Latest news with #NevadaGamingCommission
Miami Herald
3 days ago
- Business
- Miami Herald
Why Tilman Fertitta became Wynn Resorts' top shareholder
The Nevada Gaming Control Board on Wednesday recommended Wynn Resorts Ltd.'s top shareholder and its chief operating officer suitable for licensing in Kirk Hendrick's last meeting as board chair. Board members voted unanimously to recommend Tilman Fertitta suitable as a beneficial shareholder of the company and Brian Gullbrants as an officer. Final approval of licensing is expected by the Nevada Gaming Commission on June 26. Fertitta is owner of Landry's Inc., which controls the Golden Nugget casino franchise and has properties in Las Vegas, Laughlin and Lake Tahoe, is owner of the National Basketball Association Houston Rockets and is Wynn's top shareholder. In April, Fertitta acquired 400,000 shares of Wynn through a company buyback program to bring his total to 13 million, roughly a 12.3 percent stake. In May, Fertitta said he was forging ahead on a Strip project, an as-yet-unnamed 43-story, 2,420-room resort on 6.2 acres on the southeast corner of Las Vegas Boulevard and Harmon Avenue. Later that month, he paused the direct oversight of his business portfolio to take a Trump administration appointment as ambassador to Italy and San Marino. Fertitta, a cousin of Red Rock Resorts executives Frank and Lorenzo Fertitta, was required to resign from his business holdings to comply with federal ethics rules, but is allowed to own shares and collect dividends as a passive investor in Wynn. Fertitta did not attend Wednesday's meeting, and his attorney, Steven Scheinthal, said that on Wednesday Fertitta was moving his possessions to Italy. Scheinthal said Fertitta is unhappy with Wynn's recent stock price and with some of the company's recent management decisions, but believes in the company's investment in a resort in the United Arab Emirates, Wynn Al Marjan Island, which will open in 2027. In the past month, Wynn shares have dipped around $10 a share to Friday's closing price of $84.70 a share. Gullbrants recommended Gullbrants, who opened Encore Boston Harbor for the company in 2019, later moved to Las Vegas and became chief operating officer North America, overseeing both Las Vegas resorts and the Boston operation. Gullbrants, also an officer on the Las Vegas Convention and Visitors Authority board of directors, addressed the many management changes that have occurred at Wynn since former CEO Steve Wynn left the company in 2018. He also stressed the importance of company culture, respect among employees and regulatory compliance. In May, Wynn Resorts was disciplined by the Nevada Gaming Commission with a $5.5 million fine resulting from the discovery of an illegal scheme to recruit high-rolling gamblers through unlicensed money transmitting businesses. Wednesday's meeting was the last one for Hendrick, who announced in January that he planned to step down as chairman at the conclusion of Nevada's 2025 legislative session. In April, it was announced that Mike Dreitzer, former CEO of Gaming Arts LLC, a privately held Las Vegas-based gaming equipment supplier that holds more than 150 gaming licenses, would take the chairman's role in July. Dreitzer also served in the Nevada attorney general's office. Throughout Wednesday's meeting, Hendrick was applauded by applicants and attorneys for the 2½ years he has served as chairman. ___ Copyright (C) 2025, Tribune Content Agency, LLC. Portions copyrighted by the respective providers.
