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MGM Resorts has finally settled with the Nevada Gaming Control Board (NGCB) concerning the anti-money laundering violations that involved Scott Sibella, former MGM Grand president. The resort has agreed to pay an $8.5 million fine to the regulator.
The case follows actions by Sibella, who allowed Wayne Nix and Mathew Bowyer to gamble with illicit cash at the MGM Grand and the Cosmopolitan on the Las Vegas Strip. Sibella failed to stop both bookmakers, which led to the NGCB filing a 10-count complaint, where it accused the company of neglecting its anti-money laundering (AML) obligations.
“The complaint alleges unsuitable methods of operation arising from the activities of illegal bookmaker, Wayne Nix,” the board said.
This is the second time in as many years that the MGM has been fined for its AML failings. Last year, it had to pay $7.45m to federal prosecutors for allowing bookmakers to gamble with illicit funds at its locations.
“The proposed settlement also details numerous remedial measures implemented at [MGM Resorts] and its subsidiary gaming properties.
“The majority of the conditions and recommendations focus on enhancements to [MGM Resorts’s anti-money laundering program] as well as additional training and awareness of [anti-money laundering] requirements,” NGCB chair Kirk Hendrick wrote in a press release posted to X last Friday (Apr 18).
Resorts World Las Vegas Also Implicated
MGM Resorts is not the only major player to be fined in this scandal, as Resorts World Las Vegas was recently hit with a $10.5 million fine by the board. This penalty marked the second-largest fine ever imposed by the regulator since casino gaming was legalized in the state in 1931.
Matthew Bowyer, a Southern California bookmaker who pleaded guilty to running an illegal gambling operation, was again at the center of the investigation. Reports revealed that Bowyer had connections to Ippei Mizuhara, a former interpreter for MLB star Shohei Ohtani, who allegedly embezzled $17 million to fund his gambling addiction. Bowyer was known to have gambled with these illicit funds at Resorts World.
Sibella was serving as president of Resorts World at the time and was in charge when most of these violations occurred. He was later fired in September 2023 and pleaded guilty to violating the Bank Secrecy Act, which saw him receive a one-year probation sentence along with a $9,500 fine. His gaming license was also suspended for five years.
Meanwhile, Nix and Bowyer are awaiting sentences for federal charges related to illegal betting and money laundering, while Ippei Mizuhara has already been sentenced to 57 months in prison for embezzlement.
MGM Responds
Following the NGCB announcement last week, MGM Resorts has released a statement:
“MGM Resorts takes its compliance responsibilities seriously and cooperated fully with the Nevada Gaming Control Board to resolve this matter. The company has made substantial investments to build one of the industry’s strongest anti-money laundering programs – driven by executive leadership and supported by rigorous training and internal controls. We’ve taken additional steps to strengthen safeguards, increase accountability, and reaffirm our commitment to doing what’s right for regulators, guests, and stakeholders.”
Source: Next.io
