Genting’s Las Vegas Casino Escapes with Fine but Gets Chastised
PETALING JAYA: Genting Bhd subsidiary Resorts World Las Vegas (RWLV) Retains Gaming Licence
Resorts World Las Vegas has been slapped with a US$10.5 million (RM46.6 million) fine by the Nevada Gaming Commission.
In a filing with Bursa Malaysia today, Genting said the commission accepted the terms of the settlement RWLV signed with the Nevada Gaming Control Board (NGCB) last week, which includes a fine of US$10.5 million (RM46.6 million), said to be the second largest fine imposed in Nevada’s gaming history.
Settlement Terms
Under the settlement, the resort operator will not admit or deny allegations in the complaint filed by the NGCB last August, accusing RWLV of failing to ban individuals with ties to illegal bookmaking from its casino in the Las Vegas Strip.
Gaming Regulators Deliver Stern Message
While the fine appears to be a rap on the knuckles, RWLV’s top brass got a dressing down from the gaming regulators during the hearing, according to Nevada newspaper reports.
The RWLV board members present at the hearing included board chairman Jim Murren, CEO Alex Dixon, and former Nevada governor Brian Sandoval. Also present was newly-minted Genting CEO Tan Kong Han.
Chastised by Gaming Regulators
In its news report, The Nevada Independent said RWLV’s new management team and advisory board sat stoically during the hearing as gaming regulators chastised the casino operator for its “anti-money laundering violations”.
The report said commissioner Brian Krolicki delivered a stern message about the charges against the resort, which was opened in 2021, which he hoped would resonate with other Strip operators.
“The lesson being learned today is not the size of the penalty, but the reputational risk that has happened,” Krolicki said, adding that violating rules will result in “severe ramifications.”
Conditions of Settlement
Commissioner Rosa Solis-Rainey suggested the US$10.5 million penalty was “on the low side”. However, in the interest of moving forward and considering the “tremendous expenses” the company has undertaken to correct the matter, she supported the settlement.
Another commissioner, George Markantonis, suggested that RWLV did not escape unscathed. Even with the settlement, he said Resorts World “will still carry the wound to its brand for a while”.
While the settlement allows the resort to keep its gaming licence, it comes with conditions including having greater scrutiny on its anti-money laundering programme and practices.
Compliance with Programme
Compliance with the programme would have to be reviewed by an independent internal audit team two years after the approved settlement agreement.
Genting’s Response
In the aftermath of the debacle, RWLV overhauled its leadership team and board of directors, appointing industry veteran Murren, the former MGM Resorts CEO, as chairman and roping in former NGCB chairman AG Burnett as a board member.
Genting’s Stock Performance
Genting closed 2.1% or 7 sen lower at RM3.25 today, valuing the group at RM12.6 billion. It has fallen 15.6% year to date and 31% over the past one year.
Conclusion
While Genting’s Las Vegas casino, Resorts World Las Vegas, has escaped with a fine, it has been chastised by gaming regulators for its anti-money laundering violations. The settlement comes with conditions, including greater scrutiny on its anti-money laundering programme and practices, and compliance would have to be reviewed by an independent internal audit team two years after the approved settlement agreement.
FAQs
Q: What is the size of the fine imposed on Resorts World Las Vegas?
A: The fine is US$10.5 million (RM46.6 million).
Q: What are the conditions of the settlement?
A: The settlement includes having greater scrutiny on its anti-money laundering programme and practices, and compliance would have to be reviewed by an independent internal audit team two years after the approved settlement agreement.
Q: What is the current stock performance of Genting?
A: Genting closed 2.1% or 7 sen lower at RM3.25 today, valuing the group at RM12.6 billion. It has fallen 15.6% year to date and 31% over the past one year.