MGM resorts fined $8.5M for AML violations

MGM Resorts has acknowledged past violations and is committed to implementing significant reforms to enhance its anti-money laundering (AML) compliance practices.

On Thursday, the Nevada Gaming Commission (NGC) unanimously approved an $8.5 million fine against MGM Resorts, addressing a series of allegations pertaining to its AML protocols.

This decision marks the NGC’s second substantial ruling related to AML within the last month, underscoring an industry-wide emphasis on regulatory compliance along the Las Vegas Strip. Notably, both settlements are linked to Scott Sibella, former president of MGM Grand, who transitioned to Resorts World Las Vegas (RWLV) in 2019. The fine imposed on MGM is slightly less than the $10.5 million penalty levied against RWLV in the previous month.

Sibella, who was dismissed by RWLV in 2023, received a one-year probation sentence for several federal offenses, including the failure to file a suspicious activity report (SAR). In contrast to RWLV, which neither admitted nor denied the allegations, MGM Resorts has officially accepted accountability for its actions.

John McManus, MGM’s Chief Legal Officer, stated:

“We did not put up obstacles; we cooperated, and we knew that ultimately a sanction would be forthcoming.”

This acknowledgment of responsibility by MGM Resorts reflects a significant shift towards prioritizing compliance in an industry where oversight is becoming increasingly stringent. With regulatory bodies raising the bar for AML practices, it is paramount for operators to adopt robust measures that not only comply with legal standards but also promote ethical business conduct.

As the gambling sector continues to evolve, maintaining regulatory adherence is not merely about averting fines, but also about cultivating a trustworthy relationship with customers and stakeholders. The current climate around AML compliance highlights the necessity for transparency and accountability among operators.

Moreover, the ramifications of non-compliance extend beyond financial penalties; they can lead to reputational damage that significantly impacts customer trust and long-term viability in the market. Therefore, it is imperative for all gaming establishments to regularly review and enhance their AML strategies to align with best practices and current regulatory expectations.

In conclusion, the recent actions taken against MGM Resorts and RWLV serve as a stark reminder of the growing importance of AML compliance within the gambling industry. By learning from these cases and implementing comprehensive reforms, operators can not only avoid future penalties but also foster a more sustainable and accountable gaming environment.