The former president of the MGM Grand casino in Las Vegas was sentenced to one year of probation Wednesday on a federal criminal charge related to his failure to report millions of dollars in wagers by an illegal bookmaker at his casino.

Scott Sibella, the ex-MGM executive, also was ordered to pay a $9,500 and another $100 special assessment by U.S. District Court Judge Dolly Gee in Los Angeles, according to the Associated Press.

Sibella’s probationary sentence was in line with the sentence recommended by prosecutors and his defense lawyers.

“You will never see me in your court again,” the 61-year-old Nevada resident told Gee, as he also apologized to family, friends and former employers, the AP reported.

Sibella pleaded guilty in January to one count of failure to file reports of suspicious transactions required to be made by casinos under the Bank Secrecy Act. MGM Resorts owns MGM Grand, and more than a dozen other Las Vegas properties, including The Cosmopolitan of Las Vegas.

The sentencing comes more than a week after the Nevada Gaming Control Board filed a complaint against Sibella with the state Gaming Commission for conduct underlying the federal criminal case. The new civil complaint is seeking a a fine and action against Sibella’s gaming license.

Sibella, who was president of MGM Grand from August 2017 through February 2019, admitted knowing that a patron of his casino, former minor league baseball player Wayne Nix, ran an illegal bookmaking business, according to the Department of Justice.

“Despite this knowledge, Sibella allowed Nix to gamble at MGM Grand and affiliated properties with illicit proceeds generated from the illegal gambling business without notifying the casino’s compliance department,” the DOJ said in a press release in January.

“Not only did Sibella allow Nix to gamble at the casino, he also authorized Nix to receive complimentary benefits at the casino, including meals, room, board and golf trips with senior executives and other high net-worth customers of the casinos to further encourage Nix to patronize the casino and/or other affiliated properties,” the DOJ added in the statement.

By 2020, MGM Grand had accepted more than $4 million in cash that was illicit proceeds from Nix’s bookmaking business, the department said.

Nix pleaded guilty in April 2022 Los Angeles federal court to one count of conspiring to operate an illegal sports gambling business and one count of filing a false tax return. He has yet to be sentenced for those crimes.

Sibella became president of Resorts World casino, which is owned by Genting Group, in 2019.

He “was terminated by Resorts World when it learned of the investigation of Mr. Sibella regarding conduct at his prior employer,” Sibella’s lawyers wrote in a court filing. “Mr. Sibella is currently unemployed.”

At the time of Sibella’s guilty plea, the DOJ also said it had resolved an investigation into alleged violations of money laundering laws and the Bank Secrecy Act at MGM Grand and The Cosmopolitan. The casinos agreed to settlements that required them to pay a combined $7.45 million, as well as to enhance their anti-money laundering compliance program.

“In their respective [non-prosecution agreements] MGM Grand and the Cosmopolitan each accepted
responsibility for laundering Nix’s illicit funds and failing to properly file suspicious activity reports (SARs) on Nix, who conducted numerous transactions involving millions of dollars at the casinos between 2017 and 2020,” the DOJ said at that time.

Marriott And MGM Resorts International On Monday, it announced a partnership to connect its loyalty programs and give customers more options to take advantage of.

Under the deal, MGM guests in the US can earn Marriott Bonvoy Rewards points and Bonvoy members, in turn, will have access to 17 MGM properties when they spend their points.

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The 40,000 rooms MGM offers will increase Marriott’s global portfolio by 2.4%.

The partnership seeks to take advantage of frequent or business travelers, who can be fiercely loyal to certain hotel brands in an effort to cash in on the rewards. These loyalty programs are driving businesses and helping to differentiate themselves from competitors at a time when travel continues to recover from a pandemic shutdown.

“The value is in the quantity and quality of the customer,” MGM CEO Bill Hornbuckle told CNBC in an interview Monday.

Bonvoy has more than 180 million members. If members want to use their rewards points for stays on the Las Vegas Strip, currently, their only hotel option is Hotel Cosmopolitan, which MGM bought in 2022.

