Members of the Nevada Gaming Commission had several names for convicted bookie Mathew Bowyer as they considered and ultimately approved a $7.8 million anti-money laundering fine against Caesars Entertainment for its involvement with Bowyer Thursday.
He was referred to as a “bad actor”, an “AML wrecking ball” and even a “semi-wannabe gangster” at one point. Regardless, he is quickly running up the list of the most infamous figures in the history of Las Vegas.
With the approved fine, Caesars became the third Las Vegas entity to face AML fines in connection to Bowyer this year, joining MGM Resorts and Resorts World Las Vegas. This $7.8 million penalty ranks third among them, with MGM paying $8.5 million and Resorts World paying $10.5 million for similar AML offences.
In all three cases, Bowyer was allowed to frequent casinos for years despite the entities having at least suspicion of his workings as an illegal bookmaker, suspicions they sometimes shared. Bowyer was ultimately sentenced to one year in federal prison in August. The five-count complaint against Caesars connected Bowyer to Caesars Palace, Harrah’s Resort Southern California and Harveys Lake Tahoe (now Caesars Republic Lake Tahoe).
Caesars Chairman Gary Carano made a rare public appearance before the commission Thursday. His father, Donald Carano, was a legendary Nevada gaming attorney and executive. But the younger Carano had the unpleasant task of taking accountability for the company’s shortcomings.
“On behalf of Caesars, our employees, our entire leadership team, our board of directors, I sincerely apoligise for our role in the Bowyer incident and the impact it had on the gaming industry of the state of Nevada,” Carano said.
How regulators calculated Caesars fine for Bowyer
With three cases now centring on the same individual, it is difficult for regulators to avoid making comparisons. Caesars received the smallest fine of the three, potentially implying that its transgressions were the least egregious. But officials were far from agreed on that idea, and their disagreements were perhaps indicative of the added scrutiny and criticism the scandals generated.
Before the commission heard from Caesars, Nevada Gaming Control Board Chairman Mike Dreitzer explained why and how the board negotiated the proposed $7.8 million fine. According to the board’s investigation, Bowyer frequented Caesars properties from 2017 to January 2024. The company knew Bowyer had been banned from other casinos and categorised him as “high risk” for five years before banning him, which only came after federal authorities raided his home.
Caesars won a total of $2.6 million from the bookie, Dreitzer said, so the fine represents a tripling of that. This was done to quell any notion of Caesars still ending up with a net gain from Bowyer. But in reference to the MGM and Resorts World cases, Dreitzer asserted that Caesars’ conduct was the least offensive.
“Here, we do have the conduct occurring over a significant period, certainly, seven years,” Dreitzer said. “However, it’s important to state that there is no evidence of any Caesars employee engaging in any intentional conduct. This was a case of systematic negligence that led to this complaint, and that stands in contrast to other matters that this commission has previously heard where there have been bad actors who have acted intentionally within the employ of the licencees in question.”
‘One bad actor’ vs ‘systematic negligence’ for Caesars
Dreitzer’s comments proved to be a point of debate among commissioners. While MGM was not named specifically, much of the disagreement appeared to center around its conduct as opposed to Caesars’, as the former’s fine was higher. Commissioner Rosa Solis-Rainey was the most notable detractor, and later cast the lone vote against the settlement.
“I see some similarities and some differences between this case and others that we’ve handled recently,” Solis-Rainey said. “Some of the differences are more egregious, in my mind, than what we saw previously.”
In the case of MGM, Solis-Rainey noted that “a bad actor” was at fault for intentionally contravening AML protocols, which she felt mitigated MGM’s culpability as a company. This might have been a reference to Scott Sibella, the now-banned executive featured in both the MGM and Resorts World cases. Caesars, meanwhile, could be seen as more at fault given that it does not have a specific person to blame.
“I think it’s worse in [Caesars’] case where the programme worked, [Bowyer] was reported to the AML officer, and nothing was done,” she said.
Commission Chairwoman Jennifer Togliatti was more aligned with Dreitzer, saying she felt the fine was “placed appropriately on the spectrum of fines that this commission has imposed” so far this year. She noted the stipulations included in the settlement, Caesars staff changes and the effort of the board to negotiate the fine as reasons for supporting it.
“I don’t know that it’s more egregious, necessarily, I think it’s different,” Togliatti said.
Commissioners Brian Krolicki and George Markantonis, both of whom have become increasingly irritated at the volume of AML cases, sounded exasperated in their comments.
“It’s almost numbing that we continue to have this conversation, particularly because of the acts of one individual,” Krolicki said, referencing Bowyer.
Both commissioners ultimately voted for the settlement.
Contrition from the C-suite at Caesars
In addition to Carano, Caesars CEO Tom Reeg and CLO Ed Quatmann also attended to atone for the company’s misconduct. The scandal adds to what has been a tough year for the operator, whose stock price has dropped precipitously in the midst of poor Las Vegas performance and a failed New York City casino bid.
“We know that this entire matter has been a stain on the state and we’re embarrassed that we’re a part of it,” Reeg told the commission. “We never sacrifice compliance for revenue. There is no customer that’s worth illegitimate profits. We didn’t catch Bowyer and we should have, full stop.”
Quatmann, as the legal and compliance chief, faced more extensive questioning. He acknowledged the company did not do enough in relation to Bowyer but noted several remediation efforts. Caesars’ 2020 takeover by Eldorado Resorts, the Carano family business, was also discussed, given that it occurred in the middle of the misconduct. Quatmann joined Caesars from Eldorado.
“Our AML headcount overall has increased considerably since this matter has occurred,” Quatmann said. “And as has been mentioned earlier, our AML spend is roughly twice what it was in 2017.”
Company did not admit to wrongdoing
Quatmann now has final say on all AML matters as part of the changes. All “high-risk source of funds decisions” now funnel to him, even on vacation, as he promised to commissioners.
When pressed about why Caesars only took action on Bowyer after his arrest was made public despite having intel from other casinos, Quatmann indicated a level of hubris on behalf of the company.
“I think what happened is we saw other licencees and their issues and said, ‘Well, that’s not us,’” he said.
The contrition from the various officials was clear over the course of the lengthy debate. But Caesars attorney Michael Alonso specified that his client did not admit to or deny any wrongdoing in the settlement, and that language was agreed to by the board.
“It’s obvious from what you’re seeing today, we’re taking responsibility for what happened, but for reasons and consequences that have nothing to do with the state of Nevada, we felt it was important to have that language in the stipulation,” Alonso said.
Alonso did not elaborate on what those reasons were and commissioners did not ask. MGM did admit to wrongdoing in its settlement earlier this year.
After approving a hefty AML fine for Caesars, Nevada regulators are having a tough time reaching consensus on the growing list of scandals.