MGM Resorts International has agreed to pay an $8.5 million fine to Nevada regulators following an investigation into breaches of anti-money laundering (AML) regulations. This penalty, pending approval by the Nevada Gaming Commission, would be one of the state’s largest fines ever. The Nevada Gaming Control Board (NGCB) filed a 10-count complaint focused on former MGM Grand President Scott Sibella’s failure to prevent illegal gambling and improper handling of large cash transactions at MGM Grand and The Cosmopolitan.
Investigations revealed that Sibella allowed Wayne Nix, a former minor league baseball player and illegal bookmaker, to receive free perks while wagering millions in illicit funds and carrying substantial cash in plain bags. Despite red flags since 2015, no reports were filed, and Nix continued his activities. Another convicted bookmaker, Mathew Bowyer, also gambled at MGM properties from 2015 to 2018, raising concerns about his financial dealings and a customer complaint of theft for illegal betting.
MGM Resorts acknowledged the settlement, emphasizing their cooperation with authorities and highlighting changes such as enhanced AML training and improved reporting systems for suspicious activity. This state fine follows a $7.45 million federal penalty settled by MGM in a related non-prosecution deal, totaling $16 million in penalties.
Sibella, dismissed from Resorts World Las Vegas in 2023, admitted to violating the federal Bank Secrecy Act. He faced a year of probation, a $9,500 fine, and was placed on Nevada’s “Gray List,” preventing him from obtaining gaming licenses for five years. Resorts World Las Vegas paid a $10.5 million fine for regulatory issues under his leadership.
These developments emphasize the severe penalties for non-compliance with AML regulations and the extensive measures MGM Resorts and related entities must implement to prevent future breaches.