When the new partnership launches this fall, Bonvoy members will be able to redeem their rewards at 12 more resorts in the strip and five more MGM resorts nationwide.

Marriott CEO Tony Capuano said MGM Resorts brings a wealth of intellectual property to the portfolio in addition to entertainment, upscale culinary options and other one-of-a-kind experiences.

“It is really an exciting opportunity for our members,” said Capuano.

Capuano said last month that the global hotel chain raised its revenue per available room forecast based on a 26% increase in group business this year.

The convention business has yet to fully recover from the lows of the Covid-19 pandemic. However, the conference calendar is packed, and there is optimism that teamwork, along with increased international visits, may push the results even higher.

Las Vegas is one of the top destinations in the United States for conferences, conventions, and meetings.

When asked if the Bonvoy program would give MGM a competitive edge in the syndicated business against competitors such as CaesarHornbuckle said, “The answer is unequivocally yes.”

Meanwhile, casinos face tough year-over-year comparisons in the second half of 2023, and a partnership with Marriott could give MGM a competitive edge in sports betting business BetMGM, which is jointly owned. get.

MGM sportsbook customers will earn Bonvoy points on certain transactions, and Bonvoy members will see marketing of MGM sportsbooks on the Marriott website.

Adam Greenblatt, CEO of BetMGM, stated in a press release announcing the deal that it would create “a truly powerful rewards program that connects our players and Marriott guests to the comprehensive omnichannel BetMGM experience.”

— CNBC’s Don Gil, Jessica Golden and Casey O’Brien contributed to this report.

The Stanley Cup belongs to Sin City.

The Vegas Golden Knights, in only their sixth season in the NHL, won the league championship on Tuesday night, completing a 4-1 win over the Cinderella Florida Panthers.

Vegas’ rapid rise to the top of hockey has taken the sports world by surprise, but that’s exactly what owner Bill Foley intended when he cut his $500 million expansion fee in 2016..

It’s a remarkable feat for an expansion team in any sport, but especially for an ice hockey team in a desert city that, until recently, served as a desert for professional team sports.

Now, those in Las Vegas have become Golden Knights fans.

“I was in Game 5 of the Stanley Cup Final and T-Mobile Arena was absolutely amazing,” Bill Hornbuckle, CEO of MGM Resorce, told CNBC on Wednesday.

On Golden Knights game days, the MGM property surrounding the team’s home, T-Mobile Arena, is packed with customers. That’s what former MGM CEO Jim Morin envisioned in 2017, when he described his efforts to turn Sin City into a sports city.

It’s more than just hockey, too. Vegas’ success in the NHL also underscores the city’s rapid development into a major player in the sport.

Morin defended the Las Vegas Aces in the WNBA, which MGM owned at the time and later sold to Las Vegas Raiders owner Mark Davis in 2021.

Davis apparently bought into the concept of Las Vegas as a sports destination. He moved his football franchise, long a California staple, to the city in 2020. The team’s Allegiant Stadium will welcome its Super Bowl to Vegas for the first time next year.

The Golden Knights have been contenders since their first season. They quickly garnered a fierce fan base as they reached the Stanley Cup Finals in 2018, losing to the Washington Capitals. Between then and this year’s tournament, the Golden Knights have reached the conference finals twice and only missed the playoffs once.

The team often sells out its home games, which attracts locals and tourists alike. The city is black and gold during the hockey season. MGM Resorts The Golden Knights jersey is worn on a replica of the Statue of Liberty outside New York, New York.

The community spirit surrounding an NHL team is felt throughout the city’s sports scene.

“This is an exciting time for our city as we cement our position as one of the best sports and entertainment destinations in the world,” said Herbuckle.

Sandra Douglas Morgan of Las Vegas is now the president of Readers. She told CNBC in a recent interview that her town is poised to capture the imagination of sports fans everywhere, with its entertainment, dining, shopping, and of course, gambling options.

“We’re going to make sure that we continue to provide Las Vegas and our 40 million visitors from around the world with these life-changing experiences,” she said.

Casinos in Vegas also benefit from the city’s inaugural Formula 1 race, which is scheduled for November. Wynn, for example, offers a five-star weekend package priced at $1 million.

