Brian Sandoval, the chair of the Resorts World Las Vegas Board of Directors, told Nevada gaming regulators Wednesday the property has put its anti-money-laundering issues behind it and is in a “much better place” with “very bright” prospects.
Sandoval, former Nevada governor and current president of the University of Nevada Reno, was named to the Resorts World board a year ago and named chair in November to replace former MGM Resorts International CEO Jim Murren.
The Nevada Gaming Control Board recommended Sandoval, a former Gaming Commission chair, be licensed as a board member, along with AG Burnett, gaming attorney and former chair of the Gaming Control Board. In addition, it recommended licensing for Keong Hui Lim, executive director and deputy CEO, and CEO Kong Han Tan with parent company Malaysian-based Genting Berhad.
It’s been a tumultuous run for Resorts World Las Vegas, which opened in June 2021. Last year, it was fined $10.5 million by the Nevada Gaming Commission for catering to an illegal bookmaker. The property has also struggled financially over the years.
“Can you give some thoughts about how far things have come in such a short time (one year) with respect to the board, the property, and challenges they have overcome to continue to improve as a licensee in Nevada?” queried Gaming Control Board Chair Mike Dreitzer.
Sandoval responded that when he was asked to serve on the board, it was “a troubled time for the property” and in a short amount of time Resorts World brought on “some of the greatest individuals to run the property.”
Dreitzer brought up the AML issue and asked what has changed to prevent that from happening again.
Sandoval said there was a deep dive into how the AML issue happened, adding that given his background, it’s important to be compliant with all the state and federal rules and regulations. He told the regulators that they can be confident that going forward Resorts World will comply with everything that’s required.
“There’s an absolute culture of compliance on the property, not only from the board’s perspective, but from a property perspective,” Sandoval said. “We learned a very strong lesson. I’ve been incredibly impressed with the amount of resources and investment made in compliance training. The property is in a much different and better place than when I arrived, not because of me, but due to the efforts of the executive team and what they have done. I think you can be completely confident in what is happening at that property.”
Dreitzer asked Sandoval about the prospects of Resorts World and the north end of the Strip.
“A lot of headwinds are facing Las Vegas, not any of it the fault of many of the properties here in southern Nevada,” Sandoval said. “What we can control is that we have the best-quality team we can have on the ground. I can say we’ve recruited and brought on incredible people that are managing the property.”
Sandoval called the resort an amazing place that’s spotless with happy employees who are committed to its success.
“The prospects of the property are very bright and positive,” Sandoval said. “Things are moving in the right direction. We would certainly like to see more development and those are things we are looking to happen on that property. It is like polishing a diamond. It’s a really good place to be.”
Control Board member George Assad told Sandoval it’s not hard to figure out why he was chosen to be chair. He lauded the former governor’s stellar background and for being an excellent spokesperson for the property.
“The property is in really good hands, and if this board would have been in place at the time, it would have eliminated (the problems with AML),” Assad said. “The problems I have seen over the last three years, from MGM and Caesars to Resorts World and Wynn — properties we have had to deal with this AML issue —there has been a structural vacuum between the marketing and compliance departments, without anyone with unfettered authority to say we need to ban that person. At all these properties, there was a confusing silo effect. It needs to come down to one or two persons. Someone has to have ultimate authority and not be overruled by the chairman of the board or president of the property.”
Assad said filing a Suspicious Activity Report with the federal government doesn’t get properties off the hook. Instead, multiple filings are a warning for them to act.
Gaming attorney Jennifer Roberts serves as chief compliance officer and is empowered to take action, Burnett told regulators.
“The buck had to stop with somebody,” Assad said. “Now the buck will stop here. People who are individually responsible for AML protocols, a lot of them are no longer with that company. Individuals have to be accountable and responsible. This isn’t rocket science. If you’re filing multiple SARS, red flags should go up.”
Las Vegas has had a long history of catering to drug dealers, mobsters, and others who should have been banned by the properties, Assad said.
“It’s a new day and a new sheriff in town with a new board,” Assad said. “The party’s over. I’m glad to see Resorts World is on board with taking care of the dirty laundry and by doing that, hopefully there will be no federal intervention or gaming tax to fund a federal Gaming Commission. It sets the tone for the other gaming jurisdictions and that the past is the past. Today is a new day, and we have to do things differently.”
Despite numbers being down for Las Vegas, Assad said Resorts World is doing well and moving in the right direction financially.
“The downturn is in terms of numbers of people coming through the airport, but the gross gaming revenue numbers are phenomenal,” Assad said. “Maybe the high rollers are coming in and the lower-value players are not. Vegas is on a good path.”
Burnett said the Las Vegas economy goes up and down, but it always comes back.
“It’s strong and things will change,” Burnett said. “You have some of the best and brightest minds right now in Las Vegas and Reno, making changes and doing what they can to ensure success.”