Yahoo
29-04-2025
- Business
- Yahoo
Kalshi Shrugs Off NJ Gaming Regulator as Judge Defers to Feds
A New Jersey federal judge on Wednesday granted Kalshi a preliminary injunction that halts the New Jersey Division of Gaming Enforcement from blocking the derivatives exchange and prediction market operator from operating in the Garden State. The ruling, which was issued by U.S. District Judge Edward S. Kiel, follows a similar win for Kalshi in Nevada earlier this month. U.S. District Judge Andrew P. Gordon blocked the Nevada Gaming Commission from using sports betting prohibitions against Kalshi. More from NCAA, Major Conferences Block Mario Chalmers NIL Lawsuit Baseball America the Latest to Be Target of 'Bork Bill' Rutgers Football Transfer Wins Court Ruling to Keep Playing In both cases, the central legal issue is preemption, meaning whether Congress has preempted states from using state laws–including sports betting ones–to regulate a business or activity. Article VI, Clause 2 of the U.S. Constitution contains the Supremacy Clause, which establishes that the Constitution and laws of the U.S. 'shall be the supreme Law of the Land.' Kiel and Gordon concluded that New Jersey and Nevada, respectively, are preempted when it comes to Kalshi's sports-based event contracts. Kalshi's sports-related contracts in New Jersey were initially offered in January. Kalshi listed such contracts as the 'buying or selling on which team will advance in a given round of a college basketball tournament.' New Jersey regulators informed Kalshi it appeared to be violating the New Jersey Sports Wagering Act, which requires companies to obtain a license to lawfully offer sports wagering, and the New Jersey Constitution, which makes betting on New Jersey college teams or on college games played in New Jersey illegal. Kalshi disagreed. The company informed New Jersey regulators that the state is sidelined on this topic because Kalshi has already been cleared by federal Commodity Futures Trading Commission (CFTC). The CFTC is an independent federal agency created through a federal statute, the Commodity Exchange Act of 1936 (CEA). Importantly here, the CFTC enjoys exclusive jurisdiction to regulate commodities and futures on designated exchanges. Five years ago, CFTC certified Kalshi as a 'designated contract market,' meaning it could offer event contracts. The company offered contracts about political events, including whether the Democrats or Republicans would gain a majority in the House or Senate. Earlier this year, Kalshi began to offer sports-related contracts. As Kiel stresses, 'the CFTC has not reviewed or prohibited Kalshi's sports-related event contracts despite possessing the authority to do so.' Kalshi has relied on the absence of a CFTC prohibition to reason it has the CFTC's permission. Represented by Gurbir S. Grewal and other attorneys from Milbank, Kalshi maintains that New Jersey is preempted because federal law 'makes clear that the CFTC has exclusive jurisdiction over accounts, agreements, and transactions traded on designated contract markets.' The company also asserts that Congress wanted a federal entity 'to bring futures markets under a uniform set of regulations' rather than each state adopting its own system that might conflict with one another. Kalshi maintains that subjecting its sports-related event contracts to New Jersey law would conflict with the CFTC and, more broadly, with the constitutionally-backed authority of the federal government. New Jersey sees it differently. It argued to Kiel that Kalshi's preemption theory ignores certain key features. Most notably, New Jersey maintains the CEA's 'exclusive-jurisdiction provision' doesn't contemplate the kind of sports-related contracts offered by Kalshi because, as Kiel summarized, 'they are not associated with a potential financial, economic, or commercial consequence and state law still applies to contracts that do not fall within CFTC's exclusive jurisdiction.' Kiel concluded that Kalshi's interpretation of the law made more sense. The CFTC could attempt to stop Kalshi from offering sports-related event contracts, but that is for the CFTC, and not a state, to decide under the federal agency's exclusive jurisdiction. Kiel observed that 'by their very existence' Kalshi's sports-related event contracts are evidence of the CFTC's 'exercise of its discretion and implicit decision to permit them.' Kiel also rejected New Jersey's argument that 'sporting events are without potential financial, economic, or commercial consequence.' He noted as persuasive Kalshi referencing 'a few recent examples of the economic impact of sporting events in television, advertising, and local communities.' While sports-related events contracts are fundamentally about sports and are thus topically different from which political party will control Congress after the 2026 midterms or whether Jerome Powell will still be Chair of the Federal Reserve come this fall, a team or player winning a tournament has—like political events—various impacts on media, broadcasting and related fields. Lastly, Kiel found compelling Kalshi's argument that it will suffer irreparable harm unless the judge issues an injunction. Kiel noted that Kalshi 'faces credible threat of civil and criminal liability' from New Jersey regulators. He also pointed out the looming threat of legal woes 'imperils the reputation Kalshi has cultivated over several years.' Kiel underscored how one of Kalshi's business partners 'has already chosen to not move forward with listing Kalshi event contracts in New Jersey' due to fear of Kalshi's legal problems and associating with such a company. New Jersey can appeal Kiel's order to the U.S. Court of Appeals for the Third Circuit. Best of College Athletes as Employees: Answering 25 Key Questions
