Entain, a prominent player in the global gaming industry, has been unanimously granted an unconditional license to operate in Nevada by the Nevada Gaming Commission (NGC). The approval, which came on May 1st, was followed by the issuance of the license on May 16th after a detailed presentation from Entain’s senior leadership team. This milestone is a significant achievement for Entain, positioning it firmly within one of the most lucrative gaming markets in the United States.
The senior leadership team that presented to the NGC included company chairman Barry Gibson, interim CEO Stella David, and general counsel Simon Zinger. Their comprehensive presentation showcased Entain’s commitment to regulatory compliance and ethical business practices. Nevada, renowned for its robust gambling industry, saw a record-breaking gambling revenue of $15.52 billion in 2023, underscoring the importance of this approval for Entain’s strategic growth.
Full Licensing Approval from Nevada Gaming Commission
Entain, which operates in partnership with MGM Resorts under the BetMGM brand, had previously been functioning under temporary licenses due to concerns about its operations in unregulated markets. Initially granted a two-year license in 2019, followed by a three-year license in 2021, Entain has now secured a permanent, unconditional license. This reflects the NGC’s confidence in Entain’s efforts to address and rectify past operational issues.
Erica Okerberg, attorney for Entain, emphasized the company’s commitment to learning and growth, stating, “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.” This sentiment was echoed by the NGC, which noted the company’s significant progress in regulatory compliance and governance.
Commitment to Regulated Markets
During the May 2024 hearing, Entain highlighted its strategic withdrawal from 140 unregulated markets worldwide, a move that cost the company $100 million in profit. Chairman Barry Gibson affirmed, “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.” This decision underscores Entain’s dedication to ethical practices and long-term sustainability.
Gibson also pointed out that 95% of the group’s operating revenue now comes from regulated markets, showcasing the company’s focus on governance and compliance. Commissioner Brian Krolicki praised Entain’s efforts, describing them as a “casebook study on how to put on governance and compliance and ethics issues.” This recognition from the NGC is a testament to Entain’s rigorous standards and strategic vision.
Entain’s Operations in the US
In the United States, Entain operates through the BetMGM joint venture with MGM Resorts, established in July 2018. BetMGM reported nearly $2.00 billion in revenue in 2023 and is now active in 28 states. The company’s expansion in 2023 included new launches in Ohio, Massachusetts, Kentucky, and Puerto Rico, enhancing both online and retail presence.
Entain’s Q1 2024 figures, released in April, demonstrated continued growth with a 2% increase in net gaming revenue. The company also reported robust customer acquisition, driven by successful events such as the Super Bowl and March Madness. Additionally, improvements in app and product capabilities have contributed to an enhanced player experience.
Future Growth Prospects
Looking ahead, Entain is poised to capitalize on its strengthened market position and improved regulatory standing. The company is focused on enhancing the BetMGM player experience, investing in future growth, and leveraging its comprehensive compliance framework. These efforts are expected to drive sustained growth and reinforce Entain’s reputation as a leader in the gaming industry.
In summary, Entain’s receipt of an unconditional license from the NGC marks a pivotal moment for the company. This approval not only opens new opportunities in the lucrative Nevada market but also reflects Entain’s unwavering commitment to ethical practices, regulatory compliance, and strategic growth. As Entain continues to expand and innovate, its focus on doing the right thing remains at the core of its operations.
