Reworked Article on MGM Resorts' $8.5 Million Settlement for AML Violations
MGM Faces $8.5 Million Penalty for Neglecting Anti-Money Laundering Standards
Hefty $8.5M fine for MGM Resorts over AML lapses with illegit bookies
In a shocking turn of events, MGM Resorts International is looking at coughing up a whopping $8.5 million to Nevada regulators, following a thorough knee-deep investigation into Anti-Money Laundering (AML) loopholes, associated with two convicted bookmakers running illegal gambling operations.
If the Nevada Gaming Commission gives a nod next week, this settlement would rank among the biggest regulatory fines in the state's heritage.
The penalty arises from a 10-count complaint by the Nevada Gaming Control Board (NGCB), focusing on MGM's inability to prevent illicit gambling practices and manage large cash transactions at the MGM Grand and The Cosmopolitan. The brunt of the blame lands squarely on the shoulders of former MGM Grand President, Scott Sibella.
According to the complaint, Sibella gave a thumbs-up for complimentary perks – such as hotel rooms, meals, and show tickets – for Wayne Nix, an ex-minor league baseball player turned hand-in-the-cookie-jar bookie. Investigators dug up that Nix bet millions in illicit dough over hundreds of visits, often carrying wads of cash in bags. Despite flashing red warning signs as early as 2015, no reports of suspicious activity were filed, and Nix was given a free pass to return.
The investigation also unearthed that another notorious bookmaker, Mathew Bowyer, continued gambling at MGM properties between 2015 and 2018. Executives voiced concerns about his financial credibility from the get-go, but they let him carry on – even when a customer claimed Bowyer was poaching clients for illegal gambling activities.
Connected Fines and the Fallout for MGM and Resorts World
MGM Resorts acknowledged the settlement, stating they cooperated with the regulators and beefed up their internal controls. The company remained silent on the hefty fine itself but admitted they have since ramped up AML training and established a system allowing front-line employees to flag suspicious behavior.
This state-level fine follows a separate $7.45 million federal penalty MGM paid as part of a non-prosecution agreement last year. All told, MGM has splurged over $16 million addressing oversights related to illegal gambling operations and AML shortcomings.
Background and Intricacies of the $8.5 Million Settlement
The $8.5 million settlement between MGM Resorts International and Nevada regulators transpired due to AML violations involving illegal bookmakers at MGM’s Las Vegas properties. Here are the key specifics:
1. Origins of the Infractions: - The infractions primarily materialized at MGM Resorts’ ace-up-the-sleeve properties, the MGM Grand and The Cosmopolitan, from 2015 to 2021. - Former MGM Grand President Scott Sibella was accused of enabling illegal bookmakers to gamble without reporting suspicious transactions.*
2. Key Players Involved: - Wayne Nix and Mathew Bowyer: Both were crooked bookies who laundered illicit cash proceeds through the casinos using stacked wads of loot. Nix, an ex-minor league ballplayer, funneled nearly $1 million through the casinos using large bills. - Scott Sibella: The former president of MGM Grand was privy to the illicit activities but failed to report them. He was sentenced to 12 months of supervision, a $9,500 fine, and had his gaming license revoked for at least five years.*
3. Character of the Infractions: - MGM Resorts was chided for not adhering to AML regulations by not filing required suspicious activity reports (SARs) for cash deposits made by Nix and Bowyer. - The infractions encompassed accepting markers (debt) paid in cash with little reporting.
4. Settlement and Consequences: - The Nevada Gaming Control Board (NGCB) filed a 10-count complaint, with nine counts linked to Nix and one related to Bowyer. - MGM Resorts agreed to dish out an $8.5 million fine as part of a stipulated settlement, signaling the company's willingness to accept full responsibility for compliance lapses. - The settlement includes provisions aimed at strengthening MGM’s AML program and boosting training and awareness among employees. - The Nevada Gaming Commission (NGC) unanimously approved the fine, finalizing the settlement.
This settlement follows a previous federal non-prosecution agreement involving MGM last year, where the company forked over $7.45 million related to similar havocs.*
- Incorporated insights from enrichment data where relevant to the context.
- MGM Resorts International, having cooperated with regulators, agreed to pay an $8.5 million fine to the Nevada Gaming Control Board, a settlement stemming from AML violations associated with illegal bookmakers at MGM's Las Vegas properties.
- The fine arises from a 10-count complaint, with nine counts focused on the activities of bookmaker Wayne Nix, who funneled nearly $1 million through MGM's casinos using large bills, and one count related to bookmaker Mathew Bowyer.
- Scott Sibella, the former president of MGM Grand, was accused of enabling these illicit activities but failed to report them, earning him a sentence of 12 months of supervision, a $9,500 fine, and a revocation of his gaming license for at least five years.
