MGM Resorts International took its first step toward managing BetMGM, the race and sportsbook operation it co-owns in a 50-50 partnership with Entain PLC, at nine Las Vegas casinos.
The Nevada Gaming Control Board on Wednesday unanimously recommended approval of an amended order of registration that will enable MGM employees to operate the company’s sportsbooks on the Strip.
The recommendation will be considered Feb. 27 by the Nevada Gaming Commission.
MGM plans to operate the sportsbooks at Mandalay Bay, Aria, Bellagio, The Cosmopolitan of Las Vegas, Excalibur, Luxor, MGM Grand, New York-New York and Park MGM from a hub at Mandalay Bay using Entain technology.
Nevada law requires that before any entity may be licensed to conduct a satellite race and sports operation it must first operate in a brick-and-mortar location, which is requiring a transition within the partnership.
The two companies opted to wait until after the Super Bowl and March Madness and before the heart of the baseball season to make the registration transition. As part of the transition, MGM also will file for key employee licenses for leaders to be responsible at each sportsbook.
In testimony during the 45-minute hearing, officials with both companies assured regulators that they would pay close attention to complying with federal anti-money-laundering laws and technology concerns that have resulted in consumer complaints.
Australian gaming regulators in December accused Entain of failing to maintain a compliant anti-money-laundering program. The Australian Transaction Reports and Analysis Centre, the agency responsible for detecting, deterring and disrupting criminal abuse of the country’s financial system, said Entain’s board and senior management did not have adequate control over its anti-money-laundering program.
Board members also questioned interim Entain CEO Stella David about the abrupt departure of former CEO Gavin Isaacs, who was on the job five months before leaving the company this week.
Board Chairman Kirk Hendrick said it will be important during the transition that regulators know exactly who to call if any problems emerge.
Hendrick said he was told that there was “finger-pointing” between the companies when asked to clarify issues that arose from the board’s Audit Division.
MGM Vice President and Legal Counsel Chandler Pohl said in the early going, there was confusion over which company was responsible for communicating with regulators.
“Once MGM realized the extent of the need to correct those failures, MGM took that role back in-house and increased our staff by 10 to address basically coming out of a field trial, really having the experience to know how the product works, and then expanding our own duties,” Pohl said.
Hendrick also was reassured that there’s adequate communication between the board and the companies after remarks from Shelley Newell, supervisor of the Control Board’s Audit Division.
Wednesday’s meeting was the first for new board member Chandeni Sendall, who was appointed by Gov. Joe Lombardo to replace Brittnie Watkins on the three-member panel.
Contact Richard N. Velotta at [email protected] or 702-477-3893. Follow @RickVelotta on X.
