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 pressed company witnesses on how patrons’ front-money and credit arrangements would be handled during a transition. Chandler Pohl, senior legal counsel for MGM Resorts International, explained that casino-issued credit remains with MGM while a patron’s front money is the player’s funds and can be withdrawn and used at BetMGM if the player so chooses. MGM and BetMGM said kiosks and account-wagering systems would be available to patrons, and that training and operational changes would be required for retail ticket writers and other frontline staff.

Audit and AML oversight were a major focus. Sarah Brennan, senior director of compliance for BetMGM, described the company’s AML program: a dedicated director of AML supported by roughly 40 AML managers and analysts who handle reviews, reports and filings for mobile operations and sportsbooks. Brennan said BetMGM files currency transaction reports as required for large transactions and performs source-of-funds reviews for high-value wagers.

Board members and staff noted two related areas of ongoing scrutiny: an audit-division review of wagering-account adjustments during the companies’ system changes and a civil enforcement action in Australia. Simon Zinger, Entain PLC general counsel (appearing remotely), told the board that AUSTRAC filed a civil action against Entain Australia on Dec. 16, 2024 alleging deficiencies in the Australian unit’s AML program. Zinger said Entain Australia has implemented remediation measures and that remaining work should be completed by June 2025. He emphasized that the AUSTRAC action applies to Entain Australia and not to Entain PLC itself.

Audit supervisor Shelly Newell told the board the Audit Division would require reports showing user-provisioning and other system access records to demonstrate who accessed gaming systems and to assure patrons’ data and revenue calculations were accurate. Newell said the division is actively working with MGM and BetMGM to resolve open system issues and that representatives put on the record their commitment to cooperate.

The board also asked about a separate technical field trial of a different vendor platform (GAN). Rob Lekites, senior vice president of sports betting for GAN (on Zoom), said the GAN field trial in Nevada has run about 14 months and that Gaming Laboratories International completed technical testing and expected to finish an audit certification by March 5; GAN planned to upload final materials by March 14 to the tech division for review, with a hopeful wrap-up of the field trial by mid‑April. Board members and company witnesses said Nevada’s reporting requirements are unusually extensive and that finishing Nevada-specific reporting has taken longer than some other jurisdictions.

Motion and vote: Judge Assad moved the recommendation to the Commission to approve the nonrestricted item with conditions. The motion passed unanimously: Member Assad — Aye; Member Sandahl — Aye; Chairman Hendrick — Aye.

What the board approved and conditions: The board recommended Commission approval of BetMGM’s applications that would allow it to operate race books and sports pools at the following MGM properties: Aria, Bellagio, Cosmopolitan, Excalibur, Luxor, Mandalay Bay, MGM Grand, New York-New York and Park MGM. The board included these conditions before commencement of operations: - A written internal control system documenting compliance with minimal internal control standards must be received and accepted by the Board’s Audit Division. - An executed reserve agreement must be received and approved by the Audit Division pursuant to Nevada Gaming Commission Regulation 5.225 and 22.04. - The surveillance system must be maintained at or above the approved standard. - Ticket writers shall be employees of BetMGM LLC. - BetMGM must notify the Gaming Control Board chair or the chair’s designee before converting locations between kiosk and manned satellite operations. - Any change or creation of agreements between BetMGM LLC and MGM Resorts Interactive LLC or affiliated companies must be reported to the Gaming Control Board within 30 days. Chief Hoffman clarified these conditions apply to all nine book locations.

Why it matters: The approvals would let a digital-first operator run retail race-book and sports-pool operations across multiple major Las Vegas resorts, shifting who is responsible for high-value wagering reporting and AML filing. The board sought to ensure internal controls, auditability and clear lines of responsibility ahead of the transition.

What’s next: The board’s action is a recommendation to the Nevada Gaming Commission. If the Commission acts on the recommendation and approves it, BetMGM and MGM said the operational transition would be scheduled to avoid major sports wagering peaks and only proceed when internal controls and audit conditions are satisfied.

Ending: Board members thanked investigators and staff and reiterated the board’s focus on audit reporting and patron protections during the transition period. The board’s conditions place clear pre-operation requirements on BetMGM and MGM that must be satisfied before the proposed transition goes forward.