The Nevada Gaming Commission (NGC) unanimously approved a gaming license for Entain, which jointly owns BetMGM with MGM Resorts. MGM had previously targeted Entain for acquisition but has put a halt to this effort.
It was reported in January that MGM still had Entain ‘on its radar’ for purchase but the company has since confirmed this is no longer the case. Now the two companies continue to work together, as separate entities, through their joint enterprise BetMGM.
The licensing discussed the suitability of several key executives including Entain CEO Jette Nygaard-Andersen, who appeared before the NGC in person. Nygaard-Andersen is set to become a member of BetMGM’s governing board.
Commissioners questioned the European-based executives about the $20.4m Entain paid as a regulatory settlement to Great Britain’s Gambling Commission in August, for social responsibility and anti-money-laundering failures. Despite this flagged issue, the NGC was satisfied with the actions since taken by Entain to modify its compliance procedures.
NGC’s Thursday meeting was the first for newly appointed Northern Nevada Gaming Commissioner Brian Krolicki, who has replaced Ben Kieckhefer. Kieckhefer has now been named as Nevada Governor Joe Lombardo’s Chief of Staff.
This licensing for BetMGM was one of the first public signs of harmony between MGM Resorts and Entain. Nygaard-Andersen has previously dismissed MGM’s $11bn bid to buy Entain as flippant (DraftKings had previously offered to purchase the company for $20bn and was rejected).
MGM’s fourth-quarter earnings call was made earlier this month and MGM CEO Bill Hornbuckle confirmed that the door had closed on any attempt to purchase Entain.
He commented: “The simple answer on Entain is no, we’ve moved on. We remain highly focused on BetMGM’s business through our partnership with Entain and making sure that that business continues to grow.”
