MGM Admits Accepting $5 Million in Unlawful Betting Funds, Strengthening Anti-Money Laundering Measures
MGM Resorts International fesses up to a $8.5m blunder, taking the rap for accepting close to $5m in illicit sports bets from shady bookies without giving authorities a heads up. The Nevada Gaming Commission, in a demonstration of unity, slapped the fine on the casino titan last week after a compromise with the Nevada Gaming Control Board (NGCB).
Commissioners didn't lay all the blame on MGM, casting a skeptical eye on certain rogue operators instead. Ex-MGM Grand Chief, Scott Sibella, and a couple of casino floor big-wigs allegedly coaxed an illegal bookie named Wayne Nix to gamble at the property, despite his shady gambling racket.
The rats got kicked off the ship
In the meeting, MGM's legal eagle, Scott Scherer, admitted that the company aspires to be a trailblazer in anti-money laundering (AML) compliance. However, they put too much faith in their workers sticking to the training script and not freestyle jamming. MGM's Chief Compliance Officer, Stephen Martino, added that the rule-breakers ended up losing their positions.
In a bid to better their AML compliance and school their team, MGM will shell out an extra $1m and gear up for a companywide enlightenment drive.
The saga began with MGM's failure to spot and report suspicious activities, like large cash deposits in unconventional containers, which flew under the radar. This lapse initially went unnoticed until the feds landed on two illegal bookies, Wayne Nix and Matthew Bowyer, who pled guilty to gambling charges. Nix funneled nearly $1m in dodgy dough through the casinos, while MGM happily absorbed almost $5m in bets from these questionable operations.
In response, MGM is tightening their AML net by beefing up their security measures, investing an additional $1m in this sector, and launching a companywide awareness blitz to ensure a repeat performance is practically impossible. The guilty parties have already been booted. MGM has accepted full responsibility for its shortcomings and has demonstrated a commitment to rectifying these issues as part of the settlement agreement.
[1] Las Vegas Review-Journal: MGM Resorts faces possible $8.5 million fine for AML lapses, https://www.reviewjournal.com/business/casinos-gaming/mgm-resorts-faces-possible-8-5-million-fine-for-aml-lapses-2096896/
[2] CDC Gaming Reports: MGM Resorts Agrees to Nevada Fine Over AML Failures, https://www.cdcgaming.com/News/Details/MGM-Resorts-Agrees-to-Nevada-Fine-Over-AML-Failures-5549
[3] Bloomberg: MGM Says It Will Pay $8.5 Million Fine Over AML Failures in Nevada, https://www.bloomberg.com/news/articles/2019-09-19/mgm-says-it-will-pay-8-5-million-fine-over-aml-failures-in-nevada
[4] The Nevada Independent: MGM Resorts employees lost jobs due to money laundering failure, https://www.nevadaindependent.com/article/mgm-resorts-employees-lost-jobs-due-to-money-laundering-failure/
[5] Associated Press: MGM to pay $8.5 million for failures in anti-money laundering efforts, https://abcnews.go.com/Business/wireStory/mgm-pay-8-5-million-failures-anti-money-laundering-65847146
- MGM Resorts International is facing an $8.5 million penalty for lapses in its anti-money laundering (AML) compliance.
- The Nevada Gaming Commission and the Nevada Gaming Control Board (NGCB) imposed the fine after a compromise.
- Commissioners did not solely blame MGM, expressing suspicion towards certain rogue operators.
- Ex-MGM Grand Chief, Scott Sibella, and other casino personnel allegedly enticed an illegal bookie named Wayne Nix to gamble at the property.
- MGM's legal representative, Scott Scherer, admitted the company aims for better AML compliance but overlooked worker training.
- As a result of the rule-breakers' actions, MGM will invest an additional $1 million in improving AML compliance and conducting a companywide awareness campaign.
- General news outlets, such as the Las Vegas Review-Journal, CDC Gaming Reports, Bloomberg, The Nevada Independent, and the Associated Press have reported on MGM's AML lapses and the subsequent fine.
