Dreamers or geniuses: Nevada regulators approve ZenSports license
The Nevada Gaming Commission (NGC) voted Thursday to approve California startup ZenSports a two-year license to operate Big Wheel Casino in Lovelock and the sportsbook at Baldini’s in Sparks, potentially paving the way for peer-to-peer betting and gaming cryptocurrency in the Silver State.
NGC Chairman John T. Moran and Commissioner Steve Cohen approved ZenSports’ application while Commissioner Rosa Solis-Rainey voted in opposition.
The Commission spent more than two hours questioning ZenSports Co-Founder and CEO Mark Thomas and legal counsel Glenn J. Light over the company’s plans to launch its U.S. operations out of Nevada. Earlier in August the state Gaming Control Board unanimously recommended license approval for the West Hollywood-based company.
Founded in 2019 as a peer-to-peer sports betting product, ZenSports operated in 10 countries where it gave bettors the opportunity to wager against one another using cryptocurrency tokens. ZenSports ceased international business in July to focus its attention on receiving state regulatory approval in the U.S.
ZenSports will initially offer traditional sports wagering at Big Wheel and Baldini’s, but Thomas believes peer-to-peer wagering and cryptocurrency will make their way into Nevada in the coming years.
“We do believe that by offering consumers choice to bet against the house or peer-to-peer, some point in the future is a big differentiator,” Thomas said.
Questioning Thursday focused less on ZenSports’ future ambitions and more on its present financial and labor conditions.
Thomas told the Commission that ZenSports, like other technology startups, is driven by growth rather than profitability. While operating international, the most revenue ZenSports made for a single month was approximately $125,000.
“In going over your financing, I made a giant note that read, I can’t decide whether you’re dreamers or geniuses,” Commissioner Cohen said.
Commissioner Rainey expressed skepticism about the company’s apparent lack of capital, absence of a compliance officer and its relatively small staff size of 14 full employees.
“I don’t see this application as one where the company has demonstrated having the adequate experience or financing to warrant approval,” Solis-Rainey said.
Rainey was also critical of ZenSports entering the Nevada market through the acquisition of Big Wheel, a gas station casino with about 50 slot machines. Big Wheel’s current operator, Strategic Gaming Management, will maintain slot management at the casino while ZenSports operates the sportsbook.
ZenSports acquired the casino as a condition for eventually operating a mobile sports betting platform in the state.
Chairman Moran repeatedly injected confidence into ZenSports’ plans, calling its decision to launch in Nevada “exciting for the state.”
“I want to see them have an opportunity to go forward,” Chairman Moran said. “They’ve got 24 months to show us what you’re all about, and I’m sure we’re going to be happy with that.”
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