Gaming board recommends approval for BetMGM to run sportsbooks at nine MGM properties, sets conditions

The Nevada Gaming Control Board voted unanimously to recommend that the Nevada Gaming Commission approve BetMGM LLC’s application to operate race books and sports pools at nine MGM Resorts properties in Las Vegas and to license BetMGM as a nonrestricted gaming entity.

The decision followed a long presentation and questioning about the structure of BetMGM’s relationship with MGM Resorts International and Entain PLC, safeguards for account wagering and large bets, anti-money-laundering controls, recent regulatory actions involving Entain’s Australian unit, and technical audit questions tied to an ongoing field trial in Nevada.

Board members said the approvals aim to let BetMGM take over operations in a phased, controlled transition and to ensure that the licensee will meet Nevada’s reporting and internal-control standards. The board’s recommendation to the Commission included multiple conditions — chief among them that BetMGM submit a written internal control system acceptable to the Control Board Audit Division and an executed reserve agreement pursuant to Nevada Gaming Commission Regulation 5.225 and 22.04 before commencing race and sports wagering operations.

BetMGM, MGM and Entain representatives described a multi-company ownership structure and a phased transition plan. Scott Scherer, counsel for BetMGM, told the board BetMGM and MGMRI each own 50% of the BetMGM joint venture and said BetMGM will run the Mandalay Bay hub and the other nine race books as satellites once transitions are complete. Scherer and other counsel said the move would likely occur in mid- to late summer, after major seasonal wagering periods, and could be further delayed if needed to preserve integrity.

Board members…