Caesars Faces $7.8M AML Penalty as Nevada Tightens Scrutiny of Casino Compliance

Caesars Entertainment is once again under the microscope after Nevada regulators issued a $7.8 million penalty tied to long-running anti-money-laundering gaps involving California bookmaker Mathew Bowyer. The case adds to a turbulent period for the casino giant, arriving as state officials sharpen their focus on how operators assess high-risk gamblers and verify financial backgrounds.

The Nevada Gaming Control Board (NGCB) submitted a detailed complaint outlining how Bowyer, now serving a federal sentence, was able to gamble substantial sums at Caesars-operated venues for several years without his source of funds being adequately verified. Despite repeated red flags raised internally, Bowyer continued to play at some of Caesar's top US casinos, including Caesars Palace, Harrah’s Southern California, and Harveys Lake Tahoe. The Nevada Gaming Commission will decide later this month whether to finalize the settlement, though every AML-related fine brought forward this year has been approved.

How Caesars Missed Warning Signs

According to the regulatory filing, concerns about Bowyer date back as far as 2017. Compliance staff noted multiple times that his declared income did not align with the scale of his gambling activity, yet the operator allowed him to remain an active patron. The issue grew more pronounced as other Las Vegas casinos cut ties with Bowyer, but Caesars kept him in play despite knowing he had been banned elsewhere.

Bowyer’s account was frozen and reopened several times between 2019 and 2021. Each reinstatement reportedly followed the submission of tax records or claims of winnings from other casinos. Regulators argue that these documents did little to clarify the legitimacy of his finances. By 2022, internal evaluations found that businesses Bowyer claimed to own showed no recorded revenue, yet no permanent ban was issued.

It wasn’t until January 2024, following widespread media coverage of federal agents raiding Bowyer’s home in Orange County, that Caesars finally barred him from all properties.

Bowyer became a central figure in a national sports-betting scandal after investigators found he had handled bets for Ippei Mizuhara, the former interpreter for MLB star Shohei Ohtani. Mizuhara stole millions from Ohtani to settle gambling debts. Ohtani was not implicated, but the incident intensified public attention on Bowyer’s operations.

Regulators Cite Multiple Breakdowns

The NGCB complaint points to a pattern of missed responsibilities rather than a single failure. Investigators say Caesars repeatedly fell short of core AML obligations, noting that the operator did not adequately confirm Bowyer’s source of funds and failed to escalate concerns to senior compliance staff when his activity raised red flags. Regulators also found that Caesars did not act promptly when negative information surfaced, did not conduct a full review of Bowyer’s gambling behaviour, and ultimately did not apply a ban in line with industry expectations, even as his risk rating remained high for years.

If the Commission signs off on the settlement, Caesars’ penalty will rank among Nevada’s most considerable AML fines of 2025, surpassed only by the settlements issued to Resorts World and MGM Resorts, both of which were also linked to Bowyer.

Part of a Much Larger Compliance Push

The Caesars case is one chapter of a broader regulatory shift sweeping through Nevada’s casino sector. State authorities have imposed more than $30 million in AML-related penalties so far this year, targeting inconsistent due diligence practices and failures to assess high-risk patrons properly. Regulators have hinted that they expect operators to demonstrate genuine improvements rather than treating fines as routine business expenses.

Recent enforcement actions have flagged common issues across the industry: incomplete source-of-wealth reviews, weak escalation procedures, and limited follow-through once potential problems are identified. The Bowyer cases, involving several major operators, have amplified concerns about systemic weaknesses in how casinos evaluate patrons with questionable financial backgrounds.

A Difficult Backdrop for Caesars

The fine arrives during a period of instability for Caesars Entertainment. The company’s land-based results have softened through the year, with its Las Vegas segment posting a noticeable dip in Q3. Analysts continue to view Caesars Digital as the company’s strongest performer, raising ongoing speculation about whether the online division could eventually be separated from the rest of the business.

Caesars is also dealing with challenges beyond Nevada. One of the more significant setbacks this year occurred in New York, where the company’s ambitious plan to build a casino in Times Square encountered strong resistance. A key community board rejected the proposal after months of debate, slowing the project considerably and highlighting the political and local support hurdles in one of the most competitive casino licensing races in the country. The stalled bid adds another layer of uncertainty at a time when the company is already juggling regulatory pressure and financial strain.

Outside Nevada, Caesars is also navigating competitive and regulatory hurdles. The operator remains constrained from pursuing prediction-market partnerships—an area where rivals like DraftKings and FanDuel are gaining traction, due to warnings from Nevada regulators about potential licensing risks. Meanwhile, Caesars’ bid for a Times Square casino stalled after local opposition and a failed community board vote.

With its share price down sharply and debt now exceeding $11 billion, the company faces mounting pressure to restore investor confidence. The latest AML case underscores the heightened compliance expectations across Nevada’s gaming landscape and adds yet another challenge to an already difficult year.