Caesars Hit With $7.8 Million Penalty Over Long-Running AML Failures Linked to Bookmaker Matt Bowyer

Caesars Entertainment is facing fresh regulatory pressure after agreeing to a $7.8 million penalty over years of anti-money laundering (AML) lapses tied to convicted illegal bookmaker Mathew Bowyer. Nevada regulators outlined extensive compliance failures across multiple Caesars-operated properties, marking the latest significant enforcement action in what has become a challenging year for some of the Strip’s biggest operators.

The Nevada Gaming Control Board (NGCB) filed a five-count, 21-page complaint detailing how Bowyer was able to gamble millions of dollars at some of the top US casinos operated by Caesars, including Caesars Palace, Harrah’s Southern California, and Harveys Lake Tahoe, despite repeated internal warnings about his unverifiable income and high-risk profile. The Nevada Gaming Commission will vote on the settlement at its meeting on 20 November, although regulators have approved every AML-related fine brought forward this year.

Years of Red Flags Ignored

The complaint outlines a consistent pattern dating back to 2017: internal reviews flagged Bowyer for lacking a legitimate, documented source of funds, yet Caesars continued to permit him to gamble large amounts year after year.

Regulators say Caesars had documented concerns as early as April 2017 and knew that two other Las Vegas casinos had already banned Bowyer. Even so, he remained an active player across Caesars’ properties for nearly seven more years.

Bowyer was suspended several times between 2019 and 2021 after compliance staff noted suspicious activity, unverifiable income, and his classification as “high risk.” Each suspension was reversed once Bowyer provided tax returns or claimed gambling winnings from other casinos. Regulators say those documents did little to resolve the underlying issues but were nonetheless accepted by the operator.

Internal reports also show that Bowyer deposited more than $4 million in front money in 2017 alone and accumulated millions in losses across subsequent years. By 2022, Caesars noted that three of the businesses Bowyer claimed to operate had no recorded revenue. Despite this, he continued to wager freely until January 2024, when the casino finally issued a ban. Regulators emphasised that the decision came only after media outlets reported a federal raid on Bowyer’s Orange County home.

Bowyer, once considered one of the largest illegal bookmakers in the US, is currently serving a 12-month federal sentence for operating an illicit gambling business, money laundering, and filing false tax returns. He drew national attention for handling hundreds of millions in wagers from clients, including bets from Shohei Ohtani’s former interpreter, Ippei Mizuhara, who stole money from the baseball star to cover gambling debts. Ohtani was not accused of wrongdoing.

Five Compliance Failures

The NGCB outlined five core failures by Caesars:

• Not establishing Bowyer’s source of funds
• Not banning him despite documented concerns
• Insufficient due diligence even after receiving negative information
• Not escalating the case to the casino’s AML officers
• Failing to conduct a full investigation into his activity

If approved, the $7.8 million fine will be the third-largest AML penalty issued in Nevada this year, behind Resorts World’s $10.5 million settlement and MGM Resorts’ $8.5 million fine—both also tied to Bowyer.

Part of a Larger AML Problem in Nevada

Nevada regulators are in the middle of one of the busiest enforcement periods in years, with more than $30 million in AML-related fines issued in 2025 alone. Wynn Las Vegas was fined $5.5 million earlier this year, and the NGCB is actively investigating additional cases, including one involving the Fontainebleau.

NGCB chair Mike Dreitzer, who stepped into the role in June, has signalled that repeat violations will be met with escalating penalties. Regulators say they want operators to show meaningful corrective action rather than relying on fines as a cost of doing business.

The cases linked to Bowyer have highlighted consistent problems across the industry: casinos failing to verify sources of wealth, inconsistent due diligence, and insufficient escalation to compliance officers.

A Difficult Year for Caesars

The penalty caps what has been a turbulent period for Caesars Entertainment. The company’s financial performance has been soft across all three quarters, with Las Vegas profits sliding sharply in Q3. Its digital division remains the strongest segment, but analysts expect a possible spin-off as it now outpaces the company’s retail casino business.

Caesars also faces competitive pressure from FanDuel, DraftKings, and others as they pursue prediction market partnerships. In this area, Caesars cannot participate due to clear warnings from Nevada regulators that such offerings could jeopardise state licensing. The operator also suffered a setback when a local community board rejected its push for a Times Square casino in New York after lengthy hearings.

Caesars’ share price has struggled throughout the year, falling below $20 and shedding more than 40% of its value year-to-date. Its debt load reached $11.9 billion in Q3, surpassing both Wynn and MGM.

The latest AML fine adds another challenge to an already difficult outlook, as the company tries to reassure regulators while stabilising its performance on the Strip.