On May 1, the Nevada Gaming Control Board (NGCB) recommended billionaire media mogul Barry Diller for an unlimited gaming license, two years after Diller was granted a limited license due to an insider trading probe by the Securities and Exchange Commission (SEC) that has since been cleared.
The matter will now proceed to the Nevada Gaming Commission (NGC) for final consideration at its next meeting, May 16.
Diller is the chairman of the holding company IAC/Interactive Corp., the portfolio of which includes brands like the Daily Beast and People magazine. He is also chairman of the online travel firm Expedia.
IAC is the largest individual shareholder of MGM Resorts International (20 percent) and Diller is an MGM board member, which is why he is required to be licensed by state regulators.
When Diller first appeared before the NGCB on March 2, 2022, he was recommended for an unlimited license. But before the NGC could take a final vote, a Wall Street Journal report broke the news that Diller and two others were being investigated by the SEC for insider trading, and the process was postponed.
When the NGC eventually considered the matter in May that year, the meeting was contentious, and commissioners decided to issue a two-year limited license in order for the case to be further resolved. Diller famously shouted out “it’s not fair!” during the hearing before storming out.
Per the WSJ, Diller and his associates, David Geffen and Alexander von Furstenberg, purchased shares in the video-game studio Activision Blizzard Inc. in January of that year, days before the firm announced that it was being acquired by Microsoft. The three men reportedly scored a $60 million profit from the investment.
Diller has vehemently denied all allegations of insider trading, and has argued that it would make no sense to jeopardize his decades-long career and reputation over a simple stock purchase.
At the recent hearing, MGM attorney Sean McGuinness said that Diller was informed April 30 that the SEC investigation had been closed with no further enforcement recommended.
“We simply thought it was an interesting investment,” Diller told the board via video conference, according to the Nevada Independent. “As I said before, I’ve been involved in corporate affairs and corporations for very many decades, and I’ve never traded on insider information. I wouldn’t do this.”
Board member George Assad was not satisfied with the ruling and argued for another limited license with a term of three years.
He asserted that the language of the ruling indicates that there is nothing preventing the SEC from further investigation, but Diller’s attorney Andrew Nussbaum said that such language is standard practice and is not indicative of wrongdoing.
Chairman Kirk Hendrick and board member Brittnie Watkins did not agree with Assad’s dissent and were pleased with how the matter was handled. Watkins was on the board when Diller first appeared, and she indicated that he and his camp had kept in constant contact with state regulators about the investigation over the last two years.
“I appreciate coming before you again,” Diller said at one point, per the Independent. “I think after the two years it seems to have come to a conclusion and I hope that you will consider what has taken place and that we can proceed.”
