Former MGM Resorts International CEO and Chairman Jim Murren, along with Nevada gaming regulators, were aware of allegations that company executives were turning a blind eye to gamblers with questionable sources of income. The allegations came to light through emails and text messages included in a 2020 lawsuit obtained by the Current. Scott Sibella, former president of MGM Grand, recently entered a guilty plea for failing to report suspicious activity related to an illegal bookmaker. MGM Resorts has agreed to pay a fine as part of a non-prosecution agreement for accepting over $4 million from the illegal ring. The company has been accused of providing drugs and prostitutes to high rollers and overlooking criminal behavior to keep big players happy.
Murren, who left the company in 2020, has not commented on the allegations. Sibella, who resigned voluntarily as part of cost-cutting measures in 2019, admitted to knowing about the illegal activities but chose not to investigate due to his position. Casinos are required by federal law to report suspicious transactions and know the source of gamblers’ funds. An investigation was initiated into the allegations, but it is unclear if regulators looked into claims regarding Sibella and compliance with Know Your Customer protocols.
The Gaming Control Board exonerated Sibella after an investigation last year and did not respond to questions about Cipriani’s claims. MGM maintains that they fully cooperated with the investigation. The surveillance employee accused of selling customer information denies the allegations and continues to work in the gaming industry. The situation raises concerns about the integrity of the industry and the need for stricter oversight to prevent illegal activities.
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