BetMGM Seeks One-Year Delay on Las Vegas Sportsbook Takeover
BetMGM is asking Nevada gaming regulators for an additional year to complete its planned takeover of nine retail sportsbooks from its parent company, MGM Resorts International (MRI). The company cited a more complex than expected transition and a desire to minimize disruption for customers as key reasons for the request.
A Complex Transition Prompts a Pause
According to representatives for BetMGM, the process of integrating the sportsbooks has presented several operational and logistical challenges. A key factor has been the time it has taken for BetMGM to get licensed as a “key employee,” a status required for its deeper involvement in the sportsbook operations.
Scott Scherer, an outside counsel for BetMGM, told regulators that aligning the internal controls of two separate companies has been a major focus. The company is also working to define the division of responsibilities between BetMGM and MRI staff to prevent operational issues.
To avoid customer disruptions, BetMGM wants to time the potential final transition for a slower period in the sports calendar. The earliest possible window would be after the 2026 NBA Finals, which would avoid interrupting service during the busy football season.
Further complicating the process is the preference of some long-tenured MGM employees to remain with their current company, and BetMGM is keen to retain that experienced staff.
Rethinking the Takeover Strategy
The request for a delay is not just about timing; it is also about a potential change in strategy. BetMGM is now using this extended period to evaluate whether its current “key employee” status is sufficient to meet all its operational and regulatory needs.
If the company determines the current arrangement is adequate, a full operational takeover might be deemed unnecessary. This would allow BetMGM to avoid disruptions associated with a complete operational transfer.
The original plan, approved by the Nevada Gaming Commission in February, gave BetMGM six months to complete the transition. The deal was intended to have BetMGM running the sportsbooks at nine major MGM casinos in Las Vegas.
The Nevada Gaming Control Board has already signaled its support for the extension request. Board Chair Mike Dreitzer expressed appreciation for the company’s cautious approach, while board member George Assad called the request reasonable.
The final decision on the one-year extension now rests with the Nevada Gaming Commission, which is scheduled to rule on the matter at its August 21 meeting.
Recommended