The regulatory spotlight on Las Vegas casinos intensified again this week after Caesars Entertainment agreed to pay a $7.8 million fine for repeated anti-money laundering failures involving convicted illegal bookmaker Mathew Bowyer.
The Nevada Gaming Control Board (NGCB) announced the penalty late Thursday, outlining the operator’s shortcomings in a detailed five-count complaint dated 10 November.
Caesars now becomes the third major Strip operator tied to enforcement actions linked to Bowyer, following earlier fines issued to MGM Resorts and Resorts World Las Vegas.
The latest development adds new pressure to Nevada’s regulatory framework, which has dealt with a series of high-profile AML cases throughout 2024.
Bowyer, 50, began his one-year federal prison term in October after years of operating as one of the most prominent bookmakers in the United States.
His name entered national headlines when federal investigators revealed he accepted more than $325 million in bets from Ippei Mizuhara, the former interpreter for baseball star Shohei Ohtani.
The Nevada Gaming Commission is set to review the proposed settlement on 20 November.
Complaint Details Show Years of Compliance Lapses
The NGCB’s findings indicate Caesars properties had flagged concerns about Bowyer as early as April 2017.
The complaint states: “The Board’s investigation revealed that Caesars and/or its subsidiary properties, including Caesars Palace, had identified, as early as April 2017 and on multiple subsequent occasions until he was banned by Caesars, suspicions regarding Bowyer’s activities, including that there was a lack of information regarding his source of funds and/or that his source of funds failed to justify his level of play.”
Despite internal records labeling Bowyer as a “high risk” patron from June 2019 onward, he was permitted to gamble at Caesars venues for nearly five more years.
The complaint also notes Caesars documented that two other Las Vegas casinos had banned Bowyer as early as May 2017.
Caesars banned Bowyer only after media reports surfaced detailing a federal raid on his home.
Regulators say Bowyer “won and lost millions of dollars” across Caesars Palace, Harrah’s Resort Southern California, and Harveys Lake Tahoe — now rebranded as Caesars Republic Lake Tahoe.
Five Allegations Against Caesars
The NGCB cited five key failures:
- Failure to establish Bowyer’s source of funds
- Failure to ban Bowyer
- Failure to conduct proper due diligence after negative information emerged
- Failure to elevate Bowyer to the company’s AML officer
- Failure to launch an adequate investigation
Caesars responded with a formal statement asserting its commitment to compliance, saying: “At Caesars Entertainment, integrity and regulatory compliance are paramount. We fully cooperated with the Nevada Gaming Control Board throughout its investigation and are committed to maintaining strong anti-money laundering and ‘know your customer’ programs. We take our compliance responsibilities seriously and are dedicated to continuously strengthening our practices to meet and exceed the highest standards.”
A Growing List of AML Scandals in Nevada
This year has challenged Nevada’s reputation as the “gold standard” for casino oversight.
Alongside the Bowyer-related fines levied against three Strip properties, Wynn Las Vegas agreed to pay a $5.5 million fine in a separate AML case.
Regulators are also reviewing alleged violations involving the newly opened Fontainebleau.
NGCB member George Assad has been outspoken about repeated compliance failures, while Nevada Gaming Commission member Brian Krolicki described the escalating fines as a needed “clarion call” for Strip operators.
Since January 2019, the NGCB has seen five different chairs.
Current chair Mike Dreitzer said during October’s Global Gaming Expo that the board is prepared to intensify enforcement if misconduct continues.
“Fines make headlines, but at the end of the day from my perspective it’s even more important that the operators, the licensees are acting in a corrective way,” he said. “Certainly we are not afraid to continue to ramp up enforcement, if that means fines, whatever makes sense.”
Operational Struggles Add Pressure to Caesars
The enforcement action marks another challenge in what has been a difficult year for Caesars Entertainment.
The company’s financial performance has lagged across all three quarters, with Las Vegas revenues taking a notable hit in Q3.
Its digital division remains the strongest performer, though analysts increasingly expect a sale or spin-off as growth outpaces the company’s traditional gaming properties.
Regulatory uncertainty in Nevada has also weighed on Caesars’ ability to pursue prediction-market wagering, a sector where competitors like FanDuel and DraftKings are advancing.
“As we’ve said before, we can’t be out in the lead on this one,” Caesars Digital president Eric Hession told analysts, emphasizing the company’s need for regulatory clarity.
The operator also faced setbacks in New York, where its Times Square casino proposal encountered opposition from theatre unions and was rejected by its local community board in September.
Caesars’ stock fell below $20 on Friday, bringing its year-to-date decline to more than 40%.
The company reported $11.9 billion in debt in the third quarter, exceeding levels at Wynn and MGM.