Resorts World Grants Extension of NGCB Investigation

The extension was first mentioned in Resorts World’s parent company Genting Berhad’s third-quarter earnings report last week. The NGCB confirmed to the Las Vegas Review-Journal yesterday (December 2) that the casino has applied and received the extension.

The 31-page complaint, originally filed Aug. 15, details serious misconduct on behalf of the Strip property. The board claimed that “individuals with suspected and actual connections to illegal bookmaking,” illegal gambling and organized crime were welcome at Resorts World, resulting in a “general lack of control.”

The NGCB has asked the Nevada Gaming Commission (NGC) to take formal action against the casino. In Nevada, the NGCB serves as prosecutor and NGC serves as judge and jury for regulatory matters. Possible disciplinary action includes license suspension or revocation, fines, or placing the property under government supervision.

Resorts World is linked to the illegal bookmaking scandal

Resorts World is embroiled in an illegal bookmaking scandal that has rocked the industry. One of the people who inspired the NGCB complaint was Mathew Bowyer, a California-based bookmaker who has lost millions at Resorts World since it opened in 2021.

Bowyer was the bookmaker for Ippei Mizuhara, Shohei Ohtani’s former Japanese interpreter. Mizuhara is awaiting sentencing for stealing around $17 million (£13.4 million/€16.2 million) from the MLB superstar to pay off debts to Bowyer. Resorts World was one of the casinos where Bowyer and his associates laundered money, the other being the Pechanga Resort Casino in California. Bowyer’s wife Nicole was also hired by Resorts World as his personal host.

Additionally, Scott Sibella served as President and COO of Resorts World during this time. He was unexpectedly fired last September for violating company policy, with no further details revealed. He then pleaded guilty in May to anti-money laundering (AML) violations stemming from his time as president of MGM Grand. He was sentenced to one year of probation and a $9,500 fine. While at the MGM Grand, he allegedly allowed Wayne Nix, another well-known illegal bookmaker, to pay $120,000 in cash.

The NGCB is reportedly conducting a separate investigation into Sibella, but details have not been disclosed.

Bad timing after Q3 results

The timing of the response isn’t ideal for a casino that just had its worst quarter in two years. Third-quarter revenue was $177 million, down 18% from $218 million in the second quarter. EBITDA fell even more – by 68% from $50 million to $16 million.

In the report, the company attributed this to these two factors. The first was “an unusually 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 casino and resort marketing database to attract high-net-worth customers and drive repeat visits, grow with established and new convention groups to deliver high-margin group business and invest in new dining concepts, entertainment and retail offerings to increase operating leverage,” the company said in its report.