Brian O’Dwyer made headlines 11 months ago when the New York gaming regulator flagged an extensive money laundering probe as a possible obstacle for several contenders seeking a downstate New York casino license.
Speaking at this week’s Racing and Gaming Conference in Saratoga, O’Dwyer, chairman of the New York State Gaming Commission, reaffirmed the need for a comprehensive evaluation of applicants’ character, integrity, and operational capability to guarantee casinos operate in full compliance with New York law.
In his remarks on Tuesday, O’Dwyer pointed out that several casino operators have previously failed to meet their legal responsibilities regarding anti-money laundering measures.
“When reviewing applications, we will take those allegations into account, along with any other relevant concerns tied to licensees,” O’Dwyer said, referencing Nevada cases where operators were investigated and fined. “Only candidates that meet the highest levels of integrity and operational standards will be granted a license.”
Last September, O’Dwyer told the New York Post that allegations against multiple Las Vegas casinos were “particularly troubling,” citing what he described as a “culture of non-compliance” in overlooking suspicious activity at their venues.
Over the past year, three Las Vegas casino operators – MGM Resorts, Wynn Las Vegas, and Resorts World Las Vegas – have agreed to pay fines to the Nevada Gaming Commission to resolve anti-money laundering violations. Notably, MGM and Resorts World are among the eight applicants seeking a license in New York.
Neither a ‘rubber stamp nor a potted plant’
On Tuesday, O’Dwyer dedicated much of his speech to explaining New York State’s process for awarding up to three downstate casino licenses. Currently, Local Community Advisory Committees (CAC) are reviewing proposals from eight bidders hoping to establish casinos in the southern part of the state. This week, public hearings were held in Yonkers and Manhattan to discuss bids from MGM Empire City and Caesars Palace Times Square.
By 30 September, the committees must vote on the projects within their jurisdictions. Only applications that secure approval from their local committee will move forward for state-level review. The New York Gaming Facility Location Board is scheduled to decide by 1 December which applicants should be recommended for licenses. The state gaming commission is expected to issue up to three licenses by 31 December.
O’Dwyer strongly rejected the idea that any bidder should be seen as a guaranteed winner of a license.
“I take this responsibility very seriously, as the decision will determine who operates in New York for many years to come,” O’Dwyer said, emphasizing his point with a fist on the table. “The commission is neither a rubber stamp nor a potted plant.”
Standards for licence disqualification
Speaking before a full audience at the Saratoga Hilton, O’Dwyer explained that the New York commission is essentially bound to accept the determinations of the Gaming Facility Location Board, noting that those decisions are generally considered “non-appealable.”
Under the outlined process, the commission will have roughly 30 days to review the board’s recommendations. During that time, O’Dwyer said, it is the commission’s legal duty to confirm whether applicants meet the state’s strict licensing standards.
In earlier comments to the New York Post, O’Dwyer expressed concern over reports that some Nevada casinos had “negligently” overlooked suspicious activity in pursuit of financial gain. Still, he stressed that while such anti-money laundering violations are troubling, they do not automatically disqualify companies from securing a license.
Last fall, a Resorts World spokesperson told the Post that allegations involving certain executives at one property have “no overlap” with operations at the company’s other locations.
Sentencing for illegal bookmaker nears
In March, the Nevada Gaming Commission imposed a $10.5 million penalty on Resorts World Las Vegas, marking the second-largest fine ever issued against a casino in the state. Regulators found the property had permitted several illegal bookmakers to gamble on-site, including Matt Bowyer, who reportedly managed $325 million in sports bets for Ippei Mizuhara, former interpreter for Shohei Ohtani.
Regulatory filings revealed Bowyer lost at least $7.9 million at the casino across 80 visits. He is scheduled to be sentenced on 29 August on charges of transactional money laundering.
Under New York’s Racing, Pari-Mutuel Wagering and Breeding Law, the same disqualification standards used during the upstate casino licensing process more than a decade ago will apply to the current downstate bidding round. Roughly a dozen criteria could disqualify an applicant, including “flagrant defiance” of investigations into gaming-related crimes, official corruption, or organized crime ties.
The bidding process is expected to generate significant revenue for New York. Each successful applicant will be required to pay a $500 million licensing fee upfront.
