Genting Bhd’s pursuit of one of the three coveted downstate casino licenses in New York could be imperiled by potential regulatory action it faces in Nevada, according to CIMB Securities. The Nevada Gaming Control Board (NGCB) recently announced it is considering financial penalties against Resorts World Las Vegas (RWLV), Genting’s sole Nevada property, for its involvement in allowing known illegal bookmakers to place wagers there. Regulators have accused Resorts World Las Vegas of not only knowingly permitting these bookies to bet but also failing to scrutinize the source of their funds, casting doubt on the integrity of the resort’s anti-money laundering protocols.
CIMB analysts warned in a recent report that a negative review by the commission could jeopardize Resorts World New York City’s bid for a casino license. Resorts World New York, a slots-only venue in Queens, has been operational for about 13 years, contributing more than $4 billion in taxes to the state. Despite lacking table games, it is one of the highest-grossing regional casinos in the country, leading to speculation that it is almost guaranteed to secure one of the three downstate permits.
The potential repercussions for Genting in Nevada are significant. CIMB Securities pointed out that Resorts World Las Vegas might face accountability for up to 300 separate violations, which could result in fines amounting to $75 million. There is also the possibility that Nevada regulators could take more severe actions, such as suspending or revoking RWLV’s non-restricted gaming license, although such measures would be exceptionally harsh.
Scott Sibella, the former MGM Resorts International and RWLV executive central to the controversy, pleaded guilty in January to violating the federal Bank Secrecy Act and was fined $9,500 along with facing a $100 special levy in May. In Nevada, Sibella could face the loss of his gaming license and fines up to $750,000.
So far, New York regulators have not commented on whether the issues at Resorts World Las Vegas could impact Genting’s ambitions in the state. The primary focus in New York remains on accelerating the bidding process for the three downstate casino licenses, a task that seems unlikely to advance in the immediate future.
Approximately a year ago, rumors suggested that MGM’s Empire City Casino might also be hindered in its efforts to secure a permit due to Sibella’s association with the operator, as he was president of MGM Grand on the Las Vegas Strip for a decade. However, such speculations have not been confirmed by any New York regulator.
With Genting and MGM already established in New York and known to policymakers, and both promising billions of dollars in enhancements to their existing venues and the creation of thousands of new jobs should they win traditional casino licenses, it is conceivable their New York plans can survive the controversies surrounding Sibella in Las Vegas.
