NY Gambling Regulator Alarmed by Wynn, Resorts World Allegations

There is much anticipation regarding the three new downstate casino licenses New York is expected to award. Not unexpectedly, this will be a lengthy process, considering that the New York State Gaming Facility Location Board is expected to start accepting applications toward the end of June next year.

NYSGC, Concerned with Two Potential Casino License Bidders
This effectively means that while some gaming and hospitality giants present their plans, nothing is official until an application is submitted. Still, this doesn’t mean that the state’s gambling regulator, the New York State Gaming Commission (NYSGC), won’t look into the potential bidders.

Brian O’Dwyer, the Commission’s chairman, recently participated in a public meeting that saw him discuss a number of important topics, including concerns related to two of the potential downstate casino license bidders. The applicants in question are Wynn Resorts and Resorts World Las Vegas, two companies that recently faced legal hurdles and according to the chairman, need to be monitored by the NYSGC.

“Of particular concern to me are that wo of our VLT licensees and potential bidders for a new casino license have been cited in Las Vegas for various violations of the law.“

Brian O’Dwyer, chairman of the NYSGC
Allegations Against the Two Bidders Are Particularly Disturbing
O’Dwyer spoke about the issues each of the potential bidders is facing. Focusing on Wynn Resorts, he pointed to the company’s recent record $130 million forfeiture agreement with the US Department of Justice. The settlement stemmed from an investigation that alleged financial offenses.

Earlier this month, Wynn admitted through a non-prosecution agreement that its subsidiary, Wynn Las Vegas, committed such offenses to “circumvent the conventional financial system.” As a result, the leading gaming and hospitality company agreed to pay the hefty sum to settle the case.

Speaking about Wynn Resorts’ legal troubles, O’Dwyer explained: “These allegations are serious, but I must emphasize that in one instance the complaint is still pending and in the other, the US Department of Justice settled the matter without filing criminal charges.”

Separately, the Commission’s chairman pointed to a complaint against Resorts World, another potential bidder for a New York casino license. O’Dwyer explained that Resorts World Las Vegas was accused of “violating the anti-laundering law by allowing illegal book bookmakers to gamble in the millions of dollars.” He deemed the allegations as “particularly disturbing,” regardless if they refer to negligence or “worse willfully disregarded to promote financial gain.”

Casino License Bidders Need to Comply with the State’s Regulations
According to O’Dwyer, the Commission has the responsibility to ensure that the operators interested in securing a license demonstrate “utmost integrity and have established robust procedures with their employees to assure strict compliance with our laws and regulations.”

Amid the scrutiny, the chairman said that the Commission will continue to review not only the aforementioned candidates, but all potential casino license candidates. Finally, O’Dwyer reiterated that the qualifications of all interested candidates will be reviewed, and a particular focus will be put on the allegations against Resorts World and Wynn.