Resorts World Las Vegas and Wynn Las Vegas have recently encountered legal troubles in the prominent U.S. gaming hub, a situation that has not gone unnoticed by regulators in New York. These operators, both striving for downstate casino licenses, are being scrutinized by the New York State Gaming Commission (NYSGC) for their legal predicaments in Las Vegas.
At a meeting earlier this week, NYSGC Chair Brian O’Dwyer acknowledged the ongoing legal issues faced by Resorts World and Wynn, suggesting that these problems might impact their bids for New York casino licenses. “We will review all relevant data as to whether a potential licensee possesses the qualifications to hold a casino license. And we will thoroughly review all relevant material — including, of course, the allegations lodged against Wynn and Resorts World,” O’Dwyer stated.
O’Dwyer stressed that the ultimate decision on the allocation of three coveted New York City-area casino licenses lies with the NYSGC, not the New York State Gaming Facility Location Board (NYSGFLB). Genting, the parent company of Resorts World, aims to convert its slots-only venue in Queens into a full-scale casino. On the other hand, Wynn is collaborating with Related Cos. to establish an integrated resort on Manhattan’s West Side.
The legal troubles for Resorts World in Nevada involve a scandal linked to former executive Scott Sibella, who allegedly permitted black market bookmakers to place bets at the Strip casino, some suspected of being placed with illicit funds. Sibella, who was dismissed in September 2023 for policy violations, pleaded guilty in January to contravening the federal Bank Secrecy Act. In May, he was fined $9,500 and a special assessment of $100 by a federal judge. His previous position as president of MGM Grand Las Vegas has spurred speculation that his connections could affect the Empire City Casino’s pursuit of a New York City gaming license, though O’Dwyer did not address MGM at the NYSGC meeting.
In Wynn’s case, the Las Vegas property recently agreed to pay $130.13 million to the Department of Justice (DOJ) to settle allegations of anti-money laundering violations — the largest fine ever imposed on a U.S.-based casino company based on admissions of criminal wrongdoing, according to the DOJ. Furthermore, last week it was disclosed that Wynn and several former executives agreed to a $70 million settlement with investors to resolve securities fraud claims, where plaintiffs alleged that top executives knowingly concealed founder Steve Wynn’s alleged sexual misconduct, resulting in a stock slump once these allegations became public. However, this issue was not mentioned by O’Dwyer.
This is not the first instance where potential vulnerabilities around Resorts World New York’s bid for a downstate license have been highlighted. A report released last month by CIMB Securities noted that the Las Vegas legal issues could pose complications in New York. O’Dwyer remarked, “These allegations are serious. But I must emphasize that in one instance, the complaint is still pending. And in the other (Wynn), the US Department of Justice settled the matter without filing criminal charges. Nevertheless, it is the responsibility of this commission to assure that our licenses exhibit the utmost integrity and have established robust procedures with their employees to assure strict compliance with our laws and regulations.”
Despite these legal difficulties, Resorts World New York holds some advantages. It has been operating in Queens for 13 years, contributed more than $4 billion in taxes to the state, and is one of the highest-grossing regional casinos in the U.S. Genting has also promised a significant expansion that would create jobs if it secures one of the three downstate casino licenses.
