On May 1, 2024, the Nevada Gaming Commission (NGC) unanimously approved the license for Entain, marking a significant milestone for the global betting giant. The final issuance of the license occurred during a second hearing on May 16, 2024, where Entain’s top leadership presented their case for operating in one of the most lucrative gambling markets in the United States.
The key figures who appeared before the NGC included Barry Gibson, the company chairman, interim CEO Stella David, and general counsel Simon Zinger. Nevada, known for its vibrant gambling industry, saw record-breaking gambling revenues of $15.52 billion in 2023—a remarkable 4.6% increase over the previous record.
Entain, which partners with MGM Resorts under the BetMGM brand, had previously operated in Nevada under a restricted license. Initially granted a two-year license in 2019 when the company was still identified as GVC, and subsequently, a three-year license in 2021, Entain had faced scrutiny about its operations in unregulated markets. These prior licenses were granted under stringent conditions due to the NGC’s concerns.
“The company has taken great strides not only to move past some of the historical issues but to accept responsibility for them and find ways to learn and grow,” stated Entain’s attorney, Erica Okerberg, reflecting the NGC’s shifted perspective.
During the hearing, Entain emphasized its strategic withdrawal from 140 unregulated markets globally since its original licensing in 2019. This decision, albeit financially impactful, underlined Entain’s commitment to regulatory compliance. “That came at a big price. We lost $100 million in profit by pulling out, but you can’t judge profit against doing the right thing,” commented Gibson. “My board colleagues supported the proposal. If we’re going to say we have to do the right thing, we have to do the right thing. That meant exiting profitable markets and we’ve done that.”
Entain’s exit from these markets now means that 95% of the company’s revenue is derived from regulated markets, a testament to its renewed focus on ethical operations. “This is a casebook study on how to put on governance and compliance and ethics issues,” said Commissioner Brian Krolicki during the hearing. “It’s really impressive.
. I know the opportunities lost are significant.”
Entain operates in the U.S. through BetMGM, a venture with MGM Resorts that commenced in July 2018. By 2023, the venture had generated nearly $2 billion in revenue and is active in 28 states. The year 2023 saw several new launches, including Ohio, Massachusetts, and Kentucky for both online and retail operations, as well as an online rollout in Puerto Rico.
In its first quarter of 2024, Entain’s performance showcased continued growth with a 2% increase in net gaming revenue and robust customer acquisition driven by successful engagements during the Super Bowl and March Madness. The company also highlighted improvements in app and product capabilities as key drivers of this performance.
Looking ahead, Entain expressed optimism about future investments, pointing to improved player experiences as a solid foundation for BetMGM’s growth. As the NGC now recognizes Entain as a publicly traded corporation authorized to operate without limitations, this license represents not just a regulatory win, but a decisive endorsement of the company’s reformed operational ethos.
Moreover, Entain’s alignment with regulatory standards and ethical commitments positions it favorably amidst the competitive landscape of Nevada’s gambling market. As the company continues to build on its foundational strengths and regulatory compliance, it sets a benchmark for the industry in balancing profitability with ethical responsibility.
Entain’s journey in Nevada serves as a pivotal chapter in its overarching narrative of transformation and growth. The successful acquisition of an unconditional license not only augments its market presence but also solidifies its reputation as a forward-thinking and responsible operator. As BetMGM seeks to penetrate deeper into the U.S. market, this development underscores a strategic advantage, enabling Entain to scale new heights while adhering to rigorous ethical and regulatory standards.
In summary, Entain’s recent licensing success heralds a new era for the company in Nevada, emblematic of its broader commitment to ethical practices and sustainable growth. This achievement underscores the company’s ability to navigate complex regulatory landscapes while staying true to its core values, positioning it for continued expansion and leadership in the global gaming industry.
