Background and Allegations

MGM Resorts International has come under regulatory scrutiny following allegations of facilitating illegal gambling activities involving bookmaker Mathew Bowyer. According to a recent complaint filed by the Nevada Gaming Control Board (GCB), executives were aware of concerns regarding Bowyer’s operations as early as 2015.

Concerns Raised by Customers

The complaint reveals that in April 2018, an MGM customer alerted the company via email to potential misconduct, suggesting that Bowyer was soliciting MGM clients while being involved in illegal bookmaking. This email was forwarded internally but notably did not reach MGM’s compliance department for action.

Previous Violations and Financial Penalties

This revelation follows a prior incident in which MGM paid a $7.45 million fine to California federal authorities for allowing another illegal bookmaker, Wayne Nix, to gamble at MGM properties. Allegations in that case included granting Nix complimentary services and encouraging him to engage in gambling activities.

Currently, MGM Resorts is facing a potential $8.5 million penalty related to ongoing allegations regarding the failure to comply with anti-money laundering regulations.

Investigation Findings

The GCB’s investigation uncovered that MGM executives were suspicious of Bowyer’s financial sources for over three years yet allowed him to gamble on approximately 300 occasions. The investigation also noted that Nix had gambled at MGM properties for 400 days, leading to multiple regulatory violations.

Executive Awareness and Accountability

Former MGM Chairman and CEO, Jim Murren, has refrained from commenting on these allegations. Under his leadership, the company allegedly knew about suspicious activities but failed to take adequate measures. In 2019, Murren, alongside other executives, was informed regarding questionable gambling practices occurring under their watch.

The GCB is expected to discuss a stipulated agreement regarding MGM’s fine, with further repercussions looming for Resorts World, which has already faced fines of $10.5 million related to similar issues, although federal authorities have not yet acted against them.

Conclusion

The developments surrounding MGM Resorts present critical questions about compliance and ethical practices in the gaming industry. With increasing regulatory oversight, the spotlight remains on how casinos respond to internal and external reports of illegal activities.