Sands Corporation Reach an Agreement with Nevada over Gambling Law Violations

Nevada regulators have accused casino giant, Las Vegas Sands Corp. of violating state gambling laws by operating in an “unsuitable manner;” this decision was based on a previously announced federal allegations against the company, which stated that the Sands had violated money laundering and bribery law accounting provisions in both their Macau and Las Vegas casinos.

About the Sands Corporation

Las Vegas Sands Corp, the American casino and resort operating company owns and operates several resorts in the USA and Asia. Among its properties in the USA are two resorts on the Las Vegas Strip, The Venetian and The Palazzo, as well as the Sands Casino Resort in Bethlehem, Pennsylvania. In Asia, Sands owns Marina Bay Sands, located in Singapore and The Sands Macau, The Venetian Macau, The Plaza Macau, Four Seasons Hotel and apartments, all located in Macau, China. Headquartered in Paradise, Nevada, the company was founded by Chairman and CEO, Sheldon Adelson in 1988.

Settled fine

According to a pending settlement agreement, Sands Corp have been fined $2 million, which they have agreed to pay to the state without admitting or denying guilt. Officials have reported that the agreement will go before the Nevada Gaming Control Board for approval; a formal complaint was released by Nevada gambling regulators on Wednesday.

Ron Reese, a spokesperson for the Las Vegas Sands, said, “The company cooperated fully with the Nevada Gaming Control Board and looks forward to a resolution of this matter.”

Not the only trouble

Last month, Las Vegas Sands also agreed to pay $9 million to settle allegations with the Securities and Exchange Commission, which claimed that the company had poor accounting controls in its Chinese operations, taking particular note of money that was paid to a consultant. The accusations by the Securities and Exchange Commission largely focused on the sponsorship of a Chinese basketball team by Sands, the plans to develop a business centre in Beijing, China and a ferry deal in Macau, China.

Reese added that, “The company continues to cooperate with a Justice Department investigation into related matters.”

The Nevada allegations and settlement, which were announced on Wednesday, are also connected to a settlement that the Las Vegas Sands had signed in 2013 with the Justice Department. While Sands escaped criminal prosecution under this agreement, they also agreed to make a payment of $47 million and accept Justice Department’s assertion that they had failed to report suspicious financial activity by one of its big gambling customers.

The Nevada Gaming Control Board, which has been investigating the Sands’ accounting matters for several years have specified that they were waiting for the federal agencies to finish their dealing surrounding the same matters, before taking any action. While it is allowed under Nevada law for regulators to take extensive action in response to contentions of violations of gambling laws, including revoking of casino licenses, it is extremely rare that such harsh punishment is issued.

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