$7.8M AML Penalty Adds to Caesars’ Mounting Regulatory Troubles

Caesars Entertainment is facing renewed scrutiny after Nevada regulators issued a $7.8 million fine relating to longstanding anti-money laundering lapses connected to California bookmaker Mathew Bowyer. The settlement comes at a time when Nevada regulators are stepping up enforcement across the industry, tightening their focus on weak AML controls at several leading US casino operators.

Bowyer, who is now serving a federal prison sentence, was able to wager millions of dollars at well-known Caesars properties for years, despite internal staff repeatedly flagging his gambling activity as suspicious and difficult to verify. Regulators say these warnings did not translate into timely action, allowing Bowyer to continue playing at locations including Caesars Palace, Harrah’s Southern California, and Harveys Lake Tahoe. The Nevada Gaming Commission is set to review the settlement later this month.

Long-Term Oversight Issues Come to Light

The enforcement filing outlines a timeline that regulators say stretches back to 2017. Caesars’ own compliance teams reportedly questioned Bowyer’s source of funds multiple times over several years, noting that his income could not be verified and that his spending was inconsistent with the information he provided. Despite these concerns and even though other Las Vegas casinos had already cut ties with him, Bowyer remained active within the Caesars portfolio.

His account was suspended more than once, but each time, Caesars reinstated him after receiving tax returns or documents claiming gambling winnings from other venues. According to regulators, these documents did not meaningfully address ongoing doubts about Bowyer’s financial background. Internal records also show that some of Bowyer’s claimed business ventures reported no revenue at all by 2022.

It wasn’t until January 2024, after news reports revealed that federal investigators raided Bowyer’s home, that Caesars ultimately banned him.

Bowyer’s illegal bookmaking operation drew national attention due to his involvement with Ippei Mizuhara, the former interpreter for MLB star Shohei Ohtani. Mizuhara stole millions from Ohtani to pay off gambling debts, though Ohtani was not implicated in the activity.

What Regulators Identified in the Case

Rather than focusing on a single misstep, the complaint describes a broad failure to follow expected AML procedures. Among the issues highlighted were inadequate source-of-funds reviews, missed opportunities to escalate risk concerns, and repeated inaction despite negative information coming from both internal and external sources. Regulators also said Caesars did not conduct a full investigation into Bowyer’s activity, even as his risk rating remained high for years.

If finalized, the $7.8 million settlement would be one of Nevada’s most significant penalties in 2025, though not the largest. Resorts World paid $10.5 million earlier this year, followed by MGM’s $8.5 million settlement, both of which also involved Bowyer.

Nevada’s Wider AML Crackdown

The Bowyer cases are part of a larger enforcement wave that has swept the state’s casino industry this year. Combined AML penalties have already exceeded $30 million, and several additional investigations are still ongoing. Wynn Las Vegas was previously fined for unrelated AML deficiencies, and regulators have made it clear that they expect operators to adopt stronger, more consistent controls.

Nevada Gaming Control Board chair Mike Dreitzer has emphasized that fines alone are not the end goal. Regulators want casinos to demonstrate that they are proactively correcting deficiencies rather than waiting for enforcement actions to prompt change. The repeated Bowyer-related failures across multiple operators have underscored ongoing weaknesses in how source-of-funds checks and risk escalations are handled.

A Tough Year Gets Tougher for Caesars

For Caesars, the AML settlement lands during a period of financial and strategic difficulty. The company has reported soft results throughout the year, and its performance in Las Vegas declined noticeably in the third quarter. Analysts have increasingly pointed to Caesars’ digital division as the company’s strongest asset, with speculation growing about whether the business could eventually be separated from its land-based operations.

Meanwhile, competitive pressures continue to mount. Caesars remains limited in its ability to explore prediction-market partnerships due to warnings from the Nevada regulator, an area where rival brands have pushed ahead. The company also suffered a significant setback with its New York ambitions when a local community board rejected its proposal for a Times Square casino.

The operator’s share price has reflected these challenges, dropping more than 40 percent this year as its debt load climbs above $11 billion.

The AML case serves as yet another reminder of the regulatory risks that large operators face, and it adds further urgency for Caesars as it looks to reassure investors and regulators while stabilizing operations across its portfolio.