While Las Vegas lost out this year to a Major League Soccer expansion team, it looks like the Major League Baseball team is on its way.

The Oakland A’s signed multiple agreements to move the team to the Vegas location. This week, the Nevada Senate approved a bill to raise $380 million in public funds for a professional baseball stadium. The bill now goes to the state assembly.

Rumors and hopes have persisted for years about the potential of an NBA expansion team, although nothing solid has emerged.

For now, though, Las Vegas is deeply fond of the Golden Knights, a pride that forces locals to brave the intimidating strip tourist and traffic to support their team.

And now the Knights are the kings of hockey.

China is letting go of pandemic lockdowns, and American companies are loving it Procter & GambleAnd Starbucks And MGM Resorts International He says the country’s recovery is boosting their overall sales as consumers in their home markets watch their wallets.

With its large population and bloating middle class, China is a desirable market for many multinational companies that have seen their business grow in the United States. But the no-Covid policy, which imposed severe restrictions to stop the spread of the virus, has hurt the country’s economy — and the revenues of many American companies that sell their goods or services there.

After backtracking on policy in December, China’s economy grew 4.5% in the first quarter. US companies have reported a return to demand in China, boosting their sales at a time when many US consumers are cutting back on their spending.

However, the recovery has not been as quick or dramatic as many investors had hoped. Most companies are still waiting to surpass pre-epidemic sales in China. The travel retail sector is taking longer to bounce back. And apples Sales fell in the China region that includes the mainland, Hong Kong and the neighboring self-ruled island of Taiwan.

Morgan Stanley analyst Kelly Kim wrote in a research note that the consumer team in China expects the recovery to come in three phases: spring break in February through April, summer “revenge spending” in May through July, and a stable recovery starting in August. .

US-based restaurants were among the companies that saw demand return in China. But sales haven’t returned to 2019 levels yet.

Starbucks reported that its same-store sales in China rose 3% in the most recent quarter, reversing a decline. Some Wall Street analysts were still expecting same-store sales for the company’s second-largest market to shrink.

A year ago, the coffee giant shelved its outlook for the year, citing lockdowns in China as one of the reasons for the decision. In that quarter, Starbucks store sales in China fell 23%.

Yum ChinaAnd yum brands The master franchisor in China, also said same-store sales grew 8% in the first quarter. China is Kentucky Fried Chicken’s largest market and Pizza Hut’s second largest.

“We benefited from increased mobility and experienced 40% surplus growth in transit and in tourists. However, same-store sales in these locations in the first quarter remained 20% to 30% below 2019 levels,” Yum CEO says. China Joey Wat to analysts on the company’s phone call.

It also appears that Chinese consumers are traveling again as restrictions are lifted, visiting theme parks and casinos. A host of US companies were helped by an increase in spending on travel and leisure at the start of the year.

Disney It promoted “improving financial results” at its resorts in Shanghai and Hong Kong.

“It’s been really gratifying to see the recovery from the pandemic shutdowns that we’ve seen,” Christine McCarthy, Disney’s chief financial officer, told analysts Wednesday on the company’s conference call.

Macau, the world’s largest gambling hub, has seen a resurgence of tourists after testing requirements for inbound travelers from the mainland, Hong Kong and Taiwan were scrapped. Tourism peaks during the Lunar New Year holiday in late January.

MGM Resorts International operates MGM Cotai and MGM Macau locations in the region. Earlier this month, the casino giant reported a quick return to profitability as traffic at Chinese casinos reached pre-pandemic levels. In the first quarter, its China properties generated adjusted earnings of $169 million, or 88% of the division’s adjusted earnings four years ago.

Airbnb She said the Asia Pacific division last quarter saw its largest year-over-year growth in nights and experiences booked. The company shut down its domestic business in China in 2022, closing all property listings on the mainland to focus on helping Chinese consumers find housing abroad instead.

“We are encouraged by China’s recent lifting of travel restrictions although we expect the recovery to be gradual due to challenges with limited flight capabilities,” the company wrote in its quarterly letter to shareholders.

