Caesars Hit With $7.8 Million Fine for Allowing Illegal Bookmaker to Gamble

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Nevada gaming regulators have levied a substantial $7.8 million fine against Caesars Entertainment Inc. for permitting an illegal bookmaker to gamble at its properties for an extended period. The company’s top executives apologized to the Nevada Gaming Commission for the lengthy inaction and the embarrassment it caused the state’s gaming industry.

Key Takeaways

Caesars Entertainment Inc. has been fined $7.8 million by the Nevada Gaming Commission.
The fine stems from allowing illegal bookmaker Mathew Bowyer to gamble at Caesars properties without verifying his source of funds.
Caesars executives apologized for the company’s anti-money laundering program failures.
This fine is the fifth highest ever issued by the Nevada Gaming Commission.

Unacceptable Anti-Money Laundering Practices

The Nevada Gaming Commission voted 4-1 to approve the fine, which was determined to be roughly three times the documented amount Caesars won from Mathew Bowyer over seven years. Commissioner Rosa Solis-Rainey dissented, advocating for a higher penalty and questioning why it took seven years for Caesars to identify the wrongdoing.

Top Caesars executives, including Board Chair Gary Carano, CEO Tom Reeg, and Chief Legal Officer Ed Quatmann, appeared before the commission to offer apologies. Carano stated, "the way our (anti-money-laundering) program operated in this instance was unacceptable." Reeg added, "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."

A Pattern of Violations

This action against Caesars is part of a series of disciplinary measures involving Mathew Bowyer. In March, Resorts World Las Vegas and its parent company, Genting Berhad, were fined $10.5 million, and MGM Resorts International faced an $8.5 million fine in April for similar violations related to Bowyer or other illegal bookmakers.

According to the complaint filed by the Nevada Gaming Control Board, Bowyer, who is currently serving a prison sentence, wagered and lost millions of dollars at Caesars properties between 2017 and 2024. Despite being categorized as "high risk" by Caesars starting in June 2019, the company failed to adequately verify his source of funds.

Strengthening Compliance Measures

As part of the settlement, Caesars agreed to enhance its anti-money-laundering and "know your customer" procedures across its properties in Nevada and California. The company issued a statement affirming its commitment to maintaining strong compliance programs and continuously improving its practices.

While Caesars did not admit or deny the allegations, the substantial fine underscores the regulators’ commitment to upholding the integrity of the state’s gaming industry. The $7.8 million penalty ranks as the fifth highest fine ever imposed on a Nevada licensee.