Summary
- MGM Resorts International is set to settle allegations of illegal gambling and violations of anti-money laundering (AML) regulations for $8.5 million.
- The proposed settlement by the Nevada Gaming Control Board must receive approval from the Nevada Gaming Commission.
- Recently, enforcement actions have not only affected MGM Resorts' properties but have also impacted Resorts World Las Vegas.
MGM Resorts International is close to reaching a settlement with the Nevada Gaming Control Board (NGCB). Under the terms of the settlement, the hospitality and gaming giant will pay $8.5 million for alleged violations and will also implement several corrective measures.
Latest enforcement action in Las Vegas targets MGM Resorts International
The Nevada Gaming Control Board (NGCB) has accused MGM Resorts International of failing to implement adequate anti-money laundering (AML) measures. The board claims that the company facilitated illegal bookmakers Wayne Nix and Mathew Bowyer, both of whom have been accused of conducting illegal activities at the casino. The regulator stated that the allegations in the complaint focus on the actions and inactions of MGM employees concerning Mr. Nix and Mr. Bowyer, as well as weaknesses within the AML program. The settlement remains pending, requiring discussion at the upcoming Nevada Gaming Commission (NGC) meeting in April 2025. In a regulatory notice issued last week, the NGCB noted that Nix was permitted to gamble and allegedly launder money at The Cosmopolitan and MGM Grand, both MGM Resorts International properties. Furthermore, the accusation claims that certain casino hosts were collaborating with Bowyer, diverting clients from the MGM Sportsbook to Bowyer’s operation. To validate and enforce the settlement, MGM Resorts International has agreed to implement corrective measures across all its properties. These measures will primarily focus on enhancing AML protocols and training staff to better identify money laundering cases. This development marks the second significant regulatory challenge for a Las Vegas casino in recent weeks. Previously, Resorts World Las Vegas faced a similar situation and settled with the NGCB for $10.5 million.
NGCB proved capable of running complicated investigations years ago
The Nevada Gaming Control Board (NGCB) has targeted the company for failing to comply with anti-money laundering (AML) laws and noted that Resorts World Las Vegas did not adequately meet its obligations as a Nevada gaming licensee. The investigation into the illegal bookmakers dates back to 2015 when Nix and Bowyer first appeared at properties owned by MGM. This suggests that the NGCB is capable of uncovering past violations with ease. This case follows a previous complaint by the NGCB against former MGM Grand President Scott Sibella, who was accused by the regulator of failing to properly oversee operations at both the MGM Grand and The Cosmopolitan. The watchdog cited issues related to illegal gambling and the mishandling of large sums of money. As a result, Sibella had his gaming license suspended in Nevada.
