MGM Resorts has agreed to a $8.5 million stipulated agreement after failing to adhere to anti-money laundering rules by allowing illegal bookmakers to gamble at its properties.
The international hospitality and gaming giant reached an agreement with the Nevada Gaming Control Board (NGCB) following improper business practices by former MGM Grand President Scott Sibella, who knowingly failed to report suspicious transactions by illegal bookmaker Wayne Nix. According to court documents, Nix used illicit cash proceeds from his illegal bookmaking business to gamble at Las Vegas casinos.
The casinos included MGM Grand and The Cosmopolitan.
Sibella’s misconduct at MGM Resorts
Sibella and two other MGM employees were aware of Nix’s use of illegal proceeds at MGM Grand and also provided the bookie with complimentary rooms, meals, golf trips and a maker account. Sibella had a duty to report Nix’s illicit transactions at the casino by submitting a Suspicious Activity Incident Report but took no action despite his training.
“Beginning in 2017, MGM Grand compliance personnel first became suspicious of Nix’s source of income after Nix presented $50,000 in cash at the cage of an MGM Grand property because small denominations comprised more than $5,000 of the cash,” read the complaint. “MGM Grand compliance investigated Nix’s business and determined that it could not substantiate where Nix obtained such a large amount of cash.”
In less than four years, Nix gambled over $4 million of the illegal proceeds at MGM Grand.
Sibella would also allow similar illicit wagering as an executive at Resorts World. The NGCB’s complaint also details the illicit wagering of Matthew Bowyer, another bookie.
Bowyer, who is tied to the Shohei Ohtani and Ippei Mizuhara gambling scandal, also used illicit cash proceeds to gamble at Resorts World while under Sibella’s leadership.
Sibella was later fired by Resorts World in 2023 for “violating company policies.”
Last May, Sibella was sentenced by a U.S. District Court judge to one year of probation after pleading guilty to failing to file reports of suspicious transactions at the casinos, a requirement of the Bank Secrecy Act. He was facing up to five years in prison and a $250,000 fine. Sibella has also had his gaming license revoked by the NGCB.
Nix has also been charged with running an illegal operation. He reached a plea agreement in 2022 and has pleaded guilty to one count of conspiracy to operate an illegal gambling business and one count of subscribing to a false tax return. He has yet to be sentenced.
The stipulated agreement is expected to be approved by the NGCB as early as next week. The deal sees MGM Grand voluntarily waive its right to a public hearing on its charges. The cash proceeds from the settlement will be allocated toward Nevada’s General Fund.
If approved, MGM Grand is required to pay the fine within two business days of acceptance.
Series of hefty fines
In 2024, MGM and The Cosmopolitan reached a $7.5 million settlement with the U.S. Attorney’s Office of the Central District of California for its money laundering violations tied to Nix, a California resident. The settlement also required MGM Grand and the Cosmopolitan to undergo an external review of operations and policies. The two casinos were also required to make enhancements to their anti-money laundering programs.
Last month, Resorts World agreed to a proposed $10.5 million settlement with the NGCB due to its association with illegal bookmakers. Resorts World agreed to the proposed stipulation settlement after the NGCB filed a disciplinary complaint against the casino.
The complaint alleged Resorts World of “unsuitable methods of operation.”
The casino was penalized for allowing Bowyer to wager at its Las Vegas property without verifying his source of funds, including a $1 million front-money deposit. The settlement also mentions illegal activity by Damien LeForbes, a pro poker player and bookie.
LeForbes has also pleaded guilty to charges related to money laundering and operating an illegal gambling business.
The fine is the second-largest fine in Nevada gaming history. In 2019, Wynn Resorts was fined $20 million by the NGCB for failing to investigate claims of sexual misconduct.
