John L. Smith Says Latest Resorts World Action Sends Powerful Message to Strip's Poker Underworld

Writing an opinion piece for the Nevada Current this past weekend, the acclaimed reporter John L. Smith says that the recent disciplinary action lodge on behalf of The Nevada Gambling Board against Resorts World sends a powerful message to the Vegas Strip's poker underworld.

In the 31-page complaint filed nearly two weeks ago, the board claims that Resorts World and its parent companies allowed “a culture that welcomed certain individuals with suspected or actual ties to illegal bookmaking, histories of federal convictions related to illegal gambling, and ties to organized crime.”

Among those said to regularly frequent the establishment, bookie Matthew Bowyer, 49.  He is accused of taking bets  from more than 700 bettors, including Dodgers superstar Shohei Ohtani’s former interpreter, Ippei Mizuhara, who recently pleaded guilty to  tax fraud for stealing nearly $17 million from a bank account belonging to Ohtani. 

A handful of other bookmakers, including a well known poker player, have reportedly been banned from Vegas casinos over the last year amid an active federal investigation into unnamed casino executives.

Scott Sibella, the former president of MGM Grand and Resorts World Las Vegas, received one year of probation and a fine of $9,500 for violating a federal law requiring casinos to know the source of their customer’s funds and file a suspicious activity report.

Sibella maintains he did nothing that benefited him personally.

“I was charged from the very beginning for not filing a SAR, accepted a plea, and have taken full and complete responsibility for what I did,” Sibella said in a statement distributed shortly after the sentencing by his attorney John Spilotro. “I want to reiterate that by, anything alleged, I gained no benefit – neither personal, professional or financial.”

Sibella said at the time he is “relieved to have this matter concluded and accept the terms imposed today by the court. As I have said throughout this investigation, I regret the pain this has caused my friends and family and am extremely grateful for those who chose to stand with me throughout these difficult times.”

The complaint continues by alleging that certain individuals were allowed to place “millions of dollars in wagers” at Resorts World, and hotel executives failed to adhere to its Anti-Money Laundering Program.

“The culture within Resorts World created the perception, or the reality in certain instances, that Resorts World is an avenue to launder funds derived from illegal activity,” the board stated in a press release.

Smith writes that the changes in the latest technology making it easier to gamble from your laptop and hand-held device, in addition to the wildfire of legal sports betting that’s burning in state after state, make the challenges to casino regulation greater than ever before.

"Other companies will surely say their own player compliance and anti-money laundering due diligence is rock solid, that lapses in executive judgment and regulatory rigor are unfortunate, but rare. But those who track the poker room underworld and watch the increasing pressure casino marketing executives at some properties are put under to attract and keep big customers might disagree.

"Some will try to write it off as a casualty of the COVID economy Resorts World was born into when it opened June 24, 2021. You know, a series of unfortunate events. An argument can be made that Resorts World executives cut corners and opened the doors to wiseguy players and thinly disguised illegal bookmakers out of necessity — or perhaps even desperation. In this case, I believe that would be a big mistake.

"Church choir membership isn’t a prerequisite for gambling in a casino. The industry employs convicted felons and has often welcomed players with a criminal past as long as they’re gambling with legitimate funds. But Nevada’s gaming statutes don’t list an exemption for catering to felons convicted of gambling crimes. On the contrary. The complaint alleges Resorts World casino executives welcomed players they knew or should have known were illegal bookmakers, had gambling-related criminal convictions or had ties to organized crime."

Smith notes that the decision to play the gracious host to convicted felons and organized crime associates Edwin Ting and Chad Iwamoto, who was convicted for his role in one of the largest sports betting operations in Las Vegas history, "sort of boggles the mind". The complaint notes facts about Ting and Iwamoto that were easily accessed with a simple Google search.

"It wasn’t as if Resorts World was an unsophisticated operator caught flatfooted. Nor was it lacking in player compliance infrastructure. Its anti-money launder program was approved by its executive management team and applies to its officers, employees and satellite marketing offices. The language of the anti-money laundering program is unequivocal about the importance of maintaining 'effective internal controls and procedures” and maintaining measures “to prevent its casinos from being used for money laundering or other criminal activity.'

A"fter reading the complaint, it’s clear that Resorts World did not lack sound anti-money laundering due diligence advice. Those who defined its casino culture simply declined to take the advice they were given."

Smith concludes that the complaint makes it clear the board is "saying this isn’t over."