MGM Resorts to pay $8.5m fine to settle unlicensed bookmaking complaint
The company has reached a proposed penalty agreement with the Nevada Gaming Control Board.
US.- MGM Resorts International has agreed to pay an $8.5m penalty in relation to complaints of unlicensed bookmaking at MGM Grand and The Cosmopolitan of Las Vegas. The Nevada Gaming Commission (NGC) will decide whether to approve the Nevada Gaming Control Board’s (NGCB) proposed Stipulation for Settlement at its monthly meeting on April 24.
The penalty, which would be the fourth biggest issued by the Nevada regulator, relates to ten charges linked to the actions of former Minor League Baseball player Wayne Nix and unlicensed bookmaker Mathew Bowyer at the Las Vegas casinos from 2015 to 2018. The men both pleaded guilty to illegal gambling charges in California – Nix in 2022 and Bowyer last year – and Resorts World Las Vegas has already agreed to pay a $10.5m fine for allowing Bowyer to gamble there.
Eight of the 10 counts against MGM involved Nix, one involved Bowyer and one relates to anti-money-laundering deficiencies. The fine against MGM would go to the Nevada General Fund. Meanwhile, licence conditions will be placed on the casino operator’s gaming licences.
MGM said in a statement that it has taken remedial action to prevent similar incidents from happening in the future. It also highlighted work on anti-money-laundering programs, including more training and internal controls.
It said: “MGM Resorts takes its compliance responsibilities seriously and cooperated fully with the Nevada Gaming Control Board to resolve this matter.”
The complaint against the operators stems from investigations by the NGCB and the U.S. Attorney’s Office for the Central District of California after the regulator received a tip-off from high-stakes gambler R.J. Cipriani.
The NGCB, which says that MGM collaborated with the investigation, says that former MGM Grand president Scott Sibella and two casino hosts knew that Nix was running illegal gambling on the premises. It alleges that hosts even provided Nix with complimentary benefits, including meals, room, board and golf trips with senior executives and other high-net-worth customers.
Agents said that Nix would travel from California to casinos in Las Vegas with illicit cash in duffel bags, brown paper bags and leather purses.
The Nevada Gaming Commission fined Sibella $10.000 and revoked his gaming licence in December. He was previously sentenced to one year’s probation and fined $9,500 for breach of the federal Bank Secrecy Act. Sibella argues that similar practices occur at other Las Vegas casinos.
Resorts World has since restructured its board with Jim Murren as chairman since December and two former regulators as members joining: former Control Board chair A.G. Burnett and former governor Brian Sandoval. Alex Dixon was named CEO in January.
