Former Strip casino executive stripped of gaming license

Correction: This story has been corrected to report that Scott Sibella, in a statement read to members of the Nevada Gaming Commission, accepted responsibility for failing to file suspicious activities reports. Additionally, in his settlement with the commission, Sibella expressly admitted to all allegations brought against him in the commission’s complaint.

The Nevada Gaming Commission on Thursday took away the gaming license of the former top executive of the MGM Grand and Resorts World Las Vegas.

Commissioners voted 3-0 with Commissioner Rosa Solis-Rainey absent to revoke the license of Scott Sibella by approving a stipulation of settlement signed by members of the Nevada Gaming Control Board on Dec. 10. Commissioner Abbi Silver, citing a longtime friendship with Sibella, recused herself from deliberations.

As part of that settlement, Sibella, 62, will not be able to apply for a gaming license in the state until the end of 2028. He also was fined $10,000.

In January 2024, Sibella pleaded guilty in U.S. District Court in Los Angeles for failing to file suspicious activities reports while employed at MGM to federal officials investigating the presence of illegal bookmakers in violation of anti-money-laundering laws. He was later sentenced to one year’s probation and fined $9,500, plus a $100 special assessment, for violating the federal Bank Secrecy Act.

In a statement read during the commission meeting Thursday, Sibella said others were responsible for filing suspicious activity reports, not him, and that federal authorities investigated him to make an example of him and “wanted to send a message, loud and clear,” that the failure of casinos and their executives to comply with anti-money-laundering laws would not be tolerated.

Sibella, who lives in California under travel restrictions, said that to his knowledge there are no resort presidents who file suspicious activity reports — they’re done by compliance officers.

Nevertheless, Sibella took the blame in his statement to commissioners. Additionally, in his settlement with the commission, Sibella expressly admitted to all allegations brought against him in the commission’s complaint.

“I recognize now that my failure to file a SAR was a violation of law and have accepted responsibility for that. Never in my career did I file or cause a SAR to be filed. To my knowledge, no hotel President ever filed a SAR. It was always left up to compliance. I have set forth these facts and circumstances to let this commission understand the culture in which my failure occurred,” he said. “You don’t have to take my word on it. You only need to look and see that since the investigations into these issues, MGM Resorts 86’d (kicked out) many bookmakers that had been gambling in its casinos, some for over 20 years,” he said.

Commissioner George Markantonis responded that regulators have been criticized for “being too soft-handed” on matters involving regulatory compliance.

“Quite frankly, they (compliance officers) let you down, sir,” Markantois said. “If there’s any good to come out of it for at least the industry, it’s that C-suite executives and owners, ownership groups of all these companies, should take note of the fact that Nevada’s compliance standards are not negotiable.”

Commissioner Brian Krolicki told Sibella that he hoped he could find closure after the commission’s action but that he felt the best way forward was to approve the settlement as presented, knowing that the industry is on notice about the need for compliance in money-laundering.

License revocations are rare

The Control Board’s settlement agreement with Sibella notes that while the disciplinary complaint against the former executive addresses his tenure at MGM Grand, it also resolves any “responsibility attributable” to him at Resorts World, which is involved in two pending disciplinary complaints filed by the board in August.

License revocations are rare. Most often, a settlement involves an agreement for a casino company to voluntarily surrender its license when the two sides agree the accused company doesn’t have the resources to continue disputing a complaint.

According to Gaming Control Board records, the Gaming Commission has revoked 15 licenses between January 1989 and August 2021. The last ones occurred July 30, 2020, when the Stateside Lounge on Las Vegas Boulevard North and its owner, Luca Bertolini, had license revocations when the Metropolitan Police Department determined the bar was a hangout for gang members. The revocations were uncontested.

In a more high-profile case, CG Technologies LLC, formerly known as Cantor G&W Holdings and Cantor Fitzgerald, escaped the revocation of its license when the company was bought out by William Hill in 2019.

CG and Cantor entities paid $9 million in fines and gaming commissioners considered revoking their license after a series of three sports betting complaints over a four-year period from 2014 to 2018.

In 2018, commissioners fined CGT $2 million in a settlement after Control Board investigators determined that the company was taking wagers from outside the state, taking bets after events had concluded, made incorrect payouts to 1,483 bettors and misconfigured a satellite sports book betting station for the 2018 Super Bowl. Previously, CGT paid a fine of $5.5 million in 2014 when the company was known as Cantor G&W Holdings, and $1.5 million in 2016.

Sibella’s gaming career

The action at Thursday’s commission meeting in Boulder City — one of two municipalities within the state that do not permit gambling within their city limits — ends a lengthy saga for Sibella, who was a rising star within the industry in the early 2000s.

The UNLV William F. Harrah College of Hotel Administration alumnus with a degree in hotel administration began his career in hospitality with an internship at the Golden Nugget in downtown Las Vegas and eventually worked his way up to hotel manager. Sibella was named president and chief operating officer of The Mirage in 2007 and subsequently went on to become president and chief operating officer of the MGM Grand.

In 2011, he appeared on “Undercover Boss,” a reality television show in which a top executive, usually in disguise, works among front-line employees.

In Sibella’s appearance, he posed as a roulette dealer and mingled with casino customers.

He capitalized on the notoriety of his appearance on the show and when he became the property’s president hosted “Undercover Weekends” with invited guests at the MGM.