While many US-based companies are benefiting from China’s recovery, companies are still waiting to see the same recovery in travel retail.

SK-II, a luxury skincare brand owned by Procter & Gamble, has seen its sales rebound in China, with the notable exception of the travel retail segment. Overall, Procter & Gamble’s organic sales were up 2% in China. With consumer traffic picking up, the consumer packaged goods giant expects an even bigger rebound in revenue.

Scott Rowe, Chief Financial Officer, Inc textureCouch’s father, Kate Spade and Stuart Weitzman, said Thursday that the company has begun to see an uptick in domestic Chinese travel, including in Hong Kong and Macau. However, he added that global Chinese tourism is below pre-pandemic levels – and said the prospect of more travel could present opportunities in the future.

At its largest unit in China, Tapestry expects a mid-single-digit gain in revenue for the fiscal year, including an expected increase of about 50% in the next quarter. The company’s sales momentum in China is helping offset weakness in the United States, as North American consumers have become more cautious.

Although many companies are struggling with travel retail in China, at least one company is already seeing its sales bounce back at duty free and tourist destinations.

cosmetic giant cutie It said it has seen consumer traffic return to retailers, and noted more flights to the tropical island and Hainan shopping district, where it has dozens of stores. The French-American company owns Covergirl, Kylie Jenner’s beauty lines, and a wide range of perfume and cosmetic brands. Coty’s travel retail sales increased more than 30% in the quarter.

Inventory abundance affected Coty’s sales in China in its most recent quarter, but April sales were still higher than both the year-ago period and the two years prior.

Piper Sandler analyst Corinne Wolfmeyer called the company one of her favorite beauty stocks in a note to clients following Coty’s quarterly earnings report. It cited its performance in part in China.

“We remain cautiously optimistic about China in terms of the near-term cosmetics market, but for COTY specifically, we view the company’s strategic investments in the region and key product launches as a driver of outperforming market,” she wrote.

CNBC channel Melissa Rybko And Stephen Sykes Contribute to this story.

The league announced today that it has suspended five NFL players for violating the NFL’s gambling policy.

The policy prohibits anyone in the NFL from engaging in any type of gambling on the league’s facilities or venues, including practice facilities. The league said its review found no evidence of inside information being used.

The NFL added that no games were hacked as a result of gambling.

Three players — Quintez Cephus and CJ Moore of the Detroit Lions and Shaka Toney of the Washington Commanders — will be suspended indefinitely, at least through the end of the 2023 season, for betting on NFL games last season.

These players will be able to petition to be reinstated at the end of the season.

Two other Lions athletes—Stanley Berryhill and Jameson Williams—were suspended from playing in the first six regular season games. They will be able to participate in off-season and pre-season activities.

The NFL’s campaign comes as 33 states, including Michigan and Washington, D.C., have launched legal betting markets since a 2018 US Supreme Court case paved the way for states to introduce legal sports betting.

Earlier this week, the major professional leagues — the NFL, NBA, NHL, MLB, WNBA, NASCAR and MLS — announced they had joined forces with media companies NBCUniversal and Fox to form an alliance aimed at regulating sports betting advertising as it floods TV, the Internet and print media.

Shortly after the suspension was announced, the Detroit Lions said they had released Cephus and Moore. According to ESPN, the Lions learned of the NFL’s investigation “about a month ago.”

“We are disappointed with the decision-making demonstrated by Stanley and Jameson and will work with both players to ensure they understand the severity of these violations and clarify league rules moving forward,” said Brad Holmes, executive vice president and general manager of the Detroit Lions. in the current situation.

The captains said the team was aware of Tony’s comment. “We have cooperated fully with the NFL’s investigation since notification was received and support the league’s findings and actions,” the team said in a statement.

Tony’s suspension is the leaders’ latest blow. Last week, the district attorney said the leaders would pay $625,000 to settle allegations that the organization failed to return fan ticket deposits.

Former Columbia District Attorney Carl Racine, who sued the Leaders last year, alleged that since 1996 the football team had promised to return fans security deposits for premium seats, but instead seized and spent the money.

