Entain’s unconditional approval to operate in Nevada

Lea Hogg 1 month ago
Entain’s unconditional approval to operate in Nevada

Entain has been granted an unconditional licence to operate in Nevada, one of the most lucrative states for operators in the US. The company, which operates as BetMGM in a joint venture with MGM Resorts, received unanimous approval from the Nevada Gaming Commission (NGC) on 1 May, 2024.

“You can’t judge profit against doing the right thing”

Board of Directors, Entain

BetMGM’s journey and future prospects

Previously, Entain operated under temporary licences due to concerns from the NGC about its operations in unregulated markets. However, the company has made significant strides to move past these issues, accepting responsibility and learning from them. This progress was acknowledged by the NGC, leading to the issuance of the unconditional licence on 16 May, 2024.

Entain’s journey began with a two-year license granted in 2019 when it was still known as GVC. BetMGM initially went live in Nevada in March 2020, and Entain was subsequently granted a three-year license in 2021. Now, the company is registered with the NGC as a publicly traded corporation without any operational limitations.

During the May 2024 hearing, Entain emphasized its withdrawal from unregulated markets worldwide, a move that cost the company $100 million in profit. As stated by Barry Gibson, the chairman of the company, one cannot measure the correctness of an action based on its profitability. This viewpoint was supported by the board and led to the company’s departure from markets that were yielding profits.

Now 95 percent of the group’s operating revenue comes from regulated markets. This shift in operations was praised by Commissioner Brian Krolicki during the hearing, who referred to it as a “casebook study on how to put on governance and compliance and ethics issues.”

Entain, operating as BetMGM, is now active in 28 states across the United States, generating close to $2.00 billion (£1.59 billion /€1.86 billion) in revenue in 2023. The company’s Q1 2024 figures further highlight its growth, with a 2 percent increase in net gaming revenue and strong growth in customer acquisition. With an improved player experience, BetMGM is well-positioned for future growth.

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