in revenue respectively.

Table, counter and card games revenue rose by 2.54 per cent YoY to $415.9m, with blackjack and baccarat drawing revenues of $108.8m and $114.7m respectively.

Revenue from sports betting dropped by 32.13 per cent in comparison to the same period last year to $29.8m.

The state collected $86.5m in taxes for the month, down 11.22 per cent in comparison to the same period the previous year (2023: $97.4m).

1.2%

Caesars Entertainment has reported a 1.2 per cent drop in net revenue for the first quarter of 2024 with a “lower-than-expected hold” across several segments.

Publishing its first quarter results, Caesars declared a total net revenue of $2.7bn, down 1.2 per cent in comparison to the same period last year (Q1 2023: $2.8bn) following decreases in its Las Vegas and Regional segments.

The operator reported a net loss for the period of $158m, down 8.2 per cent year-over-year (2023: $136m) as declines occurred across Las Vegas, Regional and Caesars Digital segments.

Same-store adjusted EBITDA by the end of Q1 stood at $853m, a 9.9 per cent drop compared to Q1 the previous year (2023: $958m). Notably, Caesars Digital’s adjusted EBITDA improved to $5m (2023: $4m loss).

Across Las Vegas operations, Caesars reported a 4.5 per cent drop YoY in revenue to $1.03bn (2023: $1.13bn), a 30 per cent decrease in net income to $198m (2023: $293m) and an adjusted EBITDA decline of 15.7 per cent to $440m (2023: $533m).

CEO Tom Reeg commented: “Operating results during the first quarter in Las Vegas are a combination of record occupancy, driven by the Super Bowl and international visitation for Chinese New Year, offset by lower-than-expected hold.” 

For its Regional operations, Caesars declared a 1.7 per cent decline YoY in revenue to $1.37bn (2023: $1.39bn), a 45.3 per cent drop in net income to $41m (2023: $75m) and an adjusted EBITDA decrease of 3.3 per cent to $433m (2023: $448m).

“In our Regional segment, results reflect weather related weakness in January and early February partially offset by our new property openings,” stated Reeg

Caesars Digital revenue improved by 18.5 per cent compared to the same period the previous year to $282m (2023: $238m), but the segment had a 6.3 per cent decline in net loss to $34m (2023: $32m loss) while adjusted EBITDA improved to $5m (2023: $4m loss).

Reeg noted: “Caesars Digital delivered strong revenue growth despite lower-than-expected hold in online sports due to unfavourable outcomes for the Super Bowl and March Madness.”

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Data from the Nevada Gaming Control Board highlighted that statewide gaming revenue fell by 1.65 per cent in comparison to the previous year to $1.29bn (March 2023: $1.31bn). 

For the fiscal year to date – July 1, 2023, to March 31, 2024 – revenue in the Silver State has improved by 4.44 per cent YoY to $11.9bn (2023: $11.4bn).

On the Strip, casino operations declined by 1.2 per cent YoY during March to $715.9m (2023: $724.6m), but have increased by 6.51 per cent YoY for the fiscal year to $6.89bn (2023: $6.47bn).

Per vertical, the NGCB noted that slot machine and sports betting revenue decreased year-over-year, but improvements were seen in the table, counter and card games segment.

Slot machine revenue during the month fell by 3.53 per cent in comparison to the previous year to $874.5m, with multi denomination and one cent slots earning $573.7m and $220.3m in revenue respectively.

Table, counter and card games revenue rose by 2.54 per cent YoY to $415.9m, with blackjack and baccarat drawing revenues of $108.8m and $114.7m respectively.

Revenue from sports betting dropped by 32.13 per cent in comparison to the same period last year to $29.8m.

The state collected $86.5m in taxes for the month, down 11.22 per cent in comparison to the same period the previous year (2023: $97.4m).

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The Nevada Gaming Control Board has published data revealing the Silver State’s operators earned $1.4bn in July revenue, up 6.69 per cent year-over-year (July 2022: $1.3bn) and an increase against June’s $1.25bn.

July was also a month in which revenues from the Strip rose by 7.95 per cent YoY to $834.9m (2022: $773.4m). The month’s figure was also an improvement on June’s $727.3m.

Per segment, slot machines, table games and sports betting all saw revenue growth in comparison to the previous year and the previous month.

Slot revenue improved by 6.1 per cent YoY to $890.8m (2022: $839.6m) with the biggest contribution coming from multi denomination with $513.3m, up 18.82 per cent YoY (2022: $432m).

Only two other slot machine types saw growth in comparison to the previous year – 100 dollars at $3.2m, up 50.65 per cent YoY (2022: $2.1m) and five cent at $3.8m, up 5.27 per cent YoY (2022: $3.6m). 

25 dollar slots had the biggest decrease during the month, falling by 17.76 per cent YoY to $2.9m (2022: $3.5m), followed by five dollars dropping by 13.89 per cent to $6.7m (2022: $7.8m).

Table, counter and card games revenue for July came in at $513.1m, up 7.71 per cent YoY (2022: $476.4m) with the best-performing game being baccarat with $193.3m, up 40.03 per cent YoY (2022: $138m). Blackjack revenue dropped by 12.54 per cent YoY to $108.7m (2022: $124.3m).