A spokesperson for the military commanders said in a statement that the team had not collected security deposits in over a decade and was “actively working to return any remaining deposits since 2014”.

Disclosure: NBCUniversal is the parent company of CNBC.

Amy Howe, CEO of FanDuel, stands out in a crowd — despite her slight stature.

In a room full of executives in the sports or gambling industries, she is often one of very few women.

But Howe has the spotlight, and the megaphone, as CEO of the nation’s leading sports betting company. FanDuel announced this week that it increased its market share during the fourth quarter to 50% of legal sports betting in the US.

Howe joined Caesar CEO Tom Rigg and New England Patriots President Jonathan Kraft are at the MIT Sloan Sports Analytics Conference this week to discuss the deepening relationship between the sports betting industries, the need for better technology for customer acquisition and retention, and the competitive landscape.

Howe’s gender is never shown.

But in many conversations – off stage and behind the scenes – it’s clear Howe is a role model for other women in sports and gambling. And here, you keep good company.

Renee Anderson is the Executive Vice President and Chief Revenue Officer of the National Football League, which has been working for years to get more women on board as football fans. Anderson said that having women in leadership positions has made a difference.

“We’re really working to make sure we have the best people in the best places — if it’s on the field, in the locker room, in the boardroom — driving those positions,” Anderson told CNBC at the MIT Sloan Conference. . “We’re working to make sure we’re not just hiring [women]But we find them, we train them, we provide opportunities for women. We cannot be satisfied.”

Jessica Gilman, co-founder of the MIT Sloan Conference, is CEO of Kraft Analytics Group, a company that provides sports analytics for teams like the New England Patriots. She prioritized putting more women on stage.

“Thirty-eight percent of our speakers this year are women, and that’s my opinion, because analytics gives them different insights and a different voice when they’re in the boardroom,” she said. The result, she said, is a more diverse audience and a better talent pipeline.

Gilman, Anderson, and Howe are among dozens of accomplished women in sports and gambling, who network with each other but also mentor and advise younger professionals.

Sport is a microcosm of the wider world, Gilman said: “I hope more women, especially women in high positions, use their positions of power.”

Molson Course Cooperates with the online sports betting company Kings in a marketing campaign that allows viewers to place bets on the beer company’s upcoming Super Bowl ad, the companies said Monday.

The partnership marks Molson Coors’ return to the Super Bowl after a 33-year hiatus, according to the company. The company said Molson Coors, which makes Coors Light and Miller Lite, has been unable to advertise during the game since 1998 due to an exclusive agreement between parent company AB InBev and the National Football League. That agreement expires in 2022, and Molson Coors is making an impressive return to the advertising event with an ad campaign that leads specifically to its Super Bowl location.

Dubbed the “High Stakes Beer Commercial,” Molson Coors and DraftKings said they are offering viewers a piece of the $500,000 prize pool to correctly predict the contents of the beer commercial. It’s the largest prize pool of any free, non-sports competition offered in DraftKings history, according to a Molson press release.

“After being left out of the big game for over 30 years, we wanted to do something we’d never done before,” said Michelle Saint. Jack, chief marketing officer for Molson Coors, in a statement. “By giving people the opportunity to predict every detail of an ad before it even comes out, we’re bringing our fans along for the ride and getting them just as excited about our return to the big stage as we are.”

According to a new teaser for the announcement, fans 21 and over will be able to place bets through their DraftKings accounts on multiple-choice questions like “Which beer was mentioned first?” during a Super Bowl ad. The contest ends at 3:30 p.m. EST on the day of the game, and winners are expected to be announced the next morning, the company said.

The brands said details of the commercial’s outcome are being kept under wraps. Many different endings have been filmed, and even the CEO of Molson Coors doesn’t know how the commercial will turn out, they said.

For Molson Coors, the partnership benefits from the growing popularity of sports betting. During the first 11 months of 2022, mobile casinos and sports games had revenues of $54.93 billion, according to the American Gaming Association.

