MGM Resorts has agreed to pay the settlement of $8.5 million for failure to adhere to anti-money laundering regulations. The settlement relates to allowing unregulated betting operator Wayne Nix to gamble at their casinos in Las Vegas.
The Nevada Gaming and Control Board (NGCB) made a complaint against the casino operator for failing to report suspicious betting by Nix.
“Beginning in 2017, MGM Grand compliance personnel first became suspicious of Nix’s source of income after Nix presented $50,000 in cash at the cage of an MGM Grand property because small denominations comprised more than $5,000 of the cash,” read the complaint. “MGM Grand compliance investigated Nix’s business and determined that it could not substantiate where Nix obtained such a large amount of cash.”
Nix gambled over $4 million at the MGM Grand, funds obtained from illegal gambling.
President violated company policies
Former MGM Grand President Scott Sibella allowed Nix and others to use funds from illicit sources in the casino. Sibella was president from 2017 to 2019. He then switched to work at Resorts World, but was fired from his position there for violating company policies.
Resorts World also had to pay a hefty fine to the NGCB because of Sibella. Serving as an executive at the casino group, Sibella allowed another illegal bookmaker, Matthew Bowyer, to gamble on the premises.
Bowyer was the unregulated betting operator at the heart of the Shohei Ohtani scandal. Ohtani’s translator, Ippei Mizuhara, gambled funds stolen from Ohtani with Bowyer.
The NGCB has revoked Sibella’s license, and the US District Court sentenced him to a year of probation for failing to report the suspicious gambling.
Unregulated betting booming
The series of fines issued by the NGCB reflects a booming business of illegal gambling. Both Bowyer and Nix were operating illegal betting operations from California, a state that prohibits legal sports betting.
Nix ran an offshore betting site that was registered in Costa Rica, Sand Island Sports. He pleaded guilty to operating an illegal betting business in 2022, but is still awaiting sentencing. His sentencing hearing was set for last month, but was further delayed.
Nix operated an illegal betting operation for nearly two decades. His clients included pro-athletes, most notably, former MLB player Yasiel Puig. Puig placed almost 900 bets at Sand Island Sports over a 3-month period.
More recently, the rise of crypto, VPNs, and other technologies provides unregulated betting operators with new platforms. Particularly in states with strict regulations, such as California, unlicensed operators and crypto betting sites give options to bettors.
As well as the settlement with the NGCB, MGM paid a $7.5 million settlement over money laundering violations related to Nix. Resorts World paid out $10.5 million for the case with Bowyer. The casino groups have been ordered to increase their efforts to combat money laundering.
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