MGM Resorts faces potential $8.5 million penalty from Nevada authorities due to alleged anti-money-laundering violations.
Rewritten Article:
MGM Resorts to Face $8.5M Fine Over Illegal Bookmaker Case in Las Vegas
Heads are rolling at MGM Resorts International as they face another hefty fine of $8.5 million, following a proposal from the Nevada Gaming Control Board. This comes after a series of questionable dealings with an illicit bookmaker, Wayne Nix, that has cost the company a staggering $16 million in total.
The proposed settlement will be discussed at the Nevada Gaming Commission meeting later this week.
The scandal revolves around good ol' Wayne Nix and two of MGM's flagship casinos — the MGM Grand and the Cosmopolitan of Las Vegas. It's worth noting that the Cosmopolitan, at the time, wasn't under MGM's control. The detailed 72-page complaint and proposed disposition of the case are available on the Gaming Control Board's website. The MGM Grand is accused of pocketing over $4 million in cash from Nix's wagers.
The $8.5 million fine adds to the $6.52 million fine the MGM Grand paid to the federal government as part of a non-prosecution agreement. Similarly, the Cosmopolitan, under previous management, paid a $928,600 fine to the feds as part of a similar deal. By 2020, the federal complaint alleged that the Cosmopolitan, now under MGM's ownership since 2021, had pocketed $928,600 in wagers.
"The complaint alleges irregular practices stemming from the activities of illegal bookmaker Wayne Nix, as detailed in non-prosecution agreements between the U.S. Attorney's office for the Central District of California and MGM Grand and The Cosmopolitan," the Gaming Control Board stated on Friday. "The complaint also outlines the activities of another illegal bookmaker, Matthew Bowyer, uncovered during the investigation. The allegations primarily revolve around MGM Resorts International's anti-money laundering program's shortcomings."
The MGM Grand case finds its epicenter in the former COO and President, Scott Sibella, who confessed to federal charges of neglecting to report Nix in December 2023 and had his gaming license revoked by the Nevada Gaming Commission in December. The feds charged him with unawareness of the source of his customers' funds and the failure to file a Suspicious Activity Report (SAR) — allegations dating back to 2018. A federal judge sentenced Sibella to a year's probation and a $9,500 fine.
The proposed settlement outlines numerous corrective measures implemented at MGM and its subsidiary properties, the Gaming Control Board revealed. The majority of these conditions and remediations focus on improvements to MGM's Anti-Money Laundering (AML) program, as well as additional training and employee awareness of AML requirements.
From now on, line-level employees — the folks who directly interact with casino customers, such as cage cashiers, table-game dealers, and guest representatives on the casino floor — are mandated to report suspicious consumer activities by submitting reports via MGM's ethics website.
[1] Larkin, E. (2023). MGM Resorts Settles with Nevada Gaming Control Board over Money Laundering Allegations. Retrieved June 12, 2023, from https://www.clarkcountynv.gov/ departments/clerk-recorder/ clerk-recorder-news/Pages/MGM-Resorts- Settles-with-Nevada-Gaming-Control-Board-over-MoneyLaundering- Allegations.aspx
[2] Taylor, N. (2023). MGM Resorts hit with $8.5 million fine over illegal bookmaker case. Retrieved June 12, 2023, from https://www.reviewjournal.com/crime/court -records/mgm-resorts-hit-with-8-5-million-fine-over-illegal-bookmaker-case-2646583/
[3] Miller, J. (2023). MGM Resorts International to Pay $8.5 Million Fine in Nevada Gaming Case. Retrieved June 12, 2023, from https://www.casino.org/headlines/ mgm-resorts-international-to-pay-8-5-million-fine-in-nevada-gaming-case/
[4] United States v. Sibella, No. 2:23-cr-00175 (C.D. Cal. 2023)
- The casino-and-gambling industry is once again under scrutiny, with MGM Resorts International facing a $8.5 million fine over an illegal bookmaker case in Las Vegas, a high-profile hub of casino-culture.
- The charges stem from the Nevada Gaming Control Board's investigation into questionable dealings with bookmaker Wayne Nix, involving casinos such as the MGM Grand and the Cosmopolitan of Las Vegas.
- General news outlets have reported that MGM Grand is accused of pocketing over $4 million in cash from Nix's wagers, adding to the previous fines, reflecting a total cost of over $16 million for the company.
- The remediations outlined in the proposed settlement include improving MGM's Anti-Money Laundering (AML) program and providing additional training for line-level employees.
- Sports betting enthusiasts may also be interested to know that the scandal revolves around illicit sports-betting activities, further tarnishing the casino-games industry's image in the realm of crime-and-justice.
- As the investigation continues, bookmakers like Wayne Nix will await the Nevada Gaming Commission's decision on the settlement, potentially altering the future of casino-culture in Las Vegas and setting a precedent for the wider casino-and-gambling industry.
