$8.5M fine ordered for MGM Resorts over illegal bookmakers

It was the fourth-highest fine in Nevada Gaming Control Board history and completes disciplinary action relating to former MGM Grand President Scott Sibella and two casino hosts, who were aware that two California men playing at the casino were running illegal sports gambling operations.

MGM Resorts had issued a statement Friday, the day after the Gaming Control Board posted a 10-count, 29-page complaint against the state’s largest resort operator. The company said changes have been made to prevent what happened from ever occurring again.

“MGM Resorts takes its compliance responsibilities seriously and cooperated fully with the Nevada Gaming Control Board to resolve this matter,” the company’s statement said. “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.”

The complaint alleged an unsuitable method of operation by enabling former minor league baseball player and illegal bookmaker Wayne Nix and a second illegal bookmaker, Mathew Bowyer, to play in the two casinos between 2017 and 2020.

Nix and Bowyer pleaded guilty to federal illegal gambling charges in California in 2018 and 2024, respectively.

Anti-money-laundering deficiencies

The complaint was established in investigations conducted by the board and the U.S. Attorney’s Office for the Central District of California and involves deficiencies in MGM’s anti-money laundering program.

Some of the court documents from the U.S. Attorney’s Office were submitted as exhibits in the Control Board complaint.

Citing a longtime friendship with Sibella, Commissioner Abbi Silver recused herself from the vote.

In a 30-minute presentation before the commission vote, MGM officials explained how their compliance efforts have been strengthened from when they first learned about the illegal play that was discovered in their casinos.

The company hired a firm to investigate allegations about Nix and Sibella in 2022 and over several years changed several policies to improve compliance to anti-money-laundering laws. Among the changes implemented were increasing training for marketing staff, hiring external auditors to test the AML program, spending more than $1 million for additional compliance staff and establishing new procedures to learn about and monitor new customers.

The company told commissioners that since 2015 it has banned more than 2,600 customers and filed more than 46,000 suspicious activity reports.

Commissioners said while they appreciated MGM’s efforts to improve its compliance program that the company must stay vigilant in its efforts.

Commission Chairwoman Jennifer Togliatti said while she believes MGM now has one of the state’s cutting-edge compliance programs that it only takes one bad actor to ruin the reputation of the entire organization.

Commissioner George Markantonis said there’s a greater need for compliance because “this story has captivated our industry and everyone is following these proceedings.”

Commissioner Brian Krolicki said MGM’s attention to the matter was “a clarion call to the industry” to get their respective compliance programs up to speed.

“We will expect nothing less than excellence and the tone at the top is extremely important,” he said.

The complaint said “not only did Sibella and the two hosts continue to allow Nix to present illicit proceeds to the casino and/or at other affiliate properties, but they would provide Nix complimentary benefits at the casino, including meals, room, board and golf trips with senior executives and other high-net-worth customers at the casino to further encourage Nix to patronize the casino and spend his illicit proceeds at the casino.”

Investigators also said, “Nix would travel frequently from his home and base of operation in the Central District of California to casinos in Las Vegas, Nevada, with illicit cash proceeds from the Nix Gambling Business. The cash typically comprised high-denomination bills, and, at times, Nix transported the cash in duffle bags, brown paper bags or leather purses” to casinos to place them on deposit.

Eight of the 10 counts brought against MGM involved actions by Nix and one involved Bowyer, with one directed at the company’s anti-money laundering deficiencies.

Sibella, also a former top executive with Resorts World Las Vegas, already was penalized by state regulators when the Gaming Commission voted to revoke his gaming license in December and fine him $10,000. He earlier had been sentenced to one year’s probation and fined $9,500, plus a $100 special assessment, for violating the federal Bank Secrecy Act.

Sibella has said other executives within the company failed to file suspicious activity reports and that the practices he’s been punished for have occurred at other casinos across the city.

Resorts World fine

Commissioners also agreed in March to fine Resorts World $10.5 million, the second-highest fine ever assessed, for its role in enabling Bowyer to gamble there. Sibella was not implicated in that investigation.

Still unresolved are penalties against Nicole Bowyer, Mathew Bowyer’s wife, who was working as an independent agent on behalf of Resorts World.

Independent agents encourage gamblers to play at specific casinos and are paid a commission from the casino based on the player’s losses.

In January, the Gaming Commission opted to delay action against Nicole Bowyer, seeking a greater penalty against her than a recommended five-year licensing ban. At least one commissioner wanted to see a lifetime ban imposed against her.

Contact Richard N. Velotta at rvelotta@reviewjournal.com or 702-477-3893. Follow @RickVelotta on X.