Hot Water
Hot Water
Nevada regulators are less than pleased with Resorts World's role in recent investigations into illegal bookmakers.
The Bulletin Board
NEWS: Resorts World is in hot water following the investigation into illegal bookmaking on its property.
LEGALIZATION and REGULATORY UPDATES: AL gambling supporters make their case; OK sports betting and OH iCasino updates; Cali tribes legislative win.
QUICK HITTER: 13 Nebraska Senators have come out against mobile betting.
QUICK HITTER: FanDuel gets it; you have to spend money to make money.
AROUND the WATERCOOLER: Athlete harassment exists outside of betting.
STRAY THOUGHTS: Not one tear will be shed if the US restricts sports betting ads.
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Resorts World Finds Itself in Hot Water
The Nevada Gaming Control Board has filed complaints against Resorts World Las Vegas and Nicole Bowyer, the wife of Matthew Bowyer, the bookmaker at the center of the Shohei Ohtani-Ippei Mizuhara scandal.
In its complaint, the NGCB has accused Resorts World of violating anti-money laundering protocols by allowing Matthew Bowyer and other illegal bookmakers to place millions of dollars in wagers at the property.
Per the complaint, Resorts World “allowed a culture that welcomed certain individuals with suspected or actual ties to illegal bookmaking, histories of federal felony convictions related to illegal gambling businesses, and ties to organized crime.”
Without spending the entire newsletter on all the different angles (you can read Dana Gentry’s excellent column in the Nevada Current for that), one of the more jaw-dropping claims, in a complaint filled with jaw-dropping complaints, is that Resorts World hired Matthew Bowyer’s wife, Nicole Bowyer, to serve as his casino host at his request:
“As an independent agent under contract with Resorts World, Ms. Bowyer was allowed to directly profit from casino wagering by her husband and his friends at Resorts World. Consequently, Ms. Bowyer received payment from Resorts World, despite surely knowing that her husband’s source of funds derived, at least in part, from illegal activity. To date, Ms. Bowyer has failed to cooperate with the NGCB investigation.”
“Resorts World and several employees are accused of very serious gaming and AML crimes,” Las Vegas expert John Mehaffey (an alum of the Talking Shop Podcast, episode #18) posted on X. “The allegations paint an insane picture. I wonder what the enforcement action will be. The process will be interesting to watch.”
Mehaffey later posted a poll asking his followers what the appropriate punishment should be, and if his followers are any indication, Resorts World could be in unchartered territory:
We shall see, considering the slap on the wrist Scott Sibella received — Sibella was in charge of the MGM Grand and President and COO at Resorts World while the illegal bookmaking was taking place.
“Sticking out like a sore thumb is the fact that Sibella was President and COO when Resorts World opened its doors in June 2021. He was removed from that position in September 2023, which places him at the property when, as ESPN reports, Mizuhara was wiring money to marker accounts at Resorts World and Pechanga Casino in California. According to ESPN, Bowyer lost $7.9 million from June 2022 to October 2023 at Resorts World.”
Legalization and Regulatory Updates: AL Gambling Supporters Make Their Case; OK Sports Betting and OH iCasino Updates; Cali Tribes Score Legislative Win
Alabama tracks make a case for full-scale casinos: Dr. Lewis Benefield, president and CEO at Victoryland and Birmingham Race Course, has big plans for the property, but only if the Alabama legislature authorizes tracks to open full-scale casinos. Benefield told AL.com, “he wants to bring back live greyhound racing and fully reopen Victoryland.” Benefield said the HHR machines and off-track-betting options allow the track to “tread water.” Growth will only happen if the Alabama legislature passes a gambling expansion bill.
Oklahoma sports betting will happen on tribal terms: At the Oklahoma Indian Gaming Conference, tribal representatives reiterated that they are interested in mobile gambling, but it has to be on tribal terms. “Partner with the tribes. Don’t try to fight the tribes. Partner with them,” Susan Jenson with the California Nations Indian Gaming Association said. “We need a compact supplement offer that says tribes are able to operate sports betting,” Matthew Morgan, chairman of the Oklahoma Indian Gaming Association, said. “Then this is the amount of revenue that we’d like for you to share if you want to offer that.”
