Leadership Overhaul at Resorts World Las Vegas Amid Money Laundering Probe

Resorts World Las Vegas has announced sweeping leadership changes as it navigates a money laundering investigation that has cast a shadow over the property’s operations. Alex Dixon has been named the new CEO, with a revamped board of directors led by industry veteran Jim Murren. These moves, detailed in a December 5 press release, represent a strategic effort to stabilize the casino’s leadership and address regulatory scrutiny as the Nevada Gaming Control Board (NGCB) intensifies its investigation into allegations of compliance failures.

A New Leadership Team

The newly appointed board of directors brings a wealth of expertise to the table. Jim Murren, former chairman and CEO of MGM Resorts and current chair of the UAE’s General Commercial Gaming Regulatory Authority (GCGRA), will lead the board. His experience is expected to provide critical guidance as Resorts World works to strengthen its internal controls. Other members include AG Burnett, former chair of the NGCB; Michelle DiTondo, a former MGM Resorts executive; and Kong Han Tan, president and COO of parent company Genting Berhad.

Alex Dixon, a Las Vegas native, will assume the role of CEO on January 16, 2025. Dixon, previously the CEO of Q Casino & Resort and the Dubuque Racing Association in Iowa, brings deep industry experience and a reputation for effective leadership. His appointment signals Resorts World’s commitment to rebuilding its operational integrity and regaining public and regulatory trust. Genting CEO Kok Thay Lim expressed confidence in Dixon, emphasizing the importance of the new leadership team in achieving the company’s long-term goals.

Allegations and Ongoing Investigation

Resorts World’s leadership overhaul comes amid serious allegations stemming from an NGCB complaint filed in August 2024. The 12-count complaint accuses the casino of enabling individuals with suspected ties to illegal bookmaking and organized crime to launder money through its operations. Key figures in the investigation include Mathew Bowyer, a California-based illegal bookmaker accused of laundering millions through the casino, and Ippei Mizuhara, a former interpreter for MLB star Shohei Ohtani, who allegedly stole $17 million to pay off gambling debts owed to Bowyer. The investigation has highlighted significant lapses in Resorts World’s anti-money laundering protocols.

The casino’s internal controls are under scrutiny, particularly for allowing Bowyer’s wife, employed as a personal host at the property, to facilitate large transactions for her husband. Regulators allege these failures violated Nevada’s stringent gaming compliance regulations. With Bowyer facing up to 18 years in prison and his sentencing set for April 2025, the NGCB has recommended possible penalties for Resorts World, including fines, license suspension, or increased state oversight.

Financial Strain and Reputation at Stake

The ongoing investigation has taken a toll on Resorts World’s financial performance. The casino reported $177 million in revenue for Q3 2024, an 18% drop from the previous quarter. EBITDA plummeted by 68% to $16 million, underscoring the financial pressures linked to regulatory challenges and reputational damage. The company is expected to respond to the NGCB’s complaint by December 9, a decision that could have significant financial implications if penalties are imposed.

Fallout from Past Misconduct

The investigation has also brought renewed attention to former Resorts World president Scott Sibella, who was fired in September 2024 after the allegations surfaced. Sibella, who previously served as president of MGM Grand, had pleaded guilty to anti-money laundering violations tied to an illegal bookmaker during his tenure at MGM Resorts. These past infractions have raised questions about leadership accountability, though Resorts World has declined to address any potential connections between Sibella’s misconduct and the oversight of Jim Murren, who was MGM Resorts CEO during that time.

Looking Ahead

The leadership changes at Resorts World represent a pivotal moment for the casino as it seeks to recover from the investigation’s fallout. With Alex Dixon at the helm and a new board of seasoned industry leaders, the company aims to rebuild its reputation and strengthen its compliance framework. However, the path forward remains fraught with challenges as regulators weigh their response to the NGCB’s findings and the casino works to restore confidence among stakeholders.

Resorts World’s ability to navigate this crisis will serve as a litmus test for its long-term viability, particularly as it strives to recover from the financial and reputational damage inflicted by these allegations. The coming months will be critical as the company works to implement structural reforms, address regulatory concerns, and reestablish itself as a leader in the competitive Las Vegas gaming market.