Caesars to pay $7.8M over AML failures linked to bookie Matt Bowyer
Caesars Entertainment has agreed to pay a $7.8 million fine after Nevada regulators accused the company of repeated anti-money laundering failures tied to California bookmaker Mathew Bowyer. Caesars continued to entertain Bowyer at its facilities, including Caesars Palace in Las Vegas, despite years of internal warnings about unverifiable income and high-risk activity.
Caesars is under fire
Bowyer, 50, began serving a one-year federal sentence in October. Once considered one of America’s biggest bookies, he made headlines for handling over $325 million in bets from Shohei Ohtani’s former interpreter, Ippei Mizuhara. Internal reviews repeatedly cited Caesars’ inability to verify Bowyer’s source of funds, yet he wagered at Caesars Palace, Harrah’s Southern California, and Harveys Lake Tahoe for years. Despite years of internal warnings about Bowyer’s unverifiable income and high-risk status, Caesars allegedly continued to entertain him at key properties, according to a five-count, twenty-one-page lawsuit.
According to reports, the infractions took place between early 2024 and before 2017. If approved on 20 November, the fine would be the third-largest AML penalty this year, behind Resorts World ($10.5M) and MGM ($8.5M).
Key allegations against Caesars Entertainment
Regulators have cited five major failings in Caesars’ handling of high-risk customer Mathew Bowyer: the casino accepted millions without verifying the source of funds, failed to enforce a ban imposed by other Las Vegas venues, ignored repeated red flags including media reports and high-risk classification, did not escalate the case to an AML officer, and never conducted a formal investigation or audit despite substantial transactions across its properties.
Nevada’s growing AML troubles
Nevada, long regarded as a leader in gaming regulation, is now grappling with a series of anti-money laundering (AML) scandals. The Caesars case is one of several recent enforcement actions, alongside Wynn Las Vegas paying a $5.5 million fine, complaints against MGM and Resorts World linked to similar issues involving Bowyer, and reports of an active investigation at Fontainebleau earlier this year.
In its statement, Caesars said it values integrity and compliance, cooperated fully with investigators, and is committed to strengthening anti-money laundering (AML) and Know Your Customer (KYC) practices.
Caesars stated, “At Caesars Entertainment, integrity and regulatory compliance are paramount. We fully cooperated with the Nevada Gaming Control Board throughout its investigation and are committed to maintaining strong anti-money laundering and ‘know your customer’ programmes.”
Regulatory response and oversight
Nevada regulators signalled stricter enforcement following recent AML failures. NGCB member George Assad expressed frustration, while NGC member Brian Krolicki called the fines a “clarion call.”
New NGCB chair Mike Dreitzer warned that repeated violations could lead to stricter penalties. Regulators indicate that lenient penalties may be a thing of the past. He explained, “Fines make headlines, but at the end of the day, from my perspective, it’s even more important that the operators, the licensees, are acting in a corrective way, and that we are regulating and verifying that as we go along. Certainly, we are not afraid to continue to ramp up enforcement, if that means fines, whatever makes sense.”
Caesars faces setbacks
The AML complaint adds to what has been a challenging year for Caesars. Its share price dropped below $20, falling 41 percent year-to-date and 50 percent over the past 12 months, while debt climbed to $11.9 billion, higher than Wynn and MGM. Caesars Digital continues to outperform retail operations, but analysts anticipate a possible spin-off amid regulatory uncertainty.
The company also faces restrictions on entering prediction markets after warnings from Nevada regulators and suffered a major setback when its Times Square casino bid collapsed following public and union opposition. Overall, 2024 has been marked by financial strain and operational hurdles.
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