In a rare move, the Nevada Gaming Commission revoked the gaming license of former MGM Grand and Resorts World Las Vegas executive Scott Sibella, concluding a highly publicized investigation into his role in compliance failures. Sibella, 62, faced allegations tied to illegal bookmaker activity and the mishandling of suspicious transactions during his tenure as president and chief operating officer at MGM Grand.
Gaming license revoked over compliance failures:
On Thursday, the commission voted 3-0 in favor of the license revocation, with Commissioner Abbi Silver recusing herself due to a personal connection with Sibella, and Commissioner Rosa Solis-Rainey absent. Along with the revocation, Sibella was fined $10,000 and barred from reapplying for a gaming license in Nevada until the end of 2028.
Sibella’s troubles stem from his failure to file suspicious activity reports (SARs) for transactions involving Wayne Nix, a former minor league baseball player who pleaded guilty to operating an illegal bookmaking operation. Federal investigators linked Nix to money-laundering activities within MGM Grand, where he allegedly paid off a $120,000 casino marker in cash.
In his defense, Sibella asserted that compliance failures were the responsibility of MGM’s corporate compliance team, not individual executives. “You don’t have to take my word for it. You only need to look and see that since the investigation into these issues, MGM Resorts eighty-sixed many bookmakers that had been gambling in its casinos — and some of them for over 20 years,” he stated.
The commission’s decision underscored the importance of strict adherence to compliance standards within Nevada’s gaming industry. As Las Vegas Review-Journal reports, Commissioner George Markantonis noted, “Quite frankly, they let you down, sir. If there’s anything good to come out of it for at least the industry, it’s that C-suite executives and ownership groups should take note of the fact that Nevada’s compliance standards are non-negotiable.”
The settlement agreement, approved during the meeting, protects Sibella from further penalties related to his time at Resorts World, where ongoing investigations allege compliance lapses involving individuals tied to illegal bookmaking and felony convictions. Resorts World and its parent company, Genting Berhad, face potential fines of up to $3 million for 12 counts of alleged regulatory violations.
Sibella’s career in the gaming industry spanned decades, beginning with an internship at the Golden Nugget in Las Vegas and culminating in executive roles at MGM properties and Resorts World. He gained public recognition after appearing on Undercover Boss in 2011, where he portrayed a roulette dealer to connect with frontline employees.
However, his tenure was not without controversy. Federal investigators revealed that Sibella knowingly allowed Nix to gamble at MGM properties despite his illegal activities. According to court documents, Sibella avoided learning how Nix paid his markers and failed to report transactions exceeding $5,000, as required under anti-money laundering laws.
According to KLAS 8 News Now, Sibella’s departure from Resorts World in September 2023 came after he disclosed to his employers that he was under federal investigation. Resorts World cited violations of company policies and employment terms as the reasons for his termination.
Broader implications for Nevada gaming:
The fallout from Sibella’s case extends beyond individual accountability. Both MGM Grand and The Cosmopolitan of Las Vegas were fined a combined $7.45 million as part of non-prosecution agreements with the Justice Department. These settlements highlighted systemic issues in anti-money-laundering compliance across the industry.
Regulators are now focused on Resorts World, which reportedly allowed gamblers with criminal histories to place significant wagers, potentially tarnishing Nevada’s gaming reputation. The company recently announced leadership changes, including appointing former MGM executive Alex Dixon as CEO and forming a new board of directors led by Jim Murren.
In his statement to the commission, Sibella expressed regret over the impact of the investigation on his career and personal life. “I have spent my entire career dedicated to the gaming industry and the betterment of Las Vegas,” he said. “Where I was once celebrated, I am now a pariah. Casino executive colleagues and friends won’t even speak to me. I have caused my family to suffer, and I am pained by the knowledge that I have to leave the industry that I love.”
Sibella hopes the settlement will provide closure, enabling him to move forward after what he described as a “complete nightmare.”
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Vanja Mitic 2024-12-20 14:40:43
