Commission approves BetMGM to operate MGM sportsbooks, sets conditions and delayed transition timetable

The Nevada Gaming Commission on Feb. 27 unanimously approved applications from BetMGM, MGM Resorts International and Entain PLC that allow BetMGM to operate race books and sports pools at nine MGM Resorts properties in Las Vegas, with the Gaming Control Board’s recommended conditions attached.

BetMGM counsel Scott Scherer told the commission that BetMGM is a joint venture owned 50% by MGM Resorts International and 50% by Entain PLC and that the company seeks to run a central “hub” at Mandalay Bay with the other MGM race books operating as satellites. "BetMGM is a company that is owned jointly by MGM Resorts International and by Entain PLC. Each company owns 50% of BetMGM, and they have equal representation on a BetMGM board of managers," Scherer said in his presentation.

The commission and presenters stressed that the transition will require extensive planning. Scherer and MGM counsel said the move would be timed to avoid peak sports periods; they said the most likely window is after this season’s March Madness and before the NFL season, and that the parties might need a regulatory waiver if they cannot complete the change before football.

Why it matters

The approval shifts day-to-day operation of multiple on-property race book and sports pool operations to BetMGM while MGM Resorts remains the casino licensee. Commissioners and regulators said the change raises practical questions about employee transitions, surveillance, internal audit, customer rewards and how internal controls will be implemented and reviewed.

Key operational commitments and conditions

- Internal controls: BetMGM and MGM will submit a fresh set of internal controls at least 30 days before any planned transition. BetMGM and MGM attorneys said audit and compliance divisions are coordinating on how BetMGM will be integrated into MGM’s operating controls.

- Timing: The companies told the commission they expect the transition after March Madness and MLB opening day, and before the next NFL season; however they acknowledged the transition could be pushed further if necessary.

- Surveillance and security: MGM will continue to provide surveillance for the books during the interim and under contract arrangements while BetMGM operates the wagering hub at Mandalay Bay, with written procedures on who to call and how incidents are managed.

- Staffing and training: Presenters explained the need to convert ticket writers and other retail staff from MGM payroll to BetMGM payroll with training in BetMGM policies while attempting to maintain pay and benefits parity. Sarah Brennan, BetMGM’s senior director of compliance, told the commission: “We have 11 members with 1 open role on our internal audit team. And for the MGM ticket writer staff, there are 70 full time employees and 30 part time.”

- Compliance and AML: Joshua Weissman, director of licensing at BetMGM, said the company’s compliance department numbers roughly 90 employees across jurisdictions, and Wendy Martin, BetMGM’s director of compliance/AML, said she and a small AML team are based in Las Vegas: “I am one of the individuals that is located in Las Vegas, and I have 4 anti money laundering employees and Title 31 employees that also report to me and reside in Las Vegas.”

Commissioner scrutiny

Commissioners asked detailed questions about the systems integration, the number of ticket writers to be transitioned, who will perform audits and who will be the local points of contact. Scherer and MGM representatives said the companies would introduce BetMGM executives to Gaming Control Board division chiefs to establish direct communication channels and that the board’s audit division would review submitted internal controls.

Vote and next steps

The commission approved the registrations and licensure applications as recommended by the Gaming Control Board, with the conditions on internal controls, surveillance and related items to be satisfied before any operational transition. Commission and company representatives said they will coordinate with the Gaming Control Board's audit and investigations divisions on the 30-day internal-controls review prior to any move.

Ending

With the license approvals formalized, MGM, Entain and BetMGM will proceed with systems, staffing and compliance work and will work with the Gaming Control Board to refile or amend internal controls and other documentation as required before the operational transition is executed.