Mini-baccarat fell the most against previous year comparatives, falling by 25.23 per cent YoY to $7.35m (2022: $9.8m), followed by let it ride which decreased by 25.41 per cent YoY to $1.4m (2022: $1.9m), and roulette which dropped by 14.7 per cent YoY to $39.6m (2022: $46.4m).

July’s sports betting increased in comparison to the previous year by 55.7 per cent to $25.3m (2022: $16.2m).

For the month, the state of Nevada collected $95.7m in taxes, up 5.94 per cent compared to the previous year (2022: $90.4m).

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In a letter released on social media by the Nevada Gaming Control Board, the DOJ asserted that it will “continue to use all available tools” to detect, investigate and prosecute illegal activities.

During May, regulators across Colorado, Illinois, Louisiana, Michigan, Mississippi, New Jersey and Nevada collaborated to urge the DoJ to prioritise combating illegal offshore operators.

The communication cited the threat illegal operators pose to the industry, including a lack of responsible gaming programme investment, no age verification requirements to protect minors, zero anti-money laundering measures, no fair payout guarantees for customers and a loss of state tax revenue funds for important initiatives.

The letter added that offshore operators don’t undergo or comply with licensing requirements like legal operators since they don’t answer to an authority, nor are they subject to state regulation scrutiny to make sure they’re compliant.

“Offshore operators flaunt state regulations and offer products that do not protect the public, which greatly concerns me and my fellow state regulators,” wrote Michigan Gaming Control Board Executive Director Henry Williams. 

“The Department appreciates the adverse impact illegal gaming has on individuals and communities”

In response, the DoJ letter read: “We appreciated your views on the matter. The Department has undertaken, and continues to pursue, investigations into illegal gaming. 

“The Federal Bureau of Investigation is the investigative arm of the Department tasked with betting allegations of violations of federal gaming laws. 

“When the violations have been substantiated, the FBI will forward the allegations to the appropraite federal prosecuting authority to pursue charges, like a US Attorney’s Office in the jurisdiction where the crimes have occurred, 

“The Department takes seriously the issue of illegal gambling, including illegal online gambling, and continues to successfully investigate and prosecute illegal internet gambling. 

“The FBI works hard to establish and maintain strong partnerships with both public and private entities to combat illegal gaming. 

“The Department appreciates the adverse impact illegal gaming has on individuals and communities and will continue to use all available tools to detect, investigate and prosecute such illegal activity.”

During the latter stage of 2022, the American Gaming Association said that it is “in for the long haul” to protect consumers after a new report following its own calls for the DOJ to get a handle on illegal, online sportsbooks and casinos, as well as unregulated ‘skill game’ machines. 

Urging the sector to “work together” in the ongoing fight, CEO Bill Miller’s call to action came after the AGA’s report uncovered that Americans were betting approximately $511bn a year with illegal igaming websites, unregulated machines and sportsbooks.

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This follows an incident that saw a conman posing as Circa Casino owner Derek Stevens and subsequently duping the resort out of $1.1m, the largest known figure to-date.

Erik Gutierrez, 23, was arrested last month regarding the fraudulent incident, when he reached out and contacted the Circa casino cage seeking $320,000 for what he claimed was an emergency payment to the fire department. 

The supervisor met with Gutierrez on four separate occasions at locations away from the gaming venue, delivering more than $1.1m in payments.

Following this, local news reports also found that Eureka Casino Resort in Mesquite and Golden Nugget Casino in Laughlin were also caught up in the scam.

This has prompted action from the local regulator, which has warned that these incidents are not contained solely within Nevada but are occurring across the country.

In addition, it is noted that as the racket evolves, investigators have noted a shift in tactics to target gaming pits and other areas of casino properties.

The NGCB alerted licensees that employees are the subjects of social engineering tactics as those committing the fraudulent acts pose as casino executives.

From here, directions are issued to withdraw cash and transport the funds offsite for emergency payments on behalf of the casino.

“The cage scam is sophisticated and has been surprisingly effective in defrauding casinos”

Initial contact, it is warned, usually comes via a PBX call, a business telephone system, which is followed up with a text message to the employee’s cell phone that is reportedly sent by a second manager to confirm the instructions.

“The cage scam is sophisticated and has been surprisingly effective in defrauding casinos,” the NGCB notice, that was sent earlier this month, reads. 

“Subjects gain intelligence on high-level casino owners, employees, managers, and others connected to the casino’s money operations. 

“The fraudsters then contact cage employees using a variety of scenarios to manipulate personnel based on a fear of negative consequences for casino employees and/or operations. 

“Whenever an employee hesitates or resists prompt action, subjects state there is extreme urgency for the offsite payment. Additionally, inferences are made that an employee bonus will be paid for the inconvenience of the unorthodox assignment.”

The regulator has urged all casino licensed to undertake strict reviews of casino and cage security protocols that authorise the removal of cage funds from the licensed premises. 

Education is also recommended for all cage cashiers, supervisors, managers, surveillance, security and gaming pit personnel, with a reminder also issued regarding the potential influence of advancing tech on such scams.

“Finally, licensees should be aware that advanced forms of technology, such as artificial intelligence, may increase the effectiveness of this type of fraudulent activity,” the notice continued. 

“Consequently, heightened security protocols must be developed now to safeguard all employee information and casino assets.”

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