LAS VEGAS (KTNV) — A pattern of systematic negligence led to an illegal bookmaker operating inside of Caesars Entertainment casinos on the Las Vegas Strip.
On Thursday, the Nevada Gaming Control Board approved a $7.8 million settlement with the company over incidents involving illegal bookmaker Mathew Bowyer. You may remember this is the same illegal bookmaker tied to investigations that led to Resorts World receiving a $10.5 million fine, which is the second largest in Nevada gaming history, and MGM Resorts receiving an $8.5 million fine.
Federal investigators found that Bowyer operated an unlicensed and illegal bookmaking business. Investigators also found that Bowyer employed agents and sub-agents, including casino hosts, who worked for his illegal gambling business and were paid a portion of the losses that bettors incurred and paid.
One of those bettors was Ippei Mizuhara, the interpreter for Los Angeles Dodgers star Shohei Ohtani.
In August, Bowyer was sentenced to 12 months in prison and two years of supervised release. A judge also ordered him to attend gambling addiction counseling and pay $1.6 million in restitution.
As far as the Caesars Entertainment investigation, the Nevada Attorney General's Office found that Bowyer had operated in their casinos from at least 2017 to January 2024.
"Since 2017, respondents had suspicions regarding his activities and source of funds. On at least nine different occasions, respondents noted issues with determining his source of funds," said Michael Somps, Senior Deputy Attorney General in the Gaming Division of the Nevada Attorney General's Office. "Respondents conducted reviews of Bowyer regarding his lack of information on source of funds and at one point, they received an anonymous call saying he was a bookie. While Mr. Bowyer's account was suspended on two occasions, it was lifted when respondents received information deemed sufficient to reinstate Bowyer but they still saw issues with his source of funds."
Nevada Gaming Control Board members did state Caesars Entertainment employees were not directly involved, even though enough wasn't done to prevent this from happening.
"It's important to state that there is no evidence of any Caesars employee engaging in any intentional conduct," said Mike Dreitzer, Chairman of the Nevada Gaming Control Board. "This was a case of systematic negligence that led to this complaint and that stands in contrast to other matters this commission has previously heard where there have been bad actors who have acted intentionally within the employ of the licensees in questions."
The board also explained why they decided on a fine of $7.8 million.
"The amount was very intentional. Caesars win from Mr. Bowyer over the seven-year period came to approximately $2.6 million. This fine is right at three times the amount of the win that Caesars got from Mr. Bowyer," Dreitzer said. "So any notion or concern that Caesars will somehow benefit is not the case. They're paying three times more than they won over the period."
In addition to the fine, Somps said the company will have to follow 10 separate conditions.
They include revising and enhancing their anti-money laundering compliance programs, Caesars' chief legal officer or chief compliance officer must meet with the board to discuss compliance, Caesars will have to do comprehensive, in-person training for independent agents, hosts, player development executives, marketing dept staff, and those with credit authority exceeding $50,000, and they will have to put together an awareness campaign design to encourage reporting suspicious activity.
Some board members voiced concerns about if employees that were involved in the Bowyer incident still worked for the company but Caesars executives said those individuals "were removed from their roles."
Caesars leadership apologized to board members and said they have to do better as a company moving forward.
"The way our AML program operated in this incident was unacceptable," said Gary Carano, Executive Chairman of the Board for Caesars Entertainment. "We've understood a gaming license is a privilege, one that carries a responsibility to protect the health, safety, and morals of Nevada residents."
"We know this entire matter has been a stain on the state and we're embarrassed that we're part of it," said Tom Reeg, Chief Executive Officer at Caesars Entertainment. "My directive to our team is clear and I want to make sure that it's clear to you and on the record. We never sacrifice compliance for revenue. No customer is worth illegitimate profits. We didn't catch Bowyer and we should have ... This resolution has our full commitment and I will assure you we will deliver."