Nevada regulators unanimously approve $8.5 million fine against MGM Resorts

The Nevada Gaming Commission (NGC) on Thursday unanimously approved an $8.5 million fine against MGM Resorts International, marking the culmination of a far-reaching investigation into anti-money laundering (AML) failures at two of its flagship properties, the MGM Grand and The Cosmopolitan of Las Vegas. The company notably accepted wrongdoing for its transgressions.

The vote finalizes a settlement stemming from a 10-count complaint filed by the Nevada Gaming Control Board (NGCB) last week. The charges, which focused largely on the activities of two illegal bookmakers, Wayne Nix and Mathew Bowyer, span from 2017 to 2020 and include allegations that the properties accepted illicit cash deposits without filing required suspicious activity reports (SARs).

At Thursday’s hearing, MGM Resorts accepted full responsibility for the compliance lapses. “We did not put up obstacles, we cooperated, and we knew at the end of the day there would be a sanction,” said John McManus, the company’s chief legal officer.

Nix, a former minor league baseball player from California, and Bowyer, an illegal sports betting operator, both pleaded guilty to federal gambling charges. According to state regulators, Nix funneled nearly $1 million in illegal proceeds through the two casinos over several years, using bags of high-denomination bills to make deposits.

Investigators said some of the money was carried in duffle bags, brown paper bags, and leather purses.

One charge also cited Bowyer, whose betting operation accepted over $325 million in wagers, including bets from Ippei Mizuhara, the former interpreter for MLB star Shohei Ohtani. MGM officials acknowledged suspicions about Bowyer dating back to 2015 and banned him in 2018.

Former MGM Grand President Scott Sibella

The investigation also implicated former MGM Grand President Scott Sibella, who resigned from the company in 2019 before taking on the same role at Resorts World Las Vegas (RWLV). In December, Sibella had his gaming license revoked and was fined $10,000 by state regulators.

He was also sentenced to one year of federal probation for failing to report suspicious financial activity under the Bank Secrecy Act. Although Sibella denied having an account with Nix’s illegal operation, he admitted to golf course bets and accepting hospitality from Nix, who used the trips to network with high-value casino clients.

The NGC cited inadequate AML protocols, including the failure to file SARs on certain cash transactions from Nix and other red-flagged individuals. Eight of the ten charges involved Nix’s activities, one focused on Bowyer, and another addressed MGM’s broader AML deficiencies.

MGM compliance officials told the commission that improvements had already been implemented since the allegations surfaced. Stephen Martino, the company’s chief compliance officer, outlined an eight-point remediation plan.

It includes enhanced due diligence for top cash customers, new protocols for large cash transactions exceeding $100,000, cross-departmental credit reviews, and over $1 million in new AML compliance investments.

Scott Scherer, MGM’s legal representative, presented a compliance framework that emphasized the company’s internal reforms. Among the quotes displayed was one from CEO Bill Hornbuckle at a 2024 staff town hall: “I don’t care if there’s a single customer with all the money in the world. It is still not worth our reputation.”

While the commission acknowledged the company’s efforts to improve its compliance posture, members emphasized the gravity of the case. “We will expect nothing less than excellence,” Commissioner Brian Krolicki said, calling the case a “clarion call” to the entire gaming industry. Krolicki added that corporate leadership and culture are key to ensuring compliance. “The tone at the top is extremely important,” he said.

Commission Chairwoman Jennifer Togliatti

Commission Chairwoman Jennifer Togliatti added that even with systems in place, a single bad actor could tarnish the reputation of the entire organization. Commissioner Abbi Silver recused herself from the vote due to a past association with Sibella. The fine marks the fourth-largest in NGCB history.

The hearing also comes amid continued fallout in the wider illegal gambling investigation. Regulators have yet to decide on potential penalties for Nicole Bowyer, Mathew Bowyer’s wife and an independent agent on behalf of Resorts World. The commission has signaled it may seek a lifetime ban against her, beyond the originally proposed five-year suspension.

In response to the $8.5 million fine, MGM Resorts issued a statement. “The company has made substantial investments to build one of the industry’s strongest anti-money laundering programs — driven by executive leadership and supported by rigorous training and internal controls. We’ve taken additional steps to strengthen safeguards, increase accountability, and reaffirm our commitment to doing what’s right for regulators, guests, and stakeholders.”

The company has reportedly filed over 46,000 SARs and banned more than 2,600 customers since 2015, with many of the new compliance protocols informed by external audits and internal reviews.