Miami Herald
22-04-2025
- Business
- Miami Herald
Las Vegas Strip casino owner gets awful news from regulator
The Nevada Gaming Commission has an important role in adopting regulations to implement and enforce state laws governing gambling in the Silver State. Created in 1959 with the adoption of the Gaming Control Act in Nevada, the commission also has the powerful authority for licensing of gaming, with the ability to approve, restrict, limit, condition, deny, revoke, or suspend any gaming license in the state. Don't miss the move: Subscribe to TheStreet's free daily newsletter The commission has taken significant action against casinos and their executives over the years. In 2019, the commission fined Wynn Resorts $20 million, the largest commission fine ever, for ignoring employees' complaints of misconduct. Related: Las Vegas Strip casino closes classic rock band residency In July 2023, Wynn Resorts founder Steve Wynn agreed to a $10 million fine and a ban from any future involvement in Nevada gambling after the Nevada Gaming Control Board filed a complaint in 2019 over sexual abuse and misconduct allegations. More recently, Resorts World on March 27, 2025, agreed to a $10.5 million fine after the Nevada Gaming Commission filed an amended complaint on March 20, alleging the casino and its then-President Scott Sibella allowed illegal bookmaker Mathew Bowyer to do business and gamble at the casino from December 2021 until Oct. 6, 2023, at which time Bowyer was banned from Resorts World. And now, another major Las Vegas Strip casino operator, MGM Resorts International (MGM) , has agreed to pay an $8.5 million fine to the State of Nevada related to a complaint for disciplinary action settlement with the Nevada Gaming Control Board. Related: Las Vegas Strip casino signs another superstar singer residency The complaint against MGM and its casinos MGM Grand and Cosmopolitan was filed contemporaneously with a stipulation for settlement on April 17, alleging "unsuitable methods of operation arising from the activities of illegal bookmaker, Wayne Nix, which were described in non-prosecution agreements between the U.S. Attorney's Office for the Central District of California and MGM Grand and The Cosmopolitan," according a statement by the Gaming Control Board. More Las Vegas: Las Vegas Strip Sphere signs another superstar band residencyLas Vegas Strip casino closes country superstar's residencyLas Vegas Strip casino signs global superstar singer to residency The complaint for disciplinary action also detailed the activities of illegal bookmaker Bowyer at MGM properties, which were discovered by the Nevada Gaming Control Board during the course of its investigation. The allegations center on the actions and failures of MGM Resorts International's employees in relation to Nix and Bowyer from 2017 to 2020, as well as deficiencies within the company's anti-money laundering program. MGM executives and employees cooperated with the Nevada Gaming Control Board's extensive and lengthy investigation, the board's statement said. The complaint alleged that the then-MGM Grand president Sibella and two casino hosts were aware of Nix's illegal sports betting operation based in California and allowed him to present illicit cash proceeds to casinos and place personal bets at MGM casinos. Nix allegedly solicited new customers for his illegal gambling business from marketing hosts at casinos he played in and would offer casino hosts a commission or gratuity in exchange for referring casino customers. Sibella and the casino hosts would also provide Nix with complimentary benefits of the MGM Grand, including meals, rooms, board, and golf trips with senior executives and other high net-worth customers of the casino to encourage Nix to patronize the casino and spend his illicit proceeds there. From 2017 to 2020, MGM Grand accepted over $4 million in illicit cash proceeds from Nix's gambling business, according to the complaint. Nix also gambled at the Cosmopolitan before MGM purchased the casino in 2021. In March 2022, Nix entered a plea agreement with the U.S. District Court for the Central District of California, pleading guilty to one count of conspiracy to operate an illegal gambling business and one count of subscribing to a false tax return. Sibella in December 2023 also entered a plea agreement with the U.S. District Court for the Central District of California, pleading guilty to a single count of failing to a report a suspicious transaction on July 27, 2018, as required regarding a presentation of $120,000 in cash by Nix at the MGM Grand. The Nevada Gaming Commission revoked Sibella's gaming license in December 2023 and fined him $10,000. Bowyer, who pleaded guilty in August 2024 in federal court to operating an illegal gambling business, had also been a patron at MGM casino properties. Nevada Gaming Commission regulations considered certain acts by Sibella and other MGM employees as unsuitable methods of operation, which included "Catering to, assisting, employing, or associating with, either socially or in business affairs, persons of notorious or unsavory reputation or who have extensive police records..." In addition to the fine, the stipulation dictates specific conditions be placed on MGM and on the properties' gaming licenses. The proposed settlement also detailed several remedial measures implemented at MGM and its subsidiary gaming properties. The majority of the conditions and remediations focus on enhancements to MGM's anti-money laundering program, as well as additional training and employee awareness of its requirements. The Nevada Gaming Commission will consider approval of the stipulation when its meets on April 24 for its monthly meeting. The Nevada Attorney General's Office and counsel for MGM will explain the terms for the stipulation and request the commission's approval of the settlement. Related: Las Vegas Strip casino closes country star's residency The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
