LAS VEGAS (KTNV) — The Nevada Gaming Control Board has announced a proposed settlement with MGM Resorts International, resulting in a fine of $8.5 million due to illegal bookmaking activities that took place at its properties.
This comes on the heels of a significant $10.5 million fine imposed on Resorts World last month for similar violations, marking the second-largest fine in Nevada gaming history.
As part of the settlement with MGM, the company is required to implement remedial measures, including improving its anti-money laundering program and providing additional employee training.
The Nevada Gaming Commission is set to consider the approval of this settlement on Thursday.
The complaint details that Wayne Nix, a former minor league baseball player, operated an illegal bookmaking business in Orange County, California.
Nix reportedly traveled frequently to Las Vegas with substantial amounts of illicit cash proceeds derived from his gambling business, often transporting the money in duffle bags, brown paper bags, or leather purses.
According to the complaint, Nix presented the illicit cash at casinos to place personal bets and pay off markers.
The document states that Scott Sibella, the then-President of MGM Grand, and two casino hosts were aware of Nix’s illegal gambling activities but continued to allow him to use his proceeds at MGM Grand and its affiliate properties.
MGM Grand staff had their own suspicions about the source of Nix’s funds.
As early as 2017, compliance personnel at MGM Grand grew cautious when Nix presented $50,000 in cash at the casino cage, particularly because the cash included a significant amount of smaller denominations—more than $5,000 worth.
An investigation by MGM Grand compliance personnel determined that they could not trace where Nix had obtained such a large sum of cash.
By the year 2020, MGM Grand had reportedly accepted approximately $4,079,830 in cash derived from Nix’s illegal gambling business.
NGCB officials also uncovered that another individual, Mathew Bowyer, was involved in illegal bookmaking operations during their investigation into Nix.
Nix entered a plea agreement in March 2022 with the U.S. District Court for the Central District of California, pleading guilty to one count of conspiracy to operate an illegal gambling business and one count of subscribing to a false tax return.
He is currently awaiting sentencing.
Bowyer, also facing legal issues, reached an agreement with federal authorities after admitting to lying on his 2022 tax return, which stated that he earned only $607,897 when his actual income from his illegal gambling activities was $4,030,938.
This amount included $3.8 million in wire transfers into one of his bank accounts.
Under the terms of his plea agreement, Bowyer will forfeit $257,923 and $14,830 in casino chips seized by law enforcement in October 2023.
He has committed to fully cooperating with federal prosecutors and investigators.
Bowyer’s sentencing, originally scheduled for April 4, has been postponed to October 3.
Scott Sibella, previously the president and chief operating officer of the MGM Grand for eight years, was later appointed president of Resorts World Las Vegas.
In September 2023, Sibella was dismissed from Resorts World after he allegedly violated company policies and the terms of his employment.
In January 2024, he pleaded guilty to breaking federal anti-money laundering rules while serving in his position at MGM Grand.
Sibella permitted Nix to gamble at MGM Grand and affiliated properties using illicit proceeds from his illegal gambling business.
Consequently, Sibella received one year of probation and a fine of $9,500, further highlighting the ongoing issues of illegal activities within Nevada’s gaming sector.
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