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Nevada Gaming Commission Commends MGM’s Compliance Culture Despite $8.5 Million Fine

MGM Resorts was fined $8.5M by Nevada regulators for allowing illegal bookmakers to gamble, but earned praise for maintaining a strong culture of compliance across its properties.
Nevada Gaming Commission Commends MGM’s Compliance Culture Despite $8.5 Million Fine
Photo by Alex Vegas / Unsplash

The Nevada Gaming Commission on Thursday approved an $8.5 million stipulated settlement with MGM Resorts International, following a complaint filed by the Nevada Gaming Control Board. The complaint alleged that MGM properties allowed three illegal bookmakers to gamble over an extended period, despite clear red flags regarding their sources of income.

Commissioner Brian Krolicki, speaking before the agreement’s approval, acknowledged the severity of the breach:

“One bad apple can ruin years of great work.”

Despite the misconduct, Krolicki emphasized MGM’s broader compliance record, highlighting that the company had banned 2,600 patrons over the past decade and filed 46,000 suspicious activity reports — a testament, he said, to MGM’s strong compliance culture.

Commissioner Rosa Solis-Rainey echoed the sentiment, noting that MGM’s commitment to compliance predated any regulatory scrutiny. “This is much different than other cases we’ve seen,” she said.

Representing MGM, Scott Scherer — a former Gaming Control Board member and current member of the company’s compliance committee — admitted that the case revealed vulnerabilities, particularly when employees fail to uphold their responsibilities. He confirmed that all individuals involved had either resigned or been terminated.

MGM General Counsel John McManus reinforced the company's stance:

“Compliance is not something we prioritize only when it’s convenient. It’s what makes the business possible.”

McManus acknowledged room for improvement but asserted that MGM operated within industry best practices.

The case also touches on former MGM Grand president Scott Sibella, who pleaded guilty in federal court to failing to file a suspicious activity report in 2018 and agreed to surrender his Nevada gaming license for five years. Commissioner Abbi Silver recused herself from the MGM vote due to a personal connection with Sibella.

This development follows the Commission’s $10.5 million fine against Resorts World last month, part of ongoing scrutiny first reported by The Current in 2023 involving federal investigations into MGM and Resorts World.