UPDATE: Former Resorts World & MGM Grand Prez Loses Gaming License

In a significant ruling, the Nevada Gaming Commission has voted unanimously to revoke the gaming license of Scott Sibella, the former president of Resorts World and MGM Grand. This follows a settlement agreed upon by Sibella and the Nevada Gaming Control Board earlier this month.

This decision stems from a serious investigation into Sibella’s connections to money-laundering activities, which prompted his dismissal from Resorts World in September 2023.

Details of the Case

Sibella was alleged to have permitted an individual known as Wayne Nix, previously with minor league baseball, to gamble vast sums of money at MGM Grand, despite Nix operating an illegal sports betting business. This behavior spanned from August 2017 to February 2019, a period that ultimately led to severe regulatory scrutiny.

Having accepted a plea agreement in January 2024 regarding violations of the Bank Secrecy Act, Sibella is expected to face consequences for his actions. He is currently serving a year of probation and has been fined $9,500 as part of the agreement.

Settlement with Gaming Control Board

The negotiated settlement with the Gaming Control Board resolves three counts against him, shielding Sibella from potentially harsher penalties, including a lifetime ban or extended litigation.

Nevertheless, the agreement requires him to pay a fine of $10,000, which will help cover the costs involved in the Gaming Control Board’s investigation.

Concerns Surrounding Resorts World

While the complaint focused on Sibella’s time at MGM Grand, it also encompasses any potential violations during his tenure at Resorts World. This casino is currently facing a separate disciplinary complaint that includes charges related to violations of anti-money laundering regulations.

Over the years, Resorts World has been linked to various gambling scandals, leading to significant law enforcement actions against multiple figures in the industry.

Conclusion

Scott Sibella’s loss of his gaming license highlights the regulatory challenges facing the gaming industry in Nevada. As Resorts World continues to navigate controversies, the incident underscores the importance of compliance within gaming operations.

How NY Casino Licenses Could Bode Well for Genting and MGM

Recent communications from the New York Gaming Facility Location Board (NYGFLB) have opened the door to optimism for Genting and MGM Resorts International as they eye the three upcoming downstate casino licenses. This announcement could indicate a competitive edge for these established venues.

Notably, Genting’s Resorts World New York in Queens and MGM’s Empire City Casino in Yonkers are currently operational as slot-only facilities paired with racetracks. Their established presence in the gaming market makes them strong contenders to secure two out of the three downstate permits, leaving competing bids with a high hill to climb.

Effective Market Entry Strategy

In its latest round of responses to bidders, the NYGFLB highlighted that while “speed to market” is essential, it is just one of various considerations in the awarding process. This implies that state officials are keen on getting these gaming venues operational soon after licenses are distributed.

With bids expected to be submitted to the board by June 2025, the overall decision on license allocations will rest with the New York State Gaming Commission (NYSGC), which will have the final authority over approvals.

Capital Commitments by Genting and MGM

Both Genting and MGM have made substantial promises regarding capital investments essential for operations. The NYGFLB mandates that all applicants demonstrate a minimum investment of $500 million before commercial gaming can commence. Genting has pledged $5 billion for transforming its Queens venue into a full-scale Las Vegas-style casino, while MGM’s proposed enhancements at Empire City are expected to generate significant economic activity and job opportunities.

Projected Economic Impact

Though currently operating without table games, both properties stand out as some of the highest-grossing regional casinos in the U.S. If permitted to introduce traditional casino gaming, the surge in revenue is anticipated to lead to a boost in tax receipts for the state as well.

Tax Framework for New Casinos

Recent clarifications provided by the NYGFLB also gave potential operators an overview of the tax responsibilities they can expect. A 25% tax on gross gaming revenue (GGR) from slot machines and a 10% tax on table games will be effective when the new venues open.

Additionally, a one-time application fee of $1 million will be required from each applicant. Groups applying together can decide which member will undertake this fee. Beyond that, all selected entities will also be subject to a $500 million licensing fee, a figure that regulators might adjust based on gaming market dynamics.

Conclusion

The latest developments from the NYGFLB position Genting and MGM favorably in the highly competitive landscape for New York’s downstate casino licenses. Their existing operational status and commitment to significant investments may likely place them ahead in securing the permits, further influencing the state’s gaming economy.

Japan Casino News: Corruption Scandal Linked to the Pursuit of Integrated Resort Licenses

Recent legal developments in Japan have underscored the high stakes involved in the pursuit of integrated resort licenses, as the country’s Supreme Court recently upheld a four-year prison sentence for former lawmaker Tsukasa Akimoto. This ruling serves as a critical turning point for the gambling industry, stemming from Akimoto’s conviction for accepting bribes specifically tied to the controversial process of securing integrated resort licenses.

Akimoto, a member of the central government’s House of Representatives, testified during his defense in a 2019 bribery case. Reportedly, he accepted bribes amounting to $34,000 from 500.com, a Chinese online gaming firm seeking to establish a casino resort in Japan.

About the Bribery Case

The court’s rejection of Akimoto’s plea for a reduced sentence has been widely reported across Japanese news platforms. The prosecution initially brought charges against him after investigating gifts that included cash, airfare, and hotel accommodations provided by the firm during 2017 and 2018.

As one of the few entities licensed by China’s Ministry of Finance to operate online lottery and sports betting, 500.com faced severe ramifications in the United States as well. The U.S. federal government indicted the company on charges of bribery aimed at Japanese officials to facilitate their pursuit of a large resort project.

Unsuccessful Scheme to Secure Casino License

500.com was part of a consortium attempting to obtain an IR license for a casino development in regions like Hokkaido or Okinawa. However, a sluggish regulatory environment and a competitive bidding process led to the withdrawal of several proposals, including that of 500.com.

Japan’s 2018 IR bill permitted up to three casinos, yet only one license has been granted six years post-legislation, underscoring the complexities in the country’s gaming landscape. A notable project currently in development is a partnership involving MGM Resorts International and Orix Corporation, which has set aside over $8 billion for a project in Osaka slated to open by late 2030.

Creation of the Japan Casino Regulatory Commission

In another significant update regarding Japan’s gaming framework, the National Diet has approved the formation of the Japan Casino Regulatory Commission. This essential five-member panel, functioning as an external bureau of the Cabinet, will oversee the establishment and operation of casino facilities to maintain order and security.

Takafumi Sato, a prominent prosecutor, has been appointed as chair of the regulatory agency, succeeding Michio Kitamura. Sato will officially take on this role from January 7, 2025. Additionally, Junichi Kakimizu will step into the commission next month, replacing Hiroyuki Ujikane.

Commission members Hirofumi Kitamura and Keiko Ishikawa will continue their duties, while Commissioner Watari Michiko is set for reappointment for a second five-year term. These appointments mark a commitment to enhancing the oversight and proper regulation of the expanding casino industry in Japan.

Conclusion

The upholding of Tsukasa Akimoto’s sentence reflects Japan’s dedication to integrity within its gambling framework. As the nation strides forward with regulatory advancements and new casino projects, it remains vital to monitor ongoing developments in the integrated resort sector, which continues to evolve amidst challenges.