ShareThe operator, Entain, listed in London, has received complete authorization to do business in Nevada. Currently, the company collaborates with MGM Resorts and runs under the BetMGM brand in the US.
The Nevada Gaming Commission (NGC) unanimously approved the Entain license on May 1st. During a second hearing on Thursday, May 16th, Entain’s top leadership delivered presentations, following which the commission granted the license.
Company chairman Barry Gibson, interim CEO Stella David, and general counsel Simon Zinger were among the senior leaders present.
Operators widely recognize Nevada as one of the most profitable states in the United States. In 2023, the gambling revenue reached an unprecedented peak of $15.52bn, exceeding the previous annual record by 4.6%.
Full Licensing
Initially operating under a two-year license and, more recently, a three-year permit that expired last month, Entain is a joint venture with MGM Resorts using the BetMGM brand.
The NGC granted the temporary licenses because they were concerned about the company’s activities in unregulated markets. The NGC asserts that these issues are now resolved and belong to the past.
Entain was initially granted a two-year license in 2019 when It was known as GVC under its previous management. In March 2020, BetMGM made its debut in Nevada. In 2021, Entain was granted a three-year license.
The company has registered with the NGC as a publicly traded corporation, allowing it to operate without limitations. During the hearing in May 2024, Entain emphasized its decision to exit unregulated markets globally. That brings the total number of markets it previously operated to 140.
It came at a high cost. Gibson commented that although the company lost $100 million in profit by pulling out, it is essential for them to prioritize doing the right thing rather than solely focusing on financial gains.
The board colleagues strongly supported the proposal. Stating that if they truly want to prioritize doing what is morally correct, then it is imperative that they consistently take action in alignment with their values. They decided to leave profitable markets and successfully executed that plan.
Gibson noted during his presentation to the NGC that 95% of the group's operational revenue currently comes from regulated markets.
Entain Business in the USA
Entain operates in the US under BetMGM, a joint venture between Entain and MGM Resorts. The collaboration commenced in July 2018. In 2023, the company generated impressive revenue of nearly $2.00bn (£1.59bn/€1.86bn). BetMGM is now available in 28 states throughout the United States.
In 2023, exciting new launches were announced in Ohio, Massachusetts, and Kentucky, offering online and retail options. Additionally, the company expanded its online presence to Puerto Rico.
The figures for Q1 2024, released in April 2024, emphasized the company's continued growth. In the first quarter, net gaming revenue increased by 2%.
The group also experienced significant growth in customer acquisition, which was attributed to successful engagement during the Super Bowl and March Madness. The report also highlighted the positive effects of enhancing app and product functionalities.
Entain has stated that a better player experience will strategically allow BetMGM to invest in its future expansion in the coming years.