Among the invited guests was Newport Coast, California, resident Wayne Nix, a former minor league baseball pitcher with Modesto in the Oakland Athletics farm system, who illegally took sports bets from major league players of several sports who liked to gamble.

In multiple trips to Las Vegas, Nix would obtain chips on credit, the casino’s credit department would run a background check which would include obtaining credit reports, calling banks and obtaining banking information, conducting public record searches, contacting marketing hosts, asking customers to self-identify their occupation and business position, and contacting unaffiliated casinos to determine the credit worthiness of the customer, according to court documents.

But court documents say Sibella deliberately avoided learning how Nix paid his marker and didn’t file any suspicious activity reports to authorities. Those are required whenever a transaction of more than $5,000 occurs.

When Resorts World Las Vegas was near its opening in June 2021, Sibella took a buyout from MGM to become its top executive.

When at Resorts World, Sibella helped the resort enter into a franchise agreement with Hilton Hotels Corp., which brought the Hilton Honors program and its vast database to the Las Vegas property. Hilton brought its Hilton, Conrad and Crockfords brands to Resorts World.

While at Resorts World, Sibella disclosed to his bosses in September 2023 that he was being investigated by federal authorities for the illegal gambling activity at MGM and he was asked to leave, citing that he violated company policies and the terms of his employment contract.

Federal investigators determined it was a money-laundering scheme and focused their attention on Nix and Sibella.

In a 17-page plea agreement in January, Sibella admitted to knowing Nix ran an illegal bookmaking business, but still allowed him to gamble.

MGM was also penalized

In non-prosecution agreements with the Justice Department, MGM Grand and The Cosmopolitan of Las Vegas were ordered to pay a combined $7.45 million fine as part of a money-laundering settlement for violations of the Bank Secrecy Act.

Under those agreements, MGM Grand paid a monetary fine of $6.5 million, and forfeited $500,000 in proceeds traceable to the violation, which were counted toward the fine. The Cosmopolitan paid a monetary fine of $928,600, and forfeited $500,000 in proceeds traceable to the violation, which also were counted toward the fine.

Pending complaints

Now that Sibella has been disciplined, regulators are expected to move next on Resorts World.

A 12-count complaint against Resorts World’s affiliated holding company, Genting Berhad, alleges that the Las Vegas property allowed gamblers with ties to illegal bookmaking and histories of federal felony convictions to play at its casino.

In that complaint, the Control Board said several individuals placed millions of dollars in wagers at Resorts World over several months, damaging the reputation of Nevada’s gaming industry.

Suspected or known felons wagering at Resorts World included Mathew Bowyer, who earlier in August pleaded guilty to operating an unlawful gambling business, money laundering and subscribing to a false tax return; Edwin Ting, convicted in federal court of conducting an illegal gambling business and known to have ties to organized crime; Chad Iwamoto, convicted in federal court of transmission of wagering information and failing to file a monthly tax return for wages; and another individual suspected of being an illegal bookmaker.

At the time, Resorts World acknowledged the complaint.

“Resorts World Las Vegas is aware of the Nevada Gaming Control Board complaint,” an emailed statement said. “We are committed to doing business with the utmost integrity and in compliance with applicable laws and industry guidelines. We have been actively communicating with the GCB to resolve these issues so we can move forward and focus on our guests and nearly 5,000 team members.”

On the same day the complaint against Resorts World was filed, the board also issued a complaint against Nicole Bowyer, Mathew Bowyer’s wife and a registered independent agent contracted by Resorts World. As an independent agent, Nicole Bowyer was allowed to directly profit from casino wagering.

“Ms. Bowyer received payment from Resorts World despite surely knowing that her husband’s source of funds derived, at least in part, from illegal activity,” a Control Board representative said in a statement in August.

According to the Control Board complaint, Nicole Bowyer earned more than $667,000 in 2022 and 2023 from her husband’s gambling activity at Resorts World.

Nevada Revised Statutes suggest Resorts World could have its nonrestricted gaming license revoked or suspended, and the company could be fined up to $250,000 per count — for a total of $3 million.

Earlier this month, Resorts World and Genting announced the formation of a four-person board of directors helmed by Jim Murren, the former CEO of MGM Resorts International. Murren’s tenure at MGM coincided with Sibella’s, which industry experts say should prompt state gaming regulators to ask questions around what Murren knew about the situation at MGM Grand, when he knew and what he did about it.

In addition to appointing a board of directors, Malaysia-based Genting also named Alex Dixon, a former executive with both MGM and Caesars Entertainment, as CEO of Resorts World Las Vegas.

Dixon’s tenure at Resorts World Las Vegas will begin Jan. 16.

Resorts World posted its worst financial returns in two years during the third quarter of 2024, citing extreme summer heat, consumer economic concerns and domestic election anxiety for the underwhelming results.

It’s unclear what will happen next with Sibella, who described his past two years as “a complete nightmare.”

“I have spent my entire career dedicated to the gaming industry and the betterment of Las Vegas,” he said. “I have sat on various boards and committees all aimed to improve the Las Vegas community. I have helped develop programs and internships at UNLV. 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.”

Contact Richard N. Velotta at rvelotta@reviewjournal.com or 702-477-3893. Follow @RickVelotta on X.