BetMGM aims for another year to acquire ownership of nine sportsbooks in Las Vegas
BetMGM Seeks Additional Year for Las Vegas Sportsbook Transition
BetMGM, a joint venture between MGM Resorts International (MRI) and Entain, has requested an additional year to finalize the transfer and fully assume control of nine Las Vegas retail sportsbooks previously managed by MRI. The Nevada Gaming Commission, which approved BetMGM in February, will have the final say at its Aug. 21st meeting.
The transition process is expected to take more than two days, potentially causing disruptions to customers. The trading arrangement and employee transition are significant factors in deciding whether the transition is worthwhile. BetMGM has been acting as a key employee for several months, but taking over as the full operator of nine sportsbooks simultaneously may require more time.
Scott Scherer, BetMGM's private counsel, explained that the additional time is needed to ensure compliance with regulations, understand employee interactions, and anticipate potential issues during the transition. One of the issues to be resolved is how the trading will work if BetMGM becomes the operator.
MRI's super trader may not be needed if BetMGM is the operator. Joshua Wyseman, director of licensing for BetMGM, is learning about the division responsibilities between BetMGM and MRI staff. Gaming Control Board Chair Mike Dreitzer expressed concerns about whether one year is enough time to make a final determination about taking over the sportsbooks and ensuring a minimum of disruptions.
The license allows BetMGM substantial involvement in the race and sports operations at MRI properties, but concerns about MRI's role led to BetMGM filing for additional licensing as a key employee. Initially licensed as a manufacturer and sports-information distributor, BetMGM later registered as an information-technology provider.
Some longstanding MGM employees do not want to transition over to BetMGM, which is a consideration before making the transition. Scherer suggested that BetMGM might decide at the end of the process that being a key employee is sufficient and less disruptive than taking over as the full operator of nine sportsbooks simultaneously. The most likely transition time for BetMGM taking over the retail sportsbooks is after the 2026 NBA season next summer.
The transition process involves resolving internal control issues and ensuring both companies are on the same page. BetMGM was given six months to complete the transition before the start of the football season, but requested more time due to the complexity of the transition. The Nevada Gaming Commission will make a decision on the extension at its Aug. 21st meeting.
In the midst of BetMGM's request for an additional year to fully take over nine Las Vegas sportsbooks, concerns about potential disruptions to customers and the need for a smooth transition in trading and employee responsibilities have arisen. With the transition expected to be more than just a two-day process, Gaming Control Board Chair Mike Dreitzer has expressed doubts about whether a year is sufficient to ensure a minimal disruption.