Ohio lawmakers temper online casino expectations: Things aren’t looking good for Ohio’s online casino legalization efforts. According to Play USA’s Matthew Kredell, even its staunchest supporters believe online casinos are a multi-year effort. “Our governor is not a big fan of gambling. He’s a teetotaler from the start,” Ohio State Sen. Bill DeMora told Kredell. “I don’t think our current Senate president, who is trying to be speaker next year, is a big fan of gaming either, so it faces challenges.” Sen. Nathan Manning just hopes it happens before he leaves office at the end of 2026.
California moves a step closer to allowing tribes to sue cardrooms: The California Assembly Appropriations Committee approved SB 549, a bill that would give California tribes standing to sue California cardrooms. Tribes claim cardrooms illegally offer casino games like blackjack and baccarat. The bill must pass the Assembly and Senate by the end of the month. California Nations Indian Gaming Association (CNIGA) Chairman James Siva is championing the bill, noting that “previous Tribal lawsuits seeking a hearing on these cardroom-controlled games were dismissed in both state and federal court not on the legal merits of the practice, but merely on procedural grounds. SB 549 would give Tribes legal standing.”
Previous coverage on STTP: The backstory, Cardroom opposition, Tribal support
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Quick Hitter: 13 Nebraska Lawmakers Oppose Mobile Betting
In a statement released on Friday, 13 Nebraska State Senators expressed their opposition to mobile sports betting.
“Nebraska very recently legalized casinos largely on the promise of property tax relief that has failed to manifest itself. Expanding gambling further will inevitably lead to expanding the associated addictions and adds to more suffering in our communities. Online sports betting turns every cell phone into a 24/7 handheld gambling device, leading to new addictions.”
The Senators who signed the statement were John Lowe, Ray Aguilar, Joni Albrecht, Robert Clements, Robert Dover, Steve Erdman, Steve Halloran, Brian Hardin, Rick Holdcroft, Loren Lippincott, Rita Sanders, and Julie Slama.
Mobile betting is one of the options Nebraska lawmakers are considering during a special session designed to find a way to offer residents property tax relief.
Quick Hitter: FanDuel Is Spending Money to Make Money
There’s a saying in business that you have to spend money to make money, and this nugget from a recent Eilers & Krejcik Gaming (a newsletter sponsor) EKG Line Newsletter touting FanDuel’s staying power as the #1 operator in the US is a clear indication that FanDuel understands the assignment:
“In a similar vein, FanDuel noted payments costs had increased to ~6% of NGR, thanks in part to a faster deposit/withdrawal system that meant customers were transacting more often. That's costing FanDuel money, but the product payoff is worth it, per CFO Rob Coldrake, because “customers love that feature.” That type of focus on product has helped FanDuel to five straight no. 1 rankings in our OSB app testing.”
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Around the Watercooler
Social media conversations, rumors, and gossip.
This post landed on my radar last week:
They also have something else in common - these sports are no higher than tenth-tier sports betting markets. Harassment is terrible in every instance, but this list would point to the problem being a**holes, not legal sports betting.
Stray Thoughts
If you want to understand why sports betting ad restrictions or even outright bans will work, look no further than this article from Awful Announcing:
“One of the most refreshing things about watching the Olympics has been the total absence of gambling ads and discussion,” they wrote on the Bill Simmons subreddit. “I had almost forgotten what it was like to not be inundated with FanDuel or DraftKings ads every commercial break. And there haven’t been any conversations about odds or major upsets as they pertain to odds. It’s just pure sport, and it’s awesome.”
The article then posted a small assortment of tweets from viewers with similar sentiments.
If you think an ad ban or heavy-handed restrictions cannot happen, you might want to pay closer attention to the situation unfolding in Australia.
“An open letter signed by two former prime ministers addressed to the administration of Prime Minister Anthony Albanese and opposition leader Peter Dutton has called for the full implementation of the complete ban of gambling advertising as recommended by the 2023 Murphy Report.”