The Nevada Gaming Commission Thursday signed off on BetMGM, MGM Resort International’s joint venture with European-based Entain, to run its Las Vegas sportsbook operations.
BetMGM was initially licensed as a manufacturer and sports information distributor and later registered as an information-technology service provider. That license was thought to allow BetMGM to have “substantial involvement” in the race and sports operations at MGM properties, but concerns arose with regard to MGM’s role. They led to BetMGM filing for additional licensing as a key employee, so it could be involved in the sports operations, according to BetMGM private counsel Scott Scherer. That license was granted in December.
Thursday’s approval allows BetMGM to operate sportsbooks at nine MGM casinos in Las Vegas. It will take over operations at MGM’s hub at Mandalay Bay and run all of the other sportsbooks from that location.
The transition is complicated, so it won’t take place until between the opening of the Major League Baseball season and the start of football season, Scherer said.
The current 70 full-time and 30 part-time sportsbook employees fall under MGM, but will transition over to BetMGM, Scherer said.
The two operators will coordinate player rewards. BetMGM represents the sportsbook and racebook, while MGM represents only the casino.
“There’s a lot of coordination on how comps will work,” Scherer said. “The biggest thing is how they integrate the systems and make it a seamless experience for the customer.”
BetMGM employs 115 people in Nevada today, Scherer said.
“There’s this perception that BetMGM is either across the country or across the ocean, but they have a lot of key people here,” Scherer said. “One of them will be on your agenda next month for licensing as a key executive.”
Scherer said compensation for the MGM ticket writers is expected to be the same. It will be a seamless transition, only the paychecks will be coming from a different entity.
MGM will provide surveillance, with a contract between the two, since MGM has the cameras and systems in place.
The BetMGM Nevada app offers sports fans what is called “significant enhancements” to the mobile sports betting experience, including an exponential increase in prop and parlay wager options, live streaming capabilities, digital deposits and withdrawals.