28-03-2025
- Business
- Yahoo
$10.5 million fine for Las Vegas Strip resort is 2nd-highest in state history
LAS VEGAS (KLAS) — Resorts World will pay a $10.5 million fine for 'unsuitable methods of operation,' agreeing to the second-largest fine ever assessed by the Nevada Gaming Commission. It's a heavy price for what Nevada Gaming regulators regard as a grave situation at a Las Vegas Strip casino. The complaint originally filed in August detailed two illegal bookmakers operating with impunity, gambling millions as anti-money laundering (AML) regulations went by the wayside. Casino hosts and upper management allowed or ignored the situation, resulting in a culture of money laundering. Only Wynn Resorts has paid a higher fine — $20 million assessed in February 2019 for failing to properly investigate sexual harassment allegations against former CEO Steve Wynn. On Wednesday, Resorts World announced that it was laying off around 50 employees. If one thing was clear from Thursday's hearing, the company's AML program wasn't included in the layoffs. Resorts World has redoubled its efforts and has set a goal to be an industry leader. Commissioners discussed the scale of the penalty before voting to approve the settlement, with Commissioner Abbi Silver recusing herself from participating because of a longtime friendship with Scott Sibella, who was in charge at Resorts World when the events spun out of control. Sibella lost his gaming license. 'Personally, I feel that the fine is on the low side,' Commissioner Rosa Solis-Rainey said during Thursday's hearing. 'We've seen a larger fine for things that weren't on the gaming floor, and not over the same period of time,' Commissioner Brian Krolicki said. 'At the end of the day, the folks who made those decisions, allowed those decisions, who were in the C-suite, who were on the floor, who were in the pit, who were the hostesses … they're gone,' Krolicki said. PENDING-Stipulation-for-Settlement-24-04-ComplaintDownload The amount of the fine was disclosed a week ago, and became final with Thursday's vote. Resorts World has two days to pay the state. The investigation into Resorts World started as regulators examined the activities of Mathew Bowyer, a Southern California man who pleaded guilty to running an illegal gambling business in August 2024. Bowyer took bets from the interpreter who worked for Los Angles Dodgers superstar Shohei Ohtani in a case that received massive media coverage. Bowyer's wife, Nicole, was an independent contractor at Resorts World, working as a casino host for customers including her husband, according to statements during Thursday's commission meeting. The investigation also involved Damien Forbes, a patron when the resort opened in 2021 who was known to be an illegal bookmaker by a casino host. That host even sent business to LeForbes, according to the August complaint. Names of the hosts were not released by gaming regulators. The allegations against Resorts World were 'particularly egregious,' according to Darlene Caruso, Nevada's chief deputy attorney general. She outlined the terms of the settlement: Resorts World will pay a $10.5 million fine, due to the state within two days Conditions have been attached to the company's gaming license, specifying it will retain core elements of its recently revised AML program, including ongoing updates and an annual review. Certain AML documents must be retained for at least five years. Within 60 days, Resorts World will assign all independent agents an AML training module. In two years, a internal audit and report are required. If regulators are not satisfied, an external audit will take place. Resorts World will report any notice of a criminal investigation to Nevada gaming authorities. The company will retain at least its current AML staffing levels. Nevada gaming regulators reserve the right to bring additional actions against Resorts World. Major changes in leadership have already taken place since regulators got involved. A board of directors over the resort has been established — a big change for corporate owners Genting Berhad. That board includes Chair Jim Murren, former CEO at MGM Resorts International, former Nevada Gov. Brian Sandoval, former Nevada Gaming Control Board Chair A.G. Burnett, Genting Berhad executive Kong Han Tan, and executive Michelle DiTondo. The company has a new CEO, a new COO/CFO and a new position for a compliance officer, which Resorts World is actively working to hire. The company has trained 1,100 employees and is working with UNLV to create a customized gaming compliance program for executives and key employees. Krolicki said this should send another signal to gaming operators. 'I also believe this is a clarion call up and down that street that aml, compliance, audit, all of these things we talk about all the time, we really mean it. It's easy to say, but it's harder to do,' he said. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
