Gaming Companies Entain, Accel Receive Full Nevada Gaming Licenses

Article by : Erik Gibbs May 21, 2024

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Entain and Accel Entertainment have successfully transitioned from operating under limited licenses to being fully licensed by the Nevada Gaming Commission.

This achievement marks the culmination of extensive efforts by both companies to address and resolve previous compliance issues, ultimately allowing them to operate without the restrictions of their former limited licenses.

The Nevada Gaming Commission, known for its rigorous regulatory standards, conducted thorough hearings to evaluate Entain and Accel Entertainment’s compliance and operational integrity.

Entain, a prominent British sports betting and technology company, operates in partnership with MGM Resorts under the BetMGM brand. The company had previously been operating under a series of limited licenses—a two-year license followed by a three-year license that recently expired.

These restrictions were primarily due to concerns regarding Entain’s activities in unregulated markets.

Entain’s attorney, Erica Okerberg, emphasized the company’s proactive approach to addressing past compliance issues. The company took significant steps to ensure such issues would not recur, demonstrating a strong commitment to regulatory compliance and ethical business practices.

This included substantial efforts to improve its compliance program and take full responsibility for past shortcomings.

Barry Gibson, Entain’s Chairman, underscored the company’s dedication to aligning with Nevada’s high regulatory standards. A key part of this strategy involved accelerating its exit from approximately 140 unregulated markets worldwide.

This move, while financially impactful—costing the company $100 million in profits—was essential for maintaining ethical business practices. Gibson noted that these efforts were unanimously supported by the board.

Currently, 95% of Entain’s revenue is derived from regulated markets or markets in the process of regulation. Brazil is an example where the regulatory framework is expected to be completed by the end of the year. Entain has committed to withdrawing from any market that does not meet regulatory requirements as planned.

Commissioner Brian Krolicki praised Entain’s governance and compliance efforts, describing them as exemplary. Entain’s contributions to Las Vegas, particularly through its operations via the Stadium Technology Group, which serves MGM Resorts and other operators.

Illinois-based Accel Entertainment, a leading provider of video gaming terminals, has also successfully secured a full Nevada gaming license.

Like Entain, Accel was previously operating under a two-year limited license, imposed due to regulatory scrutiny and a $5 million fine from Illinois regulators for violating laws related to providing incentives for video gaming establishments.

Erica Okerberg, representing Accel, detailed the company’s efforts to improve its compliance program and resolve outstanding issues. The two-year license granted in May 2022 provided the company with the opportunity to enhance its regulatory adherence and make necessary changes in areas of diligence, compliance, and oversight.

In 2022, Accel acquired Century Gaming, a distributed gaming operator in Nevada and Montana, for $164.2 million. This acquisition expanded Accel’s operational capabilities and presence in regulated markets.

Commissioner Rosa Solis-Rainey commended Accel for its substantial improvements and proactive approach to compliance.

She highlighted the company’s use of resources from the University of Nevada, Las Vegas (UNLV) to develop comprehensive training programs, expressing optimism that these efforts will continue to benefit the company’s regulatory standing.