Illegal bookmakers: MGM Resorts agrees to pay $8,5M fine

The Nevada Gaming Control Board announced Friday that MGM had signed a stipulation of settlement on the 10-count, 29-page complaint that accuses the casino giant of permitting two illegal bookmakers to gamble from 2015 to 2018 at MGM Grand and The Cosmopolitan.

The Nevada Gaming Commission will consider approving the settlement next Thursday in a meeting in Las Vegas.

If approved by the commission, the $8.5 million fine would be the fourth highest in Control Board history.

The complaint alleges an unsuitable method of operation by enabling former minor league baseball player and illegal bookmaker Wayne Nix and illegal bookmaker Mathew Bowyer to play in the two casinos.

Both have pleaded guilty to illegal gambling charges in California.

In a statement issued Friday, the company said changes have been made to prevent what happened from ever happening again.

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

MGM also said it has made substantial investments in its anti-money-laundering programs, including through rigorous training and internal controls.

The complaint, which was established in investigations by the Gaming Control Board and the U.S. attorney’s office for the Central District of California, involves deficiencies in MGM’s anti-money-laundering program.

Some court documents from the U.S. attorney’s office were submitted as exhibits in the Control Board complaint.

Sibella connected

Control Board agents said former MGM Grand President Scott Sibella and two casino hosts were aware Nix was running an illegal gambling operation.

The Control Board had been tipped off months earlier of the alleged illegal activity by high-stakes gambler R.J. Cipriani, who has a presence on X as @robinhood702.

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

Investigators also said Nix traveled frequently from his home in California to casinos in Las Vegas with illicit cash proceeds, typically comprising high-denomination bills, and that at times, he brought the cash in duffel bags, brown paper bags or leather purses to casinos for 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 connection

Commissioners also agreed in March to fine Resorts World $10.5 million for its role in enabling Bowyer to gamble there. Sibella was not implicated in that investigation.

Resorts World has responded by revamping its board of directors and management structure, making former MGM Resorts CEO Jim Murren its chairman.

The five-member board also includes two former gaming regulators, former Control Board Chairman A.G. Burnett, a gaming attorney with McDonald Carano, and former Gov. Brian Sandoval, who is a former chairman of the commission, a former state attorney general and federal judge, and the current president of the University of Nevada, Reno.

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.

The discipline of Nicole Bowyer is not scheduled to be heard in next week’s Gaming Commission meeting.