MGM Resorts has just agreed to a huge settlement with the Nevada Gaming Control Board after a series of improper business practices by its former president, Scott Sibella. Allegedly, Scott Sibella failed to notify the authorities after several suspicious transactions made by known illegal bookie Wayne Nix. Nix reportedly used prohibited funds from his illicit bookmaking enterprise to gamble and play at a number of casinos in Las Vegas.

MGM Resorts International has reached an agreement to pay an $8.5 million fine in a stipulated settlement with the Nevada Gaming Control Board after it was found to have failed in its anti-money laundering obligations. The penalty comes amid revelations that the company knowingly allowed illegal bookmakers to gamble millions of dollars in illicit funds at several of its properties, including MGM Grand and The Cosmopolitan.

An investigation into illegal activities

The agreement stems from a broader investigation into the actions of the former President of MGM Grand, Scott Sibella, who neglected to report suspicious activity tied to Wayne Nix, an illegal bookmaker. Court documents reveal that Nix, a former minor league baseball player, used proceeds from his unlawful bookmaking operation to gamble at high-end Vegas casinos.

Between 2017 and 2021, Nix wagered over $4 million in illegal funds at MGM Grand alone. Despite clear red flags - including a $50,000 cash drop in small denominations - MGM Grand's compliance team failed to take sufficient action. The NGCB found that internal investigations could not substantiate Nix's source of income, yet no Suspicious Activity Incident Report was filed, as required under the Bank Secrecy Act.

Sibella under suspicion

Sibella, along with two other MGM employees, was aware of Nix's illicit gambling habits. Instead of taking action, the executives provided him with complimentary benefits such as luxury accommodations, fine dining, golf outings, and even a casino line of credit, known as a "maker account." Sibella, who had received formal training in anti-money laundering compliance, chose not to escalate the issue.

The scandal has broader implications for the Nevada gaming industry. Sibella later took a leadership role at Resorts World, where similar misconduct allegedly occurred. Another bookmaker, Matthew Bowyer - who has been implicated in the Shohei Ohtani gambling scandal - was allowed to place wagers at Resorts World during Sibella's tenure, also using illegal cash proceeds. Sibella was ultimately terminated by Resorts World in 2023 for violating company policies.

A history of transgressions in the industry

In May 2024, Sibella pleaded guilty in federal court to failing to file reports of suspicious transactions, a serious violation of federal law. He was sentenced to one year of probation and had his Nevada gaming license revoked. He had faced a $250,000 fine and as much as five years in prison.

The $8.5 million stipulated agreement is expected to be approved by the NGCB as early as next week. MGM Grand has voluntarily waived its right to a public hearing, and the penalty must be paid within two business days of formal acceptance. Proceeds from the settlement will be directed to Nevada's General Fund.

Other major settlements in the past

This is not the first major financial penalty for MGM related to this case. In 2024, The Cosmopolitan and MGM reached a $7.5 million settlement with the US Attorney's Office for the Central District of California for similar violations linked to Nix. That settlement required the casinos to undergo an external operational review and upgrade their anti-money laundering programs.

Additionally, Resorts World had agreed to a $10.5 million settlement last month following its own ties to illegal gambling activities. The complaint alleged 'unsuitable methods of operation,' including allowing Matt Bowyer to make a $1 million deposit without proper verification of the source of funds. The complaint also cited criminal activity by professional poker player and bookie Damien LeForbes, who has pleaded guilty to related money laundering and illegal gambling charges.

The MGM fine marks the second-largest gaming penalty in Nevada history, surpassed only by the $20 million fine levied against Wynn Resorts in 2019 for failing to address sexual misconduct allegations involving its founder.

The NGCB has emphasized that these settlements demonstrate the importance of rigorous compliance and accountability in the gaming industry, warning that enforcement actions will continue for those who fail to meet regulatory standards.