Caesars Entertainment agrees to pay a $7.8 million anti-money laundering fine related to convicted illegal gambling broker Matt Bower. The Nevada Gaming Control Board announced on Thursday that Caesars Entertainment was fined for anti-money laundering negligence related to Bower, becoming the third Las Vegas gaming company to face fines due to the Bower incident, following MGM Resorts International and Las Vegas Sands. The complaint details five charges, involving unverified sources of funds and insufficient due diligence, with the case to be deliberated by the committee on November 20.
Details of the Fine and Regulatory Facts
The complaint states that Caesars Entertainment and its affiliated properties (including Caesars Palace) have been suspicious of Bower's activities since April 2017, including a lack of information on the source of funds and a mismatch between the source of funds and gambling levels. Bower was listed as a "high-risk" customer for nearly five years until he was banned on January 22, 2024. The specific charges include: failure to identify Bower's source of funds, failure to ban him after receiving negative information, failure to conduct sufficient due diligence, failure to promote an anti-money laundering officer, and failure to conduct related investigations. Caesars Entertainment emphasized in a statement that "integrity and compliance are crucial," and stated it would strengthen anti-money laundering and KYC mechanisms.
Regulatory Background and Industry Impact
The Nevada Gaming Control Board will deliberate on this case on November 20. If approved, Caesars Entertainment's $7.8 million fine will be the third highest this year, following Resorts World's $10.5 million and MGM's $8.5 million. Nevada, as the "gold standard" of US gaming regulation, has faced consecutive anti-money laundering scandals this year, including a $5.5 million fine for Wynn Las Vegas and an investigation into the Fontainebleau. Regulatory board member George Assad publicly condemned the misconduct, and Brian Crowley stated that hefty fines should serve as a warning. Caesars Entertainment's violations are similar to those in the MGM and Resorts World cases, all neglecting internal anti-money laundering procedures.
Current Challenges for Caesars Entertainment
This fine is the latest blow to Caesars Entertainment this year. The company's performance has been mediocre in the first three quarters, with profits in Las Vegas significantly declining in the third quarter. The stock price has fallen below $20, down 41% this year and 50% over the past 12 months. Third-quarter debt stood at $11.9 billion, far exceeding major competitors Wynn ($10.5 billion) and MGM ($6.1 billion). Additionally, Caesars Entertainment faces business development restrictions due to warnings from the Nevada Gaming Control Board that its market forecasting services might jeopardize its gaming license. Although the company's digital business is a highlight, regulatory challenges continue to intensify operational pressure.
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