28-03-2025
- Business
- Yahoo
Resorts World fields ‘dream team' as Gaming Commission signs off on $10.5 million fine
Resorts World Las Vegas board members A.G. Burnett (far left), Jim Murren (center), and former Gov. Brian Sandoval (far right) face Nevada Gaming Commission. (Photo: Dana Gentry/Nevada Current) The Nevada Gaming Commission on Thursday agreed to a stipulated agreement and $10.5 million fine against Resorts World Las Vegas, which faced multiple counts of failing to comply with anti-money laundering laws by allowing known illegal sports bookies to gamble on dozens of occasions. 'We've got a dream team of governance on the board here in front of us today. You've all had extensive Wikipedia pages,' Gaming Commissioner and former Lt. Gov. Brian Krolicki gushed of the newly-minted Resorts World board of directors seated in the front row – former Gov. Brian Sandoval (who Krolicki served under as Lt. Gov.), former Gaming Control Board chairman A.G. Burnett, and former MGM Resorts CEO Jim Murren. Resorts World attorney Erica Okerberg called the revamped leadership 'Resorts World 2.0.' The new board is intended to right the $4.3 billion listing ship that opened on the Las Vegas Strip in 2021. The Current was first to report in 2023 that the Criminal Division of the Internal Revenue Service was investigating Resorts World and MGM Grand for alleged anti-money laundering violations. The IRS settled its case last year with MGM, which paid a $7.45 million fine. Former MGM Grand president Scott Sibella, who later became president of Resorts World, was fired by Resorts World weeks after the Current broke the news of the investigation. Sibella later pleaded guilty in federal court to one count of failing to file federal anti-money laundering reports. Nevada gaming regulators subsequently filed a complaint against Resorts World, and resolved a complaint against Sibella by revoking his gaming license for five years. The Nevada Gaming Control Board (GCB) 'found that the violations alleged in its amended complaint are particularly egregious, warranting a substantial penalty and significant changes at Resorts World,' Darlene Caruso, who represents the commission on behalf of the Nevada Attorney General's Office, told gaming commissioners. 'It's breathtaking,' Krolicki said of the GCB complaint against Resorts World. 'The lack of control, the lack of reward of open culture,' that extended from the casino floor 'to the C suites, and I'll argue, even beyond Las Vegas, was truly extraordinary.' Resorts World Las Vegas is owned by Genting Assets, a Malaysian conglomerate. The stipulated agreement states Resorts World 'believed it was operating within industry standards and norms' and does not accept responsibility for the alleged violations. 'I'm surprised by that a little bit, just given the posture that it's in,' Commissioner Rosa-Solis Rainey said. 'They fell down on the job. I don't think there can be any reasonable dispute about that from anybody. This is not a situation where information wasn't available to them. It was there and leadership chose to ignore it.' 'I don't know who is denying liability and pays $10.5 million. It's not a thing, usually,' observed Commission Chairperson Jennifer Togliatti. 'Personally, I feel the fine is on the low side,' Solis-Rainey said, adding she'd vote in favor of the stipulation because of the 'extensive efforts' the company has taken and 'tremendous expenses' it has and will incur as it imposes corrective action. The GCB, in its settlement with Resorts World, reserves the right to take additional disciplinary action in the event the Department of Justice or Department of Treasury takes any criminal, civil, or administrative action against the casino. During public comment, high-stakes professional gambler R.J. Cipriani told the commission that 'harassment and intimidation' by Resorts World executives led to his 'unwarranted arrest, multiple bogus felony charges and wrongful exclusion from the property.' Cipriani said he turned to the Criminal Division of the IRS and other federal authorities in California because he was ignored by Sibella, Genting chairman K.T. Lim, and then-Clark County Sheriff Joe Lombardo, who is now governor of Nevada. Federal authorities have yet to file a complaint against Resorts World but are said to be negotiating a non-prosecution agreement and fine with the casino, according to sources close to the case. Murren and Burnett declined to comment following the commission meeting. 'I believe this will be a wonderful fix and a new pivot for Resorts World,' Krolicki said, calling the agreement a 'clarion call up and down the street that AML (anti-money laundering), compliance audits, all of these things we talk about all the time – we really mean it. Nevada is a best in class, you know, whatever we want to call it, regulatory environment.' Although the fine, second in size only to the $20 million fine imposed against Wynn Las Vegas for its namesake's sexual encounters with employees, was criticized by some as insufficient, 'I don't think it's for us to tweak' the fine, Krolicki said. 'I accept the hard work that was done with the GCB. I never wanna do this again.' Gaming Commissioner and former Nevada Supreme Court Justice Abbi Silver recused herself from the vote because of her 'long-standing friendship' with Sibella, adding Sibella, while president, was a member of the casino's anti-money laundering compliance committee. The personal relationship, she said, 'would materially affect the independent judgment of a reasonable person in the situation.'
