In a significant move, the Nevada Gaming Commission voted unanimously on Thursday to impose an $8.5 million fine on MGM Resorts International for allowing two illegal bookmakers to gamble at its renowned properties, MGM Grand and The Cosmopolitan.
This penalty marks the fourth-highest fine ever recorded in the history of the Nevada Gaming Control Board and culminates a series of disciplinary actions related to former MGM Grand President Scott Sibella, alongside two casino hosts.
The accusations stemmed from the discovery that the two bookmakers, Wayne Nix and Mathew Bowyer, were permitted to engage in gambling activities at MGM’s facilities between 2017 and 2020.
Nix, a former minor league baseball player, and Bowyer, identified as an illegal bookmaker, pleaded guilty to federal charges related to illegal gambling in California in separate cases in 2018 and 2024, respectively.
The complaint against MGM Resorts involves serious deficiencies within its anti-money laundering (AML) program, which was highlighted during investigations by both the Nevada Gaming Control Board and the U.S. Attorney’s Office for the Central District of California.
In response to the legal issues, MGM issued a statement outlining the substantial changes and investments it has made to enhance compliance and prevent similar incidents from occurring in the future.
“MGM Resorts takes its compliance responsibilities seriously and fully cooperated with the Nevada Gaming Control Board to resolve this matter,” the company’s statement asserted, underscoring its commitment to compliance through rigorous training, internal controls, and a robust AML program.
As part of its efforts to strengthen its compliance, MGM has spent over $1 million to hire additional compliance staff, increase training for marketing personnel, and engage external auditors to assess the AML program.
Additionally, the company reported that since 2015, it has banned more than 2,600 customers and submitted over 46,000 suspicious activity reports.
During a 30-minute presentation before the commission, MGM officials detailed how their compliance protocols have evolved since recognizing the issue of illegal play in their casinos.
However, despite acknowledging MGM’s robust compliance improvements, commissioners stressed the importance of vigilance in maintaining the integrity of operations.
Commission Chairwoman Jennifer Togliatti remarked that even with an advanced compliance program in place, the actions of one individual can tarnish the organization’s reputation.
“While I believe MGM now has one of the state’s leading compliance programs, it only takes one bad actor to ruin the reputation of the entire organization,” Togliatti noted.
Similarly, Commissioner George Markantonis emphasized the heightened need for compliance across the board, stating, “this story has captivated our industry, and everyone is following these proceedings.”
Commissioner Brian Krolicki remarked that MGM’s proactive stance should serve as a “clarion call to the industry,” urging all gaming establishments to enhance their compliance programs.
The complaints against MGM indicated that not only did Sibella and the casino hosts allow Nix to use illicit funds within the casino, but they provided him with complimentary services, including meals, accommodations, and even golf trips with high-net-worth customers in an effort to encourage his patronage.
Investigators further noted that Nix frequently traveled to Las Vegas with significant amounts of cash, often in high-denomination bills, which he transported in various bags to deposit at casinos.
Out of the ten counts against MGM, eight pertained to Nix’s actions, while one related to Bowyer, and one involved the company’s AML deficiencies.
Sibella, who previously held a significant position at Resorts World Las Vegas, had already faced penalties when the Nevada Gaming Commission decided to revoke his gaming license in December. He was also fined $10,000 following charges of violating the federal Bank Secrecy Act, resulting in a sentence of one year’s probation and a $9,500 fine, along with a $100 special assessment.
Sibella claimed that other executives within MGM failed to file the necessary suspicious activity reports and pointed out that the practices for which he was penalized are prevalent in other casinos throughout the city.
In a related note, the Gaming Commission had previously fined Resorts World an astounding $10.5 million, the second-highest penalty ever imposed, for its involvement in allowing Bowyer to gamble at their premises, without implicating Sibella in the investigation.
Looking ahead, the penalties against Nicole Bowyer, Mathew Bowyer’s wife, who was functioning as an independent agent for Resorts World, remain unresolved. The commission delayed action against her, seeking a more significant penalty than a proposed five-year licensing ban, with at least one commissioner advocating for a lifetime ban.
The repercussions of these investigations underscore the critical importance of stringent compliance measures within the gaming industry, as MGM Resorts navigates a significant corrective pathway to restore its standing and commitment to regulatory adherence.
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