“This behavior is everywhere,” Sophia Colucci, vice president of global marketing for Miller Family of Brands, said in an email to CNBC. “It’s part of the culture, and so are our brands. Since we’re already celebrating a historic moment by coming back 30 years later, we might as well make history twice by introducing the first-ever high-stakes ad where people can predict every detail.”

Kings He said on Monday that there was no evidence that the online betting platform’s systems had been hacked after a report that some users had been hacked.

An unknown number of users have discovered unusual activity associated with their DraftKings account that has led to withdrawals from their bank accounts, according to a report by The Action Network and social media posts. Several users described being locked out of their account before noticing the regression.

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“DraftKings is aware that some customers are experiencing irregular activity with their accounts. We currently believe that these customers’ login information was compromised on other websites and then used to access their DraftKings accounts where they used the same login information,” Paul Lieberman, co-founder said. Draughtskings and its global product and technology president, in a statement.

The company said it had identified fewer than $300,000 in customer funds that were affected by the unusual activity and that it intended to “verify any affected customer.”

DraftKings shares fell 5% Monday.

This incident comes at a time when users are increasingly suspicious of online financial transactions following the recent crash of the FTX crypto platform. DraftKings said it strongly encourages users to use unique passwords.

DraftKing competitor FanDuel told CNBC on Monday that it has seen a recent uptick in activity by hackers trying to break into the platform. The company said that attempts have so far been unsuccessful.

“We remind our customers of the importance of good hygiene for cybersecurity. FanDuel encourages customers to remain vigilant and immediately report suspicious activity if they suspect their account has been hacked,” the company said in a statement.

Fox Acquired the right to purchase an 18.6% stake in sports betting company FanDuel Group from the parent company flutterbut not on evaluation, according to a ruling on Friday from an arbitrator in New York.

If Fox exercises its option to acquire the stake, it will be at a price of at least $3.72 billion.

The decision ends a lawsuit that has lasted more than a year between the two companies over the evaluation of FanDuel, which has emerged as one of the leading sports betting platforms in the United States along with services from kingsAnd the Caesar And the MGM.

The price Fox will have to pay depends on FanDuel’s $20 billion valuation, according to the ruling. Flutter, which owns approximately 95% of FanDuel, acquired a 37.2% stake in the company in December 2021 with an implied valuation of $11.2 billion. Fox argued that the price should depend on this limit.

However, Fox could have been asked to pay much more. Analysts at Jefferies said in March 2021 that FanDuel could be valued at $35 billion, which would estimate nearly a fifth of the stake at nearly $6 billion.

“Fox is pleased with the fair and positive outcome of the Flutter arbitration,” the company said in a statement following the ruling. “Fox has no obligation to allocate capital towards this opportunity unless you exercise this option. This optionality underscores the meaningful ownership share in the market driving the online sports betting process in the US the tremendous value that Fox has created as a premier media partner in the sports betting scene.” American”.

Fox has a 10-year option to acquire the stake, which runs through December 2030. The arbitrator ruled that there would be an annual sliding scale of 5% over the purchase price, meaning the current transaction price would be $4.1 billion.

“Today’s decision demonstrates the confidence we have in our position on this matter and provides certainty about the cost of Fox to buy into this company if they so desire,” Flutter CEO Peter Jackson said in a statement.

As part of the arbitration award, Fox said, Flutter cannot pursue the FanDuel IPO without Fox’s consent or the consent of the arbitrator. However, Flutter disputed this claim and later told CNBC in a statement that Fox had no ban on any potential FanDuel IPO, should that happen.

Flutter had previously considered bringing FanDuel to the public, taking advantage of the booming sports betting market.

Sports betting has continued to grow in the US with more states bringing legal sports betting online – as of November 11. 1, 33 states allow some form of sports betting, with California having two measures to legalize it.

This has resulted in higher revenues as well. Commercial sports betting revenue nationwide through August was $3.97 billion, up nearly 70% year over year, according to data from the Gaming Association of America.

But not all public sports betting companies have benefited from this continued growth. DraftKings stock posted its worst ever drop on Friday after the company reported monthly customer growth that was below estimates even as it revised its revenue forecast upward. DraftKings, which is down more than 59% year-to-date, is now valued at just over $5 billion.