Las Vegas Sands Reaches Agreement with Nevada Regulators

By Alexandra Berzon 

Nevada regulators said casino giant Las Vegas Sands Corp. violated state gambling laws by operating in an "unsuitable manner," basing their decision on previously announced federal allegations that the company violated money-laundering and bribery-law accounting provisions in its Macau and Las Vegas casinos.

The company agreed to pay the state a fine of $2 million without admitting or denying guilt, according to a pending settlement agreement. That agreement will go before the Nevada Gaming Control Board for approval, officials said. A formal complaint was released by Nevada gambling regulators on Wednesday.

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

Las Vegas Sands last month agreed to pay $9 million to settle Securities and Exchange Commission allegations that it had poor accounting controls in its China operations, particularly for money paid to a consultant. Those allegations focused primarily on the company's sponsorship of a Chinese basketball team, plans to develop a business center in Beijing and a Macau ferry deal.

The company continues to cooperate with a Justice Department investigation into related matters, Mr. Reese said.

The Nevada allegations and settlement announced Wednesday are also linked to a settlement that Las Vegas Sands signed in 2013 with the Justice Department. Under the agreement, Sands avoided criminal prosecution but agreed to make a $47 million payment and accept the Justice Department's assertion that the company failed to report suspicious financial activity by one of its big gambling customers.

The Nevada Gaming Control Board has been investigating the Sands's accounting matters for years but had indicated it would wait until after federal agencies handled the same matters before taking action. Nevada law allows regulators to take broad action in response to allegations of violations of gambling law, including revoking casino licenses, but such actions are extremely rare.

Write to Alexandra Berzon at [e-mail]

(END) Dow Jones Newswires

May 11, 2016 21:49 ET (01:49 GMT)

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