Flinging Resorts World Las Vegas CEO Scott Sibella to the wolves might not have saved Genting Group‘s bacon—and may have inflicted collateral damage on MGM Resorts International. According to the New York Post, the Sibella revelations have upset the once-universal assumption that Resorts World New York and MGM Empire City were juiced into casino licenses when ones for the New York City area are (eventually) awarded. Contacted by the Post, Genting elaborated on its previous comments in re Sibella by saying that he was given the chop for “failing to disclose certain information required under company policies.” Which deepens the mystery rather than explaining it. Genting’s gnomic statement was not elaborated upon.
Although the Post thinks Genting, by scapegoating Sibella, is out of the woods, new evidence (see below) suggests otherwise. The paper continues, “The picture may be more complicated for MGM, which now may have questions to answer about what happened on Sibella’s watch several years ago.” That’s as it should be … but why would Resorts World, where the malfeasances were more recent, get a free pass? “Ethics is going to be a huge deal in deciding who gets the licenses,” said a Post source. “The ethics and the relationships with the communities where they are putting their casinos is where this is going to be fought and won.”
Ace reporter Dana Gentry has outpaced the mainstream media on this story. The Las Vegas Review-Journal and its Sunsert are currently whistling a happy tune by talking up the Dec. 13 Fontainebleau opening and the controversial Las Vegas Grand Prix. Move along, folks, nothing to see here. Gentry’s latest coup has been to obtain a copy of a synoposis of a wide-ranging federal subpoena served upon Resorts World LV. The subpoena identifies 12 targets and demands a hefty set of internal communications.
According to General Counsel Gerald Gardner, it “relates to policies, procedures, and practices of the Company’s Casino Operations (including sports book and poker), Casino Marketing, Finance (including Cage and Credit), and Compliance Departments. The subpoena seeks documents relating to the Company’s Anti-Money Laundering (AML) policies, Know Your Customer (KYC) practices, policies and practices relating to extensions of credit, comps or other benefits, use of promotional chips, and other customer transactions.” Hmmm … money laundering? Small wonder that Homeland Security is involved in this.
Anyway, you see why Genting might not be in the clear after all. Gardner warns Resorts World LV employees against document destruction, saying they have to take “adequate” measures to see that records are maintained. The Nevada Gaming Control Board claims to be investigating the casino but so far has failed to explain why it let a convicted felon manage its (since closed) Tacos El Cabron. Translating as “Tacos of the Asshole,” it embodies the rule-flouting attitude that seems to have prevailed at Resorts World LV. The NGCB also was asleep at the switch when undesirable individuals Robert Alexander and David Chesnoff were gambling at Resorts World. Gov. Joe Lombardo‘s desire to deregulate the casino industry would appear, if there is accountability in Nevada, to have blown up in his face.
Could Formula One racers be driving past picket lines? It might happen. Lost in last week’s Sibella furor was the quiet expiration of the collective bargaining agreement covering MGM, Caesars Entertainment and Wynn Resorts, along with myriad other casinos. Although operators have been raking it in hand over fist since the Covid-19 pandemic ended, they don’t appear to be in a generous mood toward the Culinary Union and Bartenders Union, judging by the slow pace of talks and apparent lack of urgency on the casinos’ part. A strike vote will be held Sept. 26 and we don’t expect it to go in Big Gaming’s favor. Only Fontainebleau is in the clear, having agreed to card-check unionization that will keep the Culinary pacified. There hasn’t been an industry-wide strike in 39 years. Or are the owners eager nostalgic for the old days before labor peace prevailed?
Today would have been the day when the Seminole Tribe starting taking sports bets again at its casinos in Florida. That was, however, before the owners of Magic City Casino lobbed a Hail Mary pass to the Supreme Court, asking it to overturn a federal appeals court ruling that upheld the compacts that Gov. Ron DeSantis (R) signed with the Seminoles, specifically as they pertain to sports wagering. Calling the agreement a “blueprint for expanding gaming outside of Indian lands,” West Flagler Gaming asserts that it “enables an extreme shift in public policy on legalized gaming that, once started, may be difficult to stop.” West Flagler is absolutely right and the Supremes should smother this baby in the crib. By interpreting “tribal lands” to extend throughout cyberspace, the Washington, D.C., appellate court perverted the meaning of the Indian Gaming Regulatory Act and if the ruling stands it’s Katie, bar the door. Regardless of its final decision, given the immense ramifications of the Seminole compact, SCOTUS has a responsibility to give West Flagler its day in the high court.
Quote of the Day: “Transcending aspirations and creating the unforgettable. That and 36 bars and restaurants is the Fontainebleau formula for success. And it only took 15 years to develop.”—Ken Adams
Florida Gov. DeSantis is many things, some of which are printable, but (D) is not one of them. He is most definitely not a Democrat.
A slip of the finger, Ray. Forgive me.
I’m sure we’re both among the people who’d like to give DeSantis the finger.
Keep up the great work!