MGM agrees to pay $8.5 million fine for money laundering violations

MGM Resorts International executives had suspicions about illegal bookmaker Mathew Bowyer’s source of income as early as 2015, and were notified by a customer in 2018 that Bowyer was attempting to poach gamblers from MGM casinos, alleges a complaint filed Thursday by the Nevada Gaming Control Board.

In April of 2018, the complaint says, an MGM customer wrote in an email to a corporate host that his casino hosts may be sharing information about him with Bowyer, including an allegation that “Mr. Bowyer is attempting to steal clients from the MGM, hence he is in the illegal bookmaking business and [casino host] is funneling MGM sportsbook clients to Mr. Bowyer.” The email was forwarded to two casino marketing managers, the GCB complaint states, however it was not reported to MGM Compliance executives.

The revelation comes a year and a half after federal authorities from California agreed to allow MGM to pay a $7.45 million fine in lieu of prosecution for allowing another illegal bookmaker, Wayne Nix, to gamble and launder cash at MGM Grand and the Cosmopolitan, which the company now owns.

Then-MGM Grand president Scott Sibella “approved complimentary rooms, food service, and event tickets for Mr. Nix, and invited Mr. Nix on marketing trips to encourage him to gamble at the MGM Grand,” the complaint says.

The Nevada Gaming Commission will be asked next week to sign off on a stipulated agreement calling for MGM Resorts International to pay an $8.5 million fine for allowing illegal bookmakers to gamble and failing to adhere to anti-money laundering laws.

The Current was first to report in 2023 that the Criminal Division of the Internal Revenue Service was investigating MGM and Resorts World. The Nevada Gaming Commission last month approved a stipulated agreement in which Resorts World agreed to pay a $10.5 million fine. Federal authorities have yet to take any action against Resorts World.

Former MGM Resorts Chairman and CEO Jim Murren, who led the company during the time the alleged violations occurred, declined to comment. Earlier this year, Resorts World named Murren to head up its Board of Directors.

The Current reported last year that Murren, the company’s general counsel John McManus, and the GCB were notified in 2019 that executives, including Sibella, were catering to gamblers with questionable bankrolls.

GCB officials have declined to say what, if any, action they took at the time. Las Vegas Raiders president Sandra Douglass Morgan, who served as chairperson of the GCB at the time, also did not respond.

Nix gambled at MGM properties on 400 separate days, the GCB complaint asserts. Each day constitutes a separate violation.

A Cosmopolitan host “went to dinner with Mr. Nix, invited Mr. Nix to casino-sponsored events, and encouraged Mr. Nix to travel and stay at the Cosmopolitan to use the illegal proceeds,” and referred at least one casino customer to place illegal sports bets with Nix.

The GCB’s “months long investigation” revealed MGM executives had “suspicions” from March 2015 until September 2018 about Bowyer’s source of funds, but did nothing to stop him from gambling on 300 separate days at MGM properties.

MGM knew, or should have known, since April 2018 that Bowyer was involved in illegal bookmaking, the complaint alleges.

The Current was first to report in November 2023 that federal authorities raided Bowyer’s California home a month earlier and seized his phone. He has since pleaded guilty to money laundering and illegal bookmaking.

Article Credit: https://nevadacurrent.com/briefs/mgm-agrees-to-pay-8-5-million-fine-for-money-laundering-violations/