MGM Could Pay over $8M in Nevada AML Investigation
MGM Resorts International may face an $8.5 million fine from the Nevada Gaming Control Board (NGCB) following a proposed settlement agreement announced on Friday. The stipulation is the result of a lengthy investigation into the company's involvement with illegal bookmaker Wayne Nix, who placed millions in wagers at MGM properties. The settlement will be reviewed by the Nevada Gaming Commission (NGC) in a hearing scheduled for this Thursday.
LISTEN TO THIS ARTICLE:The investigation centers primarily on activities at the MGM Grand and the Cosmopolitan of Las Vegas. While MGM did not operate the Cosmopolitan at the time of the incidents, the property is also named in the case due to transactions linked to Nix. The complaint posted by the Gaming Control Board alleges that the MGM Grand accepted more than $4 million in cash from Nix, which was used to place bets through the casino's services. The Cosmopolitan, under its previous ownership, was alleged to have accepted $928,600 in wagers from Nix prior to its acquisition by MGM in 2021.
Related: Scott Sibella Admits to Not Reporting Illegal Sports BettingAlongside the proposed $8.5 million fine from the state, MGM Grand has already paid $6.52 million to the federal government through a non-prosecution agreement. The Cosmopolitan, despite the change in ownership, also resolved federal allegations by paying $928,600 under a separate agreement. This brings the total potential financial impact of the investigation on MGM and its associated properties to nearly $16 million.
The NGCB noted that the complaint outlines unsuitable operational practices associated with the illegal gambling activities of Wayne Nix. These allegations align with the terms described in the federal non-prosecution agreements involving both the MGM Grand and the Cosmopolitan. During the investigation, the Control Board also identified activities by another illegal bookmaker, Matthew Bowyer, further complicating the case.
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MGM AML Oversight Under Fire
A key focus of the complaint is the performance and shortcomings of MGM Resorts' anti-money laundering (AML) program. The NGCB highlighted that its investigation was comprehensive and benefited from cooperation with MGM's leadership and staff. Among the findings were lapses in oversight and reporting, particularly concerning the handling of large cash transactions and the failure to properly flag suspicious behavior.
Central to the MGM Grand's role in the investigation is former President and Chief Operating Officer Scott Sibella. In December 2023, Sibella pleaded guilty to federal charges for failing to report Nix's activities. The charges stemmed from incidents dating back to 2018 and included not determining the source of a customer's funds and neglecting to file a required suspicious activity report. Sibella received a sentence of one year's probation and was fined $9,500. The NGC subsequently revoked his gaming license.
The proposed settlement outlines a range of remedial actions MGM has taken to address the identified deficiencies. Many of the new measures are aimed at strengthening the company's AML policies and increasing awareness of compliance obligations among staff. The implementation includes additional training programs, updated procedures, and improved oversight across MGM properties.
As part of these changes, MGM now requires line-level employees, including cage cashiers, table-game dealers, and guest service representatives, to report any suspicious activity they observe on the casino floor. These reports are submitted through the company's ethics website, providing a direct and documented channel for compliance concerns.
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