MGM Resorts Fined $8.5M Over Anti-Money Laundering Lapses
MGM Resorts has agreed to an $8.5 million settlement with Nevada regulators after admitting to violations related to illegal bookmaking and poor anti-money laundering (AML) practices.
LISTEN TO THIS ARTICLE:The Nevada Gaming Commission (NGC) unanimously approved the fine, which resulted from a complaint filed against the MGM Grand and The Cosmopolitan of Las Vegas.
The commission’s vote marks the second big AML-related penalty in a month and both involved former MGM Grand President Scott Sibella. Sibella later became president of Resorts World Las Vegas (RWLV), which was fined $10.5 million by the NGC last month. He was terminated by RWLV in 2023 and received one year of probation for failing to report suspicious activity.
MGM Accepts Responsibility for Failings
Unlike RWLV, which neither admitted nor denied wrongdoing, MGM Resorts accepted responsibility. John McManus, MGM’s chief legal officer, explained that the company cooperated in the knowledge that a fine would follow.
The 10-count complaint against MGM results from two illegal bookmakers, primarily Wayne Nix, a California resident who pleaded guilty in 2022 to running an illegal gambling operation. Nix raised red flags as early as 2017 when he deposited $50,000 in cash at MGM Grand, much of it in small denominations. Still, MGM failed to file suspicious activity reports (SARs) for several transactions.
Regulators said Nix routinely brought large sums of money into Las Vegas, sometimes in paper or leather bags. By 2020, The Cosmopolitan had accepted nearly $930,000 in illegal proceeds from Nix’s gambling business.
Nix’s relationship with Sibella was a focal point in the investigation. Sibella acknowledged taking golf trips with Nix but denied placing bets through his operation. The complaint also details Nix’s use of these trips to recruit wealthy MGM guests.
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$325M in Bets from MBL Star’s Interpreter
Nine of the ten charges relate to Nix, while the remaining charge involves Matt Bowyer, another illegal bookmaker. Bowyer’s enterprise reportedly took over $325 million in bets from Ippei Mizuhara, former interpreter for MLB star Shohei Ohtani. MGM suspected Bowyer’s activities as early as 2015 and banned him in 2018.
During the hearing, McManus and MGM’s compliance chief, Stephen Martino, presented an eight-point remediation plan. It includes heightened due diligence for top cash clients, new transaction reporting standards, and over $1 million in additional AML investments.
While acknowledging MGM’s improvements, Commissioner Brian Krolicki warned that regulators expect “perfection” and that enforcement will continue to send a message to illegal operators.
Chairwoman Jennifer Togliatti gave her support to the settlement, while Commissioner Abbi Silver recused herself due to past ties with Sibella.
Meanwhile, Mike Dreitzer was named chairman of the Nevada Gaming Control Board. Industry experts hope his appointment brings stability to the role, which has seen frequent turnover.
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