Recent allegations against a top executive with ties both to Genting Group and MGM Resorts International could affect the outcome of bids for three available downstate casino licenses in New York.
Genting and MGM own New York’s two racinos—Genting’s Resorts World NYC in Queens and MGM’s Empire City Casino in Yonkers. It has been widely speculated the two existing facilities will get two of the three available licenses, leaving an intense competition among nine bidders for the other license.
According to a report by the PlayNY news site, regulators studying the current proposals are looking closely at the past of Scott Sibella, who was fired last month as president and COO of Resorts World Las Vegas. Prior to that, he was president and COO of the MGM Grand in Las Vegas for eight years.
Resorts World Las Vegas published a statement saying Sibella was removed because “the company was recently made aware that (he) violated company policies and the terms of his employment.”
Sibella was cleared by the Nevada Gaming Control Board in a 2002 investigation, but according to the report, various media outlets have said federal authorities are still looking into Sibella’s possible connection to an illegal gambling ring during his time at the MGM Grand.
A report in the Nevada Current said federal law enforcement is investigating allegations that current and former MGM Grand employees were using casino assets to pay gambling debts and providing confidential customer data to an illegal gambling ring that operated for almost two decades.
PlayNY quoted an anonymous source as saying the New York State Gaming Commission will be obliged to investigate both Genting and MGM Resorts more closely because of these reports.
“Gaming regulators would have no choice but to ask both companies what they knew (about Sibella), when they knew it, and what they did about it once they found out,” the source said.
“All of it speaks to a company’s ability to be a good corporate citizen. If (NY gambling) regulators are not satisfied with the answers, that could be enough to sway a favorable licensing determination.”
PlayNY’s source also said the allegations reflect on both companies.
“MGM could have bigger problems on its hands and a New York casino license may be the least of their worries. But Genting’s decisions are going to come into question as well,” the source said.
“At the end of the day, (NY) regulators are going to be choosing from some highly qualified candidates (for a downstate license), and the margin for error for those companies is razor thin.”
