MGM Resorts iGaming partner GVC was approved for a Nevada gaming license last week when the state Gaming Control Board agreed to pass it along to the licensing body, the Gaming Commission. GVC and MGM have formed a joint venture called ROAR Digital that will explore opportunities in the U.S. sports betting market. But before that agreement could be finalized GVC needed to be licensed in Nevada. It was a close call.
Board member Terry Johnson harshly criticized GVC for its role in “grey” markets—jurisdictions where the legality of iGaming or sports wagering is murky. One such area is Turkey, where GVC recently disposed of its interest—without any payment, prior to the finalization of its Ladbrokes-:Coral purchase.
Johnson accused GVC of lacking proper financial controls that caused some GVC employees to embezzle funds, which was then ignored by GVC because the company didn’t want to risk exposure.
“People were defrauding you and because you were engaged in questionable activity, you were without much recourse to go after them because of what you yourself were doing as a company,” he said, as reported by the Las Vegas Review Journal. “I’m actually surprised at the glossing over what has transpired with these payment transactions, particularly as it related to the essence of regulated gaming here in Nevada.”
Johnson asked GVC CEO Kenny Alexander why he didn’t strop it.
“I’m at a loss to understand where exactly did the buck stop in the company if it didn’t stop with you, and why are we to be assured that going forward you’re going to be at the helm of this company in a different manner than what transpired over the past several years?” he asked.
A license for GVC will come with strings attached. The GCB will require GVC to deposit an additional $100,000 to conduct further investigations into the company. Any license will also be provisional for two years, when it will be reassessed.
