MGM Resorts Faces $8.5 Million Fine Amidst Major Money Laundering Scandal
In a significant turn of events, MGM Resorts International has consented to pay a staggering $8.5 million fine to Nevada regulators. This penalty arises from a troubling investigation where a former gaming executive permitted illegal bookmakers to wager millions at two of the company’s prominent Strip properties.
Unveiling the Allegations
The case centers around a 10-count complaint lodged by the Nevada Gaming Control Board on Thursday evening. It reveals a series of actions that not only violated Bank Secrecy Act regulations but also brought the spotlight on MGM’s former President, Scott Sibella. The details of the complaint can be explored further in the documents provided: complaint and settlement.
The Players Behind the Scandal
Nine counts within the complaint highlighted the gambling activities of Wayne Nix, a convicted illegal bookmaker and former minor league baseball player. The tenth count shifted focus onto a second individual, Mathew Bowyer, also a convicted illegal bookmaker. These high-stakes activities unfolded at the MGM Grand Las Vegas, where Sibella held the presidential position, as well as at The Cosmopolitan of Las Vegas. Astonishingly, bets were settled in cash—transactions that were never reported.
Insights from the Gaming Control Board
In a statement released via the social media platform X, Kirk Hendrick, Chairman of the Control Board, noted: “The proposed settlement also details numerous remedial measures implemented at MGM Resorts and its subsidiary gaming properties.” He emphasized that the settlement focuses primarily on enhancing the company’s anti-money laundering program and boosts training for employees regarding anti-money laundering requirements.
Closing the Chapter on Sibella’s Reign
If the Nevada Gaming Commission approves the settlement during its upcoming meeting, it will effectively close the chapter on the misconduct surrounding Scott Sibella. This comes shortly after Resorts World Las Vegas, under similar circumstances, agreed to pay a hefty $10.5 million fine—marking it as one of the most substantial penalties in Nevada’s history for comparable violations.
In 2023, Sibella was ousted from his position as president of Resorts World, which sparked a cascade of repercussions. He found himself blacklisted on the Nevada gaming agency’s "Gray List," prohibiting him from returning to the gaming industry for a minimum of five years. Sibella also faced a $10,000 penalty to cover investigative costs.
A Pattern of Penalties
This latest fine isn’t MGM Resorts’ first run-in with regulators. Last year, they agreed to pay $7.45 million in federal fines related to Sibella’s actions and the failures of their anti-money laundering compliance measures. In a federal courtroom, Sibella pleaded guilty for violating the Bank Secrecy Act, securing a probation period of one year while dodging prison time—yet still incurring a fine of $9,500.
Conclusion
As MGM Resorts seeks to navigate this turbulent period, this $8.5 million settlement underscores the ongoing scrutiny and regulatory challenges within the gaming industry. With enhanced measures now in place, the world will be watching to see if MGM can rehabilitate its reputation and foster a more compliant environment moving forward.
For further details on industry regulations and compliance, consider exploring resources from the Nevada Gaming Commission.
