Sibella bids adieu to casino industry following licence revocation

Scott Sibella, a prominent figure in the gaming industry, has reached a significant crossroads in his long career, concluding with a virtual statement via Zoom following the Nevada Gaming Commission’s (NGC) decision to revoke his gaming license.

Much like Al Capone’s infamous downfall due to tax evasion, Sibella contended that his sentence was largely symbolic, asserting that federal authorities in California sought to “send a message” by making him a scapegoat. He described his position as making him “an easy target” and lamented the repercussions he faces, claiming, “I am taking a massive hit” for the actions of casino executives throughout Las Vegas. Notably, Sibella stands as the sole individual charged in a substantial illegal wagering scandal that has raised serious questions about industry ethics.

“To my knowledge, no hotel president has ever filed a Suspicious Activity Report (SAR),” Sibella stated, emphasizing the industry’s compliance landscape. “The responsibility was always relegated to compliance departments. You don’t have to take my word for it; MGM Resorts has terminated numerous bookmakers who were gambling in its casinos, some of whom had been entrenched in the organization for over two decades.”

The commission’s decision was largely procedural, capitalizing on groundwork already laid by the Nevada Gaming Control Board (NGCB). The motion was unanimously approved, with Commissioner Abbi Silver recusing herself due to a longstanding friendship with Sibella.

The hearing lasted approximately 20 minutes, with Sibella attending via Zoom due to travel restrictions related to his parole. As a result of the commission’s decision, his Nevada gaming license has been revoked, coupled with a fine of $10,000 (£7,955/€9,588). While he could technically appeal the revocation in five years, given the gravity of his admitted offenses, it is unlikely that any operator or regulatory body would endorse his return to the industry at age 62. Thus, Thursday’s hearing exemplified an unofficial retirement for a once-celebrated executive.

“I hope this provides you with the closure necessary to heal and move forward,” Commissioner Brian Krolicki stated solemnly before the vote.

Two Casinos Agree to Financial Settlement, Avoid Criminal Charges

In the wake of the investigation, both the MGM Grand and the Cosmopolitan resorted to a non-prosecution agreement with the Department of Justice, collectively paying a hefty $7.5 million. Sibella’s defense emphasized that he had no involvement in Wayne Nix’s bookmaking activities.

“While we did engage in a few gentleman’s bets, I did not have an account with Mr. Nix. I was not a customer, nor did I procure clients for him,” Sibella stated. “I never authorized any comps outside the established guidelines and had no knowledge of how he settled his markers.”

Nix is currently awaiting sentencing, with a court date set for March 26, 2025.

Statement Primarily Directed at MGM’s Compliance Failures

All of Sibella’s legal complications stem from a single incident that unravels within a larger scandal. In July 2018, while serving as the president and COO of MGM Grand, Sibella failed to file a SAR after Wayne Nix, an illegal bookmaker, paid a casino marker with $120,000 in cash—prompting what should have been an immediate alert.

In a federal California court in May, Sibella was sentenced to one year of probation and fined $9,600 for his negligence, with the plea agreement stating that he was aware of Nix’s illegal activities but chose to ignore them out of concern for his business. During his prepared statement to the commission, Sibella attributed his missteps primarily to MGM’s systemic issues.

“I was never included in compliance meetings nor offered the necessary reporting forms,” he remarked. “I was directed to consult with my superiors, which I did on multiple occasions.”

Sibella recounted meeting Nix during MGM-organized VIP golf outings, noting that Nix had “already been established at MGM Resorts for nearly three years,” operating on credit granted by the casino’s credit department. This led Sibella to assume Nix had undergone a thorough vetting process regarding his legitimate status.

The Scandal’s Scope Exceeds Sibella’s Fallout

The incident prompting Sibella’s downfall is merely one segment of a broader scandal. Following his departure from MGM, he became president and COO of Resorts World Las Vegas, which is now also under scrutiny for anti-money laundering violations tied to illegal bookmaking activities. Sibella was terminated from that position in September for breaching company policy.

The NGCB has since initiated an investigation revealing compliance failures at Resorts World. Mathew Bowyer, another illegal bookmaker affiliated with Nix, reportedly frequented Resorts World, laundering his illicit winnings in the establishment. Notably, much of Bowyer’s proceeds were linked to Ippei Mizuhara, Shohei Ohtani’s former interpreter, who was convicted for misappropriating $17 million to cover debts owed to Bowyer. Furthermore, Resorts World employed Bowyer’s spouse, Nicole, as a personal host, thus benefiting from his gambling activities. Bowyer’s operation reportedly encompassed over 700 clients, with his sentencing scheduled for February 7, 2025.

“Throughout my career, I have been dedicated to elevating the gaming industry and Las Vegas,” Sibella expressed on Thursday. “I’ve been honored to serve on various boards and committees aimed at enhancing our community. Now, I find myself ostracized; casino executive colleagues won’t even reach out. My family has suffered, and the pain of leaving the industry I cherish is overwhelming.”

Before the vote, Commissioner George Markantonis issued a stern warning to Sibella’s colleagues at MGM: “Quite frankly, they let you down, sir.”

Resorts World Faces Ongoing Scrutiny

With Sibella removed from the equation, Resorts World continues to grapple with severe regulatory challenges. The casino has been given a December 9 deadline to respond to a comprehensive 12-count complaint from the NGCB, with their response yet to be disclosed publicly.

On December 6, Resorts World announced significant leadership changes, forming a new board of directors and appointing Alex Dixon as CEO. This new board will be chaired by Jim Murren, the former chairman and CEO of MGM Resorts, during Sibella’s tenure. Interestingly, Dixon was also with MGM at that time.

Reports from the Nevada Current indicate that Murren was aware of allegations surrounding Sibella and other executives as early as 2019. Resorts World has yet to publicly comment on Murren’s recent appointment.