Wayne Nix, a former minor league pitcher who played for Oakland Athletics farm teams, was the mastermind behind a major league illegal sports betting operation in California that involved other former pro athletes and current players as bookies and bettors, according to federal prosecutors.

The rise and fall of Nix’s sports betting business

Nix started his sports bookmaking business about 20 years ago after his six-year minor league career ended, prosecutors said. He used his connections in the sports world to recruit three former Major League Baseball players and a former pro football player as fellow bookies, prosecutors said. His client list included current and former pro athletes from various sports.

The operation eventually began using a Costa Rican business, Sand Island Sports, to create accounts where bets could be placed and tracked and credit limits set, prosecutors said. Bets were placed online or through a call center, though Nix paid winners and kept most of the money from losing bets.

Those who exceeded credit limits were shut off, though exceptions were made, according to court documents. A sports broadcaster’s account was reactivated in February 2019 after he told Nix he was refinancing his home mortgage to pay off his gambling debts. In September 2019, Nix increased the credit limit to a baseball player with debts so he could make additional bets.

Nix also admitted he failed to report $1.4 million in income in 2017 and 2018. He has agreed to pay back taxes and interest of $1.25 million and forfeit $1.3 million seized from bank accounts.

The impact of Nix’s illegal betting on the sports industry

Nix’s illegal betting ring had a significant impact on the sports industry, as it violated the rules and regulations of various leagues and organizations. For example, MLB prohibits players from betting on baseball or gambling illegally on sports. They can bet on other sports if it’s legal. The National Football League policy bars all personnel from betting on football games.

Court records offered no names of the players who worked for Nix or those who placed bets with his business, but they provide a glimpse of the kind of money being wagered, earned and lost. A professional football player paid Nix $245,000 for gambling losses in 2016. An MLB coach paid $4,000 in losses that same year. It was not disclosed if either bet on their own games or their own sports.

One client wagered $5 million on the Super Bowl but it was not revealed if that gambit paid off. A Los Angeles check cashing business that has agreed to plead guilty to failing to prevent money laundering in the scheme cashed over $18 million in checks from two single bettors, prosecutors said.

The MLB began looking into the matter when it learned of it Thursday, but was unaware any of those involved other than Nix, a spokesman said. The NFL did not comment on the case.

The link between Nix’s illegal betting and a former MGM executive

One of the most surprising revelations from Nix’s illegal betting case was the link between his operation and a former MGM executive, Scott Sibella, who is now the president of Resorts World Las Vegas, a new casino resort that opened in June 2023.

According to court documents, Nix and Sibella were friends and business partners, and Sibella helped Nix set up his Costa Rican business, Sand Island Sports, in 2016. Sibella also received a 10% cut of Nix’s profits from the betting operation, prosecutors said.

Sibella was the president and chief operating officer of MGM Grand from 2011 to 2019, and he oversaw the operations of several other MGM properties in Las Vegas. He left MGM in 2019 and joined Resorts World Las Vegas as its president in 2020.

Sibella has not been charged with any crime, but he is under investigation by federal authorities, who have subpoenaed records from MGM and Resorts World related to his involvement with Nix, according to a report by CDC Gaming Reports.

Sibella has denied any wrongdoing and said he was unaware of Nix’s illegal activities. He said he only helped Nix with his legitimate business ventures, such as a sports bar and a golf course in Costa Rica.

Resorts World Las Vegas has not commented on the case, but it is expected to face scrutiny from the Nevada Gaming Control Board, which regulates the casino industry in the state. The board has the authority to revoke or suspend Sibella’s gaming license if it finds any evidence of misconduct or violation of gaming laws.

Nix’s plea deal and possible sentence

Nix has agreed to plead guilty to conspiring to run an illegal gambling operation and faces up to eight years in prison. He is scheduled to appear in court on April 15, 2024, for a change of plea hearing.

Nix’s plea deal also requires him to cooperate with the ongoing investigation and provide information about his co-conspirators, clients, and associates. He may also have to testify against them in court if they are charged or indicted.

Nix’s lawyer, Michael Lipman, said his client regrets his actions and is ready to accept responsibility. He said Nix hopes to receive a lenient sentence in exchange for his cooperation.

Nix’s plea deal is the result of a long and complex investigation by the FBI, the IRS, and the U.S. Attorney’s Office for the Central District of California. The investigation involved wiretaps, undercover agents, confidential informants, and search warrants.

The case is one of the largest and most high-profile illegal sports betting cases in recent years, and it has exposed the dark side of the sports industry and the casino industry in California and Nevada.