Published on: September 27, 2024, 04:04h.
Last updated on: September 27, 2024, 04:04h.
Resorts World Las Vegas and Wynn Las Vegas recently faced legal challenges in the US gambling capital, which are being closely monitored by regulators in New York as the operators seek casino licenses in the state.
During a recent meeting, Brian O’Dwyer, Chair of the New York State Gaming Commission (NYSGC), indicated that the legal challenges faced by Resorts World and Wynn in Las Vegas could impact their ability to obtain licenses in New York.
We will assess whether a potential licensee meets the requirements to hold a casino license by reviewing all relevant information, including the allegations against Wynn and Resorts World,” stated O’Dwyer during the meeting.
O’Dwyer emphasized that the final decision on awarding the three coveted casino licenses in the New York City area lies with the NYSGC, not the New York State Gaming Facility Location Board (NYSGFLB). Genting, the parent company of Resorts World, is looking to transform its slots-only venue in Queens into a full casino. Wynn is collaborating with Related Cos. to develop an integrated resort on the West Side of Manhattan.
Sources of Resorts World, Wynn Legal Issues
The legal troubles of Resorts World in Nevada are related to a scandal involving former executive Scott Sibella, who allegedly permitted illegal bookmakers to place bets at the casino. These bets are suspected to have been made with illicit funds. Sibella was dismissed by Genting in September 2023 for violating company policies.
Earlier this year, Sibella pleaded guilty to violating the federal Bank Secrecy Act and was fined $9,500 by a federal judge. Prior to his time at Resorts World Las Vegas, he served as president of MGM Grand Las Vegas. There have been concerns about his ties to MGM affecting Empire City Casino’s bid for a gaming license in New York, although O’Dwyer did not address this at the NYSGC meeting.
Regarding Wynn, the company’s Las Vegas property recently agreed to pay $130.13 million to settle allegations of anti-money laundering violations with the Department of Justice (DOJ). This settlement represents the largest fine ever imposed on a US-based casino company for criminal misconduct, according to the DOJ.
Additionally, Wynn and former executives agreed to pay $70 million to investors to settle claims of securities fraud. Plaintiffs in a class action lawsuit alleged that top executives knowingly hid founder Steve Wynn’s alleged misconduct, causing financial harm to investors. However, O’Dwyer did not mention this case at the meeting.
Past Concerns about Resorts World
Previous reports have raised concerns about Resorts World New York’s eligibility for a casino license in New York due to legal issues in Las Vegas. O’Dwyer acknowledged these concerns at the NYSGC meeting, emphasizing the need for license holders to uphold integrity and compliance with laws and regulations.
Despite the challenges, Resorts World New York has a strong track record, operating in Queens for over 13 years and contributing significant tax revenue to the state. If awarded a downstate casino license, Genting plans to expand and create jobs in the region.