The Nevada Gaming Commission signed off on Michelle Ditondo to be licensed as a member of the year-old Resorts World Board of Directors, with the expectation the board will help the property overcome its issues with operations and compliance.
Last year, the Commission fined Resorts World $10.5 million for catering to an illegal bookmaker. In November, Genting Berhad reported Resorts World Las Vegas suffered another depressed quarter, with revenue declining 1% year-on-year and 3% quarter-on-quarter to $175 million. The property also fell to an EBITDA loss of $12 million compared with a gain of $16 million a year earlier.
Nomura analysts stated that the sub-par earnings were likely due to “ongoing business recalibration and management/policy changes.”
Genting said that its third-quarter results were impacted by lower visitation and macroeconomic uncertainty, which affected overall visitation volume across Las Vegas.
The Resorts World board provides oversight and guidance to the property’s leadership team, including on such matters as capital investments, compliance, and strategic planning.
“We’ve been very focused in the last year on creating a strong culture of compliance at the property and establishing strong corporate governance,” Ditondo said.
Commissioner Brian Krolicki called it a “wonderful decision” for Resorts World to put Ditondo on the board . He said she’s well qualified.
“Keep your eyes wide open and speak out,” Krolicki said. “A lot of people are watching for the success of this. This is a difficult time. The cash flows are always a challenge, and you’ve got your work cut out for you.”
Ditondo said the biggest changes since the board launched have been in property leadership with Carlos Castro as president. Most of the leadership team has turned over in the last year.
“We’ve been focused on bringing in leaders who are confident, with a strong sense of gravitas to challenge us when needed,” Ditondo said. “We have full confidence in the leadership team.”
The other focus was on corporate governance, with the board meeting at least once at month. It does a financial review of the property and discusses issues that have surfaced within operations, along with getting a report from the chief compliance officer.
Former MGM Resorts International CEO Jim Murren serves as chairman emeritus and is no longer part of board meetings, Ditondo said. Former Gov. Brian Sandoval took over as chairman from Murren.
