Nevada Gaming Board Fines Vegas Strip Casinos Amid AML Negligence

Over 2 years on from when Matthew Bowyer’s illegal gambling business was stunted and Bowyer was arrested, the case has exposed some of the biggest casino operators on the Las Vegas Strip of serious negligence. Resorts World, MGM Resorts International and Caesars Entertainment have been fined over $26.8 million in settlements claiming AML compliance failures. It is one of the biggest cases of systematic negligence across the board in the history of Las Vegas.

It is too early to tell whether there will be a regulatory reform in light of the development. The parties involved will have to strengthen their AML and KYC procedures across their Nevada properties, and the press release couldn’t come at a more intriguing time.

Caesars, MGM and Genting Group Fined by NGCB

Caesars Entertainment became the latest Las Vegas Strip casino operator to get embroiled in the Bowyer case. The Nevada Gaming Control Board voted to fine the operators $7.8 million for failing to identify Bowyer. They fined Caesars Entertainment on November 13, making them the third major brand to be associated with the Mr Bowyer illegal gambling case. The regulators cited:

“unsuitable methods of operation arising from the activities at Caesars by illegal bookmaker, Mathew Bowyer”

In addition to the proposed settlement, Caesars and the other accused operators will need to enhance their anti money laundering programs, as well as provide additional employee training and awareness of the AML protocols. The Gaming Control Board fined 3 operators for negligence directly relating to the Bowyer case, and a fourth on (seemingly) unrelated charges – but also for not complying with AML.

• March 20: Resorts World (Genting Group) – Fined $10.5 Million
• April 18: MGM Resorts International – Fined $8.5 Million
• *May 15: Wynn Las Vegas – Fined $5.5 Million
• November 13: Caesars Entertainment – Fined $7.8 Million

*Not related to Bowyer according to published statement

The Nevada Gaming Control Board has been known to issue fines and proposed stipulations to operators when called for, but the activity has been extremely high this year. It also sent a cease and desist letter to popular US prediction market Kalshi back in March. The underlying message here is quite clear. Not even the biggest operators are given a free pass when it comes to casino security and KYC compliance.

Matthew Bowyer Case As It Happened

Bowyer’s illegal underground gambling circle extended to over 700 clients, funnelling millions of USD through US and offshore operations. His activities revolved around the Strip, specifically at the three operators who were fined (Resorts World, Caesars and MGM). Bowyer was arrested in October 2023, and pleaded guilty to illegal bookmaking, money laundering and filing fake tax returns. He was sentenced to 1 year + 1 day in prison, alongside $1.6 million in restitution.

A sports betting version of Molly’s Game, Bowyer pulled in many high rollers and important clientele. The most prominent of these was Shohei Ohtani’s translator, Ippei Mizuhara. The translator was indebted to Bowyer and had stolen around $17 million from his client’s (Ohtani’s) bank account to pay off his gambling debts. Mizuhara was arrested and sentenced to 5 tears in prison and ordered to pay back the money he stole. Bowyer claimed that of all his clients, a good 15-25% were pro sports athletes.

The scandal rocked the sports league in 2024, but this year there have been new scandals that have continued to shock and awe

Recent MLB and NBA Gambling Scandals

In October, the NBA was hit by a gambling scandal involving Chauncey Billups and Terry Rozier. Over 30 NBA affiliated players and coaches were arrested, with allegations of insider betting and game fixing coming to light. Barely a month later, the MLB had a shocker of its own. Cleveland Guardians pitchers, Emmanuel Clase and Luis Ortiz were found to be manipulating deliveries and using third parties to score big money bets. The MLB responded by capping microbets, extending the organization’s influence to call on its sports partners to cap the returns on these bets to $200.

And so they did, with FanDuel, DraftKings, Caesars, and other partners standing in solidarity to limit the special props bets markets. Intriguingly enough, there was a motion in NJ to ban microbets, independent of the MLB’s case. It just shows though, that the official way through suggested bills, votes, and pleasing both houses of Congress, would take months of negotiations and compromises. The MLB saw the problem, and instead of lobbying to the authorities, it exerted its influence over the MLB’s own partners.

It could act as a precedent for other sports leagues to clamp down on any controversial or potentially dangerous betting products. But to get a complete ban, or crackdown on products at all sportsbooks (and not just sponsors), the regulators have to step in.

Can It Prompt Regulatory Reforms?

The danger here is that America’s mobile sports betting market is still relatively young. These types of scandals do not just hit the betting community as a whole. They also endanger the very sports leagues themselves, with people calling the integrity of the sports into question.

As of right now, neither Nevada nor any other state has directly responded to the developments with strict gambling reforms. There have been no major shifts in the way regulators govern gambling operators, but the Nevada authorities sent a clear signal that there is no tolerance for any negligence.

Though behind the scenes, it will no doubt trigger a few warnings to authorities, who will want to clamp down on any loopholes or gray areas in the iGaming laws. Tighter oversight may be necessary in order to cull illegal activity and suspicious wagers.

KYC and AML Policies In Depth

The casinos on the Vegas Strip are now expected to significantly strengthen Know Your Customer and Anti-Money Laundering procedures. Key measures include:

• Comprehensive Customer Verification: Casinos and sportsbooks must verify the identity of all players, confirm their legal age, and assess the source of funds for high value bettors
• Transaction Monitoring: Sophisticated software tracks betting patterns, large deposits, and unusual transaction activity to flag potential money laundering or problem gambling
• Employee Training: Staff are trained to detect suspicious behaviours and ensure that protocols for reporting potential AML violations are followed
• Regulatory Reporting: All significant transactions or suspicious activity must be reported to the relevant authorities, such as the Financial Crimes Enforcement Network (FinCEN) for U.S. operators
• Ongoing Audits: Both online and offline platforms are expected to conduct regular audits of KYC/AML processes to maintain compliance and demonstrate transparency
• Integrated Risk Management: Operators must implement cross-channel monitoring to ensure consistency between online platforms, mobile apps, and physical casinos, ensuring no gaps in oversight

These steps aim to prevent illegal funds from entering casinos and to protect operators from regulatory penalties. They should also deter any illegal gambling activity and illegal parties from infiltrating the Las Vegas casinos.

Strengthening US Gambling Market Integrity

Mobile sports betting is growing extremely fast across the US, and with Missouri launching online sports betting products, 39 states will have legalized sports betting. Though the space is not growing in a space line. Alongside conventional sportsbooks, there is a growing appetite in the US for alternative betting products and innovative ways to predict sports outcomes for money. Social sportsbooks, or sweepstakes betting sites, along with peer to peer betting apps (betting exchanges), DFS style sports betting platforms and prediction markets have also emerged in this time.

With the space growing up, and outwards, it is up to regulators to control the massive expanse and sort out the basic security and AML policies. If the laws do not evolve with the market, then these scandals are just a byproduct of the loopholes and dated legislation that can be exploited. Regulators, operators, and leagues must therefore collaborate more closely than ever to safeguard sporting integrity while enabling legal, responsible betting. New framework must be made, but in a way that is not too suffocating for the average bettor, as the entire industry is still fighting to win players back from the US sports betting black and gray markets.