The Nevada Gaming Commission granted a temporary three-year license Thursday to British sports betting company Entain, some two years after regulators limited its permit to 2021 over ongoing concerns about its business practices.
MGM Resorts International and Entain, previously known as GVC Holdings, have partnered with BetMGM, which operates in 12 states. In 2019, Entain came under fire from the Nevada Gaming Control Board and the state’s Gaming Commission over business in unregulated markets.
Control Board members questioned Entain officials intensely at its May 5th meeting before recommending a three-year license instead of two years as it did in 2019.
Entain’s Las Vegas-based attorney Mark Clayton told the Commission that the company has expanded its board of directors’ portfolio, added new non-executive directors, and strengthened its governance and compliance processes and regulatory strategy to focus on regulated markets, responsible gaming, and sustainability.
“We believe this demonstrates that the Nevada Gaming Control Board and Nevada Gaming Commission’s trust in Entain in 2019 was well placed,” Clayton said.
Entain Non-Executive Chairman Barry Gibson said the company has made lot of changes since the original licensing in 2019. He said they don’t operate in illegal markets.
“It seems like the company has really turned the corner and turned the page,” said Commission Chairman John Moran.
Commissioner Deborah Fuetsch said she appreciated all of the changes that have been made, citing improvements in payment processing and compliance. She said Entain is “almost there on the trust” and once the company “cleans up some litigation and outstanding legacy issues,” it will be on the mark. She applauded executives for their efforts.
“If you guys would have come in today as the old GVC slash Entain company with little to no effort to make these changes, it could have been a pretty dark day. Today it’s a new company. That had to happen. A couple of years ago when you did your MGM deal, they were the legitimate partner then. Now that partnership is balancing out with all of the efforts you have made. Even in the last two weeks, you’re listening. This presentation is different from the one the Board saw. You listened and understood the needs and made some changes.”
Commissioner Rosa Solis-Rainey commended the company on significant changes and how it made “great strides” in moving to regulated jurisdictions and “not giving lip service to player protection. I’m comfortable going forward. You’ve made great strides, but I would like to see it get ingrained in your company culture.”
Entain CFO Rob Wood told the Commission the company is in a good financial position and growing its online business. Revenue increased by 28% in 2020 and adjusted earnings were up 50%. Revenue during the first quarter rose 32%. It’s in 27 regulated markets around the globe with a recent expansion in Europe through acquisitions.
“We’re the 50th largest company on the London Stock Exchange and, more important, we have the flexibility and firepower to pursue our strategy,” Wood said. “One of those growth strategies is around mergers and acquisitions.”
Commissioner Fuetsch said the company looks financially stable with significant liquidity and acceptable leverage.
