Entain Gets an Unconditional License to Operate in Nevada
Entain Gets an Unconditional License to Operate in Nevada from the Nevada Gaming Commission. Up to this point, the company had been operating as BetMGM in the United States through a partnership with MGM Resorts.
The Nevada Gaming Commission (NGC) gave the green light to Entain’s license on May 1st. The license was then officially issued during a subsequent hearing on May 16th, where presentations were delivered by Entain’s top executives, such as company chairman Barry Gibson, interim CEO Stella David, and general counsel Simon Zinger.
Nevada is recognized as one of the most lucrative states for operators in the US, with gambling revenue hitting an all-time high of $15.52 billion in 2023, exceeding the previous annual record by 4.6%.
Entain Had to Go thru Several Challenge to Obtain the Gambling License in Nevada
Entain plc, is a global sports betting and gambling corporation that is well-in the sports betting industry. The company is publicly traded on the London Stock Exchange and is included in the FTSE 100 Index. Some of its well-known brands include bwin, Coral, Ladbrokes, PartyPoker, and Sportingbet.
However, until now, they have never been able to obtain a Gambling License in Nevada. This is because they were concerned over some of their past business practices in unregulated gambling markets. Thus, they could only get a limited license in Nevada.
To rectify the matter, Entain has taken significant steps to address past business practices and comply with regulatory standards. Okerberg, the company’s attorney, emphasizes Entain’s dedication to rectifying past issues and implementing measures for improvement. Chairman Barry Gibson highlights Nevada’s regulatory standards as the “gold standard” and stresses Entain’s commitment to meeting these benchmarks. Even if it means withdrawing from profitable but unregulated sports betting markets globally.
Entain Gets an Unconditional License to Operate in Nevada from Nevada Gaming Commission
Entain obtained its initial two-year license in 2019 while still operating as GVC under its previous leadership. In March 2020, BetMGM was launched in Nevada. Subsequently, in 2021, Entain was granted a three-year license. The company is currently registered with the NGC as a publicly traded corporation with unrestricted operational capabilities.
During the May 2024 hearing, Entain emphasized its decision to withdraw from unregulated markets worldwide, which encompassed a total of 140 previously operated markets.
“This decision came at a substantial cost. We incurred a loss of $100 million in profit by exiting these markets, but prioritizing ethical conduct outweighs financial gains,” stated Gibson.
“My fellow board members supported this proposition. If we claim to prioritize ethical conduct, we must act accordingly. This entailed exiting profitable markets, and we have successfully accomplished that.”
During the presentation to the NGC, Gibson highlighted that 95% of the group’s operating revenue now originates from regulated markets.
Commissioner Brian Krolicki commended the company’s approach to governance, compliance, and ethics, stating, “This serves as an exemplary case study on how to address these issues. It is truly impressive, although the missed opportunities are significant.”
