During its meeting late last month, the New York State Gaming Commission recognized the legal issues surrounding at least two potential bidders for downstate casino licenses.
Chairman Brian O’Dwyer emphasized that “it is the responsibility of this commission to assure that our licensees exhibit the utmost integrity and have established robust procedures with their employees to assure strict compliance with our laws and regulations.”
This statement came as the likes of Resorts World Las Vegas and Wynn Resorts face legal problems in Nevada. Now, the ratings agency Fitch suggests that those issues could create “reputational risk” that could affect the future of Resorts World New York City and its quest to become a full-fledged casino.
Nevada complaint brings ‘possible effects’ to Resorts World NYC
Recall that Resorts World Las Vegas faces a 12-count complaint in Nevada for allegedly violating anti-laundering laws by allowing illegal bookmakers to gamble “in the millions of dollars.”
The situation involved former executive Scott Sibella, who was also an executive with MGM – which operates another racino looking to receive a downstate license in Empire City Casino. Sibella pleaded guilty to failing to file a suspicious activity report following claims that he knowingly allowed criminals to gamble “ill-gotten” money in the casino.
During the NYSGC meeting, O’Dwyer called the allegations “particularly disturbing,” noting that they imply a “culture of non-compliance in that information on illegal or suspicious activity was either negligently or worse willfully disregarded to promote financial gain.”
Resorts World Las Vegas operates under Genting Berhad, a separate publicly traded company than Genting Malaysia, which runs Resorts World NYC. However, Fitch’s note says that Genting Group “may face reputational risk in the short term until the complaint is resolved.”
What’s more, Fitch added, that could come with “possible effects” on Resorts World NYC’s bid to garner a downstate casino license.
NYSGC will thoroughly review all casino applicants
What exactly that means remains to be seen, of course.
The NYSGC made it clear during its recent meeting that it will consider all factors when determining who receives a casino license, which could allow the recipients to offer online casinos in New York once lawmakers legalize them.
In addition to highlighting the legal issues involving Wynn, O’Dwyer called the allegations “serious.” He added, however, that with Resorts World, “the complaint is still pending.”
The final step before handing out the three licenses involves state regulators reviewing all information regarding each applicant. O’Dwyer made it clear that the NYSGC “will conduct a thorough review” of each bidder.
“In doing so we will review all relevant data as to whether a potential licensing 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.”
