Nevada gambling regulators approved on Thursday a limited license for
MGM Resorts International
shareholder
Barry Diller
to work in the state’s casino industry, after questioning the billionaire about a federal investigation into his purchases of
Activision Blizzard Inc.
shares.
The Nevada Gaming Commission, which enforces anticorruption regulations in the state’s gambling industry, voted 4-1 to approve Mr. Diller for a two-year license while the investigation is pending, rather than granting him a full license.
Mr. Diller, chairman of
IAC/InterActiveCorp.
and an MGM Resorts board member, can apply for a full license after those two years, and he can return sooner if the probe is settled with no charges, according to the commission. Mr. Diller can continue to serve as a board member under the limited license and engage in other business activities tied to MGM. The limited license only restricts the time frame for which he is approved
The Wall Street Journal reported in March that federal prosecutors and