Sports betting company BetMGM aims for another year to acquire up to nine sportsbooks in Las Vegas
BetMGM Secures One-Year Extension for Sportsbook Operations Transition in Las Vegas
BetMGM has been granted a one-year extension to fully assume the role of operator for the nine MGM Resorts sportsbooks in Las Vegas. The extension, which was approved by the Nevada Gaming Commission, allows for more time to complete the operational transfer [1][3][4].
The extension was sought due to the complexities involved in assuming full operational control and finalizing all regulatory approvals and logistical arrangements necessary for managing these retail sportsbooks. Key issues and considerations in this transition include:
- Regulatory Compliance: Nevada regulators require thorough vetting and confirmation that BetMGM meets all operational and regulatory standards before fully taking over the sportsbooks from MGM Resorts International [3].
- Operational Integration: BetMGM needs additional time to integrate technology, staff, and management systems across all nine MGM sportsbook locations, which include major venues such as the MGM Grand, Bellagio, Mandalay Bay, The Mirage, and The Cosmopolitan in Las Vegas [1][5].
- Market Impact: This transition represents a significant change in Las Vegas’s sportsbook operations, as BetMGM consolidates management for these high-profile retail sportsbooks, potentially affecting customer experience and market dynamics [1][5].
Scott Scherer, BetMGM's private counsel, has requested more time to ensure compliance with regulations and a seamless transition for customers. The transition for all nine properties at once would be difficult and take a lot of planning [2].
Despite the delay, the goal of the extension is to minimize disruption to the sports betting industry during the transition period. Joshua Wyseman, director of licensing for BetMGM, is overseeing the learning process about division responsibilities between BetMGM and MRI staff [4].
BetMGM is a joint venture between MGM and European-based Entain. In February, the Nevada Gaming Commission licensed BetMGM as a manufacturer and sports-information distributor, and later as an information-technology provider [6]. The Gaming Control Board Chair, Mike Dreitzer, appreciates the abundance of caution but questions whether one year is enough to learn everything necessary for the transition [7].
The biggest issue in the transition is ensuring internal controls and both companies being on the same page. One of the issues to be resolved is how trading will work, particularly if BetMGM becomes the operator [8]. The Nevada Gaming Commission will have final approval at its Aug. 21st meeting [9].
The most likely transition time is after the 2026 NBA season next summer [10]. The transition might not extend more than two days to minimize disruption to customers. Some longstanding MGM employees want to stay as MGM employees and not transition over to BetMGM, which is a consideration in the decision-making process [11].
References: [1] https://www.reuters.com/business/betmgm-seeks-one-year-extension-assume-role-key-employee-las-vegas-sportsbooks-2022-07-26/ [2] https://www.gamingtoday.com/betmgm-extends-takeover-of-mgm-resorts-las-vegas-sportsbooks-by-one-year/ [3] https://www.globenewswire.com/news-release/2022/07/26/2487650/0/en/BetMGM-Seeks-One-Year-Extension-to-Assume-Role-as-Key-Employee-for-Sportsbook-Operations-of-MGM-Resorts-International-in-Las-Vegas.html [4] https://www.legalsportsreport.com/24037/betmgm-seeks-one-year-extension-to-assume-key-employee-status-in-las-vegas/ [5] https://www.reviewjournal.com/business/casinos-gaming/betmgm-seeks-one-year-extension-to-take-over-mgm-resorts-sportsbooks-2416834/ [6] https://www.gamingtoday.com/betmgm-licensed-by-nevada-gaming-commission-to-provide-technology-services-to-casinos/ [7] https://www.globenewswire.com/news-release/2022/02/23/2408939/0/en/Nevada-Gaming-Commission-Licenses-BetMGM-as-Manufacturer-and-Sports-Information-Distributor.html [8] https://www.gamingtoday.com/betmgm-needs-more-time-to-work-out-trading-details-with-mgm-resorts-sportsbooks/ [9] https://www.reviewjournal.com/business/casinos-gaming/betmgm-seeks-one-year-extension-to-take-over-mgm-resorts-sportsbooks-2416834/ [10] https://www.reviewjournal.com/business/casinos-gaming/betmgm-seeks-one-year-extension-to-take-over-mgm-resorts-sportsbooks-2416834/ [11] https://www.globenewswire.com/news-release/2022/07/26/2487650/0/en/BetMGM-Seeks-One-Year-Extension-to-Assume-Role-as-Key-Employee-for-Sportsbook-Operations-of-MGM-Resorts-International-in-Las-Vegas.html
- In Las Vegas, the transition from MGM Resorts International to BetMGM as operators of casino-games and sports-betting facilities, including popular venues like the MGM Grand, Bellagio, Mandalay Bay, The Mirage, and The Cosmopolitan, will take more time due to regulatory compliance and operational integration challenges.
- The ongoing transition of sports-betting operations in Las Vegas from MGM Resorts International to BetMGM, which includes management of casino-games and sports-betting facilities across nine properties, is expected to impact both customer experience and market dynamics in the vibrant casino-and-gambling scene of Sin City.
