MGM Resorts Faces $8.5M Penalty Over Anti-Money Laundering Failures

MGM Resorts International will pay Nevada regulators $8.5 million after a long investigation into breaches of anti-money laundering (AML) rules linked to two convicted illegal bookmakers. The proposed deal, if the Nevada Gaming Commission approves it next week, would be one of the biggest regulatory fines in the state’s history.

MGM Slammed with Fine for Letting Bookies Operate Freely at Strip Casinos

The fine comes from a 10-count complaint filed by the Nevada Gaming Control Board (NGCB). It focuses on former MGM Grand President Scott Sibella‘s inability to stop illegal gambling and the poor handling of large cash transactions at MGM Grand and The Cosmopolitan.

The complaint states that Sibella gave the go-ahead for free perks — including rooms, food, and shows — to Wayne Nix, who used to play minor league baseball but became an illegal bookie. Investigators found that Nix bet millions in dirty money over hundreds of visits, often bringing big wads of cash to the casino in plain bags. Even though there were warning signs and concerns within the company going back to 2015, nobody filed any official reports, and Nix was told to come back.

The probe also revealed that Mathew Bowyer, another convicted bookmaker, bet at MGM properties from 2015 to 2018. Even though MGM executives doubted Bowyer’s financial credibility as early as 2015, they let him keep playing until 2018. This continued despite a customer complaining that Bowyer was stealing clients from MGM for illegal betting.

MGM and Resorts World Hit with Millions in Fines Linked to Sibella

MGM Resorts released a statement confirming the settlement and stating that they had worked with authorities. The statement did not mention the fine, but the company highlighted that they had since put in place several internal changes. These included more AML training and a system for front-line staff to report any behavior that seems off.

This state fine comes after MGM paid a $7.45 million federal penalty in a separate but related non-prosecution deal. In total, MGM‘s failures to comply with rules about illegal betting operations have resulted in the company spending $16 million.

Sibella, who also led Resorts World Las Vegas until they fired him in 2023, earlier admitted guilt to breaking the federal Bank Secrecy Act. The court gave him a year of probation, ordered him to pay $9,500, and put him on Nevada’s “Gray List,” which stops him from holding gaming licenses for five years. Resorts World has also come under regulatory scrutiny for these issues. In March, the company agreed to pay a $10.5 million fine for similar problems that occurred while Sibella was in charge.