Resorts World Las Vegas Faces RICO Lawsuit

Resorts World Las Vegas has once again found itself in hot water due to an alleged racketeering scheme and illegal bookmaking. This follows earlier problems the property has faced.

Resorts World Las Vegas Under Fire

Resorts World Las Vegas is facing a federal Racketeer Influenced and Corrupt Organizations Act (RICO) lawsuit that targets former casino executives. According to the 95-page complaint, filed by high-stakes gambler Robert Cipriani and businessman James Russel, a number of former executives, including ex-president Scott Sibella and ex-vendor David Chesnoff, were involved in a racketeering scheme that enabled illegal bookmaking, money laundering, and witness tampering.

According to the court document, Cipriani, previously tipped off federal and state authorities about potential money laundering at casinos in Nevada, leading to a series of investigations and regulatory crackdowns. The complaint further suggests that these regulatory actions discovered a variety of alleged RICO violations.

Among other things, the complaint accuses Sibella and Chesnoff of participating in money laundering and other serious violations of state and federal laws. These included alleged witness tampering, including reported retaliation against Cipriani, who tried to sue Resorts World in 2024. This lawsuit, however, was ultimately unsuccessful.

Cipriani and Russel Seek Damages, Injunctive Relief

While Cipriani’s previous lawsuit failed to achieve a court win, regulators agreed that certain AML violations had indeed taken place. This led to a $10.5 million fine and the subsequent removal of several Resorts World executives.

Despite that, the current lawsuit states that the regulatory action failed to address the problem at its core and to properly take the casino’s alleged compliance shortcomings into account. The complaint pointed to Sibella’s guilty plea from 2024 when he admitted to failing to file a suspicious activity report during his time at MGM Grand. Cipriani and Russel say that this alludes to a broader compliance problem.

As a result of the alleged misconduct, the plaintiffs seek damages and injunctive relief, saying that the misconduct and racketeering harmed both Cipriani and Russel.

In the meantime, gaming authorities in Nevada just issued a block against Wayne Nix, banning him from all casinos in the state due to his participation in illegal betting rings connected to some of Las Vegas’ biggest casino hotels.