MGM Resorts International has agreed to pay an $8.5 million fine to the Nevada Gaming Control Board (NGCB), resolving allegations that the company failed to prevent illegal bookmakers from laundering large sums of cash through its Las Vegas Strip casinos. The settlement, announced late last week, stems from a 10-count complaint filed by the NGCB and is set to be reviewed by the Nevada Gaming Commission during its upcoming April 24 meeting.

The complaint details extensive violations of anti-money laundering (AML) regulations under the Bank Secrecy Act, primarily involving Wayne Nix, a former minor league baseball player turned illegal bookmaker, and Mathew Bowyer, another convicted bookmaker. The offenses occurred in 2018 at the MGM Grand Las Vegas and The Cosmopolitan of Las Vegas—both operated by MGM—while Scott Sibella served as president of the MGM Grand.

Nine of the ten counts in the complaint focus on Nix’s activities, while the tenth involves Bowyer. Regulators assert that millions of dollars were wagered and paid off in unreported cash transactions by the two men, in clear violation of AML rules.

Former MGM Executive at Center of Scandal

The controversy has its roots in the actions and oversight of Scott Sibella, who held leadership roles at both MGM Grand and, later, Resorts World Las Vegas. Sibella was fired from Resorts World in September 2023 and was subsequently placed on the state’s “Gray List” of unsuitable gaming license applicants, effectively barring him from reentering Nevada’s gaming industry for five years.

In a separate legal proceeding, Sibella admitted guilt in federal court for violating the Bank Secrecy Act. Although he avoided incarceration, he received a year of probation and was fined $9,500. He also paid $10,000 to cover the cost of Nevada’s regulatory investigation.

In March, Resorts World was hit with a $10.5 million fine—Nevada’s second-largest ever—for its own failures to prevent similar illegal gambling activity involving Bowyer and another bookmaker, Damien LeForbes, during Sibella’s tenure.

Enhancements to Compliance and Oversight

While MGM Resorts has not directly commented on the fine, the company released a statement affirming its full cooperation with regulators. It emphasized that significant steps have been taken to bolster its AML program, including enhanced employee training and more robust internal safeguards.

“We’ve taken additional steps to strengthen safeguards, increase accountability, and reaffirm our commitment to doing what’s right for regulators, guests, and stakeholders,” MGM Resorts said in a written statement, quoted by The Nevada Independent.

Kirk Hendrick, Chairman of the Nevada Gaming Control Board, noted in a public message on social media that while the agency’s primary focus was on the activities of Wayne Nix, the broader investigation also uncovered Bowyer’s involvement. The settlement outlines several corrective actions that MGM has implemented, including expanded training and revised protocols across its properties.

Regulatory Oversight Tightens in Wake of Scandal

This latest disciplinary action continues a trend of heightened enforcement in Nevada’s gaming sector, particularly when it comes to compliance with AML regulations. The NGCB emphasized that MGM’s cooperation was extensive throughout the investigation, and the proposed agreement mandates ongoing conditions for its gaming licenses.

Among the requirements is a comprehensive initiative targeting frontline casino workers, such as hosts and sportsbook employees, to reinforce the importance of identifying and reporting suspicious financial behavior. Earlier this year, MGM Resorts was fined $7.45 million by federal authorities for AML violations tied to Sibella’s conduct and oversight failures by other company executives. That penalty came in addition to the newly proposed state-level $8.5 million fine.

If the Nevada Gaming Commission approves the agreement this week, it would formally conclude the state’s inquiry into MGM Resorts’ involvement in this high-profile illegal gambling and money laundering case. The settlement not only penalizes past actions but also aims to set a stronger foundation for AML compliance moving forward.