Former MGM Grand casino president, Scott Sibella, was sentenced to one year of probation and ordered to pay a $9,500 fine for failing to report millions of dollars in wagers by an illegal bookmaker at his casino. The sentencing came after Sibella pleaded guilty to one count of failure to file reports of suspicious transactions as required by the Bank Secrecy Act. Sibella admitted to allowing the patron, former minor league baseball player Wayne Nix, to gamble at MGM Grand with proceeds from his illegal bookmaking business. MGM Resorts, which owns MGM Grand, was also fined $7.45 million as part of a settlement for violations of money laundering laws and the Bank Secrecy Act.
Sibella was terminated from his position at Resorts World casino after his guilty plea, and is currently unemployed. He apologized to his family, friends, and former employers during his sentencing, promising never to return to court again. In addition to his probation, Sibella must pay a $100 special assessment. The Nevada Gaming Control Board has also filed a complaint against Sibella with the state Gaming Commission, seeking further action against his gaming license.
Wayne Nix, the illegal bookmaker Sibella allowed to gamble at MGM Grand, pleaded guilty to conspiracy to operate an illegal sports gambling business and filing a false tax return. He has yet to be sentenced for these crimes. It was revealed that Nix had transferred more than $4 million in cash, which was proceeds from his bookmaking business, to MGM Grand by 2020. The Department of Justice announced in January that both MGM Grand and The Cosmopolitan were found to have laundered Nix’s illicit funds and failed to properly file suspicious activity reports.
Sibella, who became president of Resorts World casino in 2019, was aware of Nix’s illegal bookmaking business but failed to notify the compliance department at MGM Grand. Despite his knowledge, he authorized Nix to receive complimentary benefits at the casino to encourage him to continue patronizing the property. Sibella’s defense lawyers stated in a court filing that he was terminated by Resorts World once the investigation into his conduct at MGM Grand came to light. The casinos involved have agreed to enhance their anti-money laundering compliance program as part of their settlement with the DOJ.
In conclusion, Scott Sibella’s probationary sentence and fine for his role in failing to report an illegal bookmaker’s activities at MGM Grand is a reminder of the consequences of turning a blind eye to criminal activity within the casino industry. The harsh penalties imposed on Sibella and MGM Resorts emphasize the importance of adhering to regulations and reporting suspicious transactions. The actions taken by the Nevada Gaming Control Board and the Department of Justice serve as a warning to others in the industry to prioritize compliance with anti-money laundering laws and regulations to avoid similar legal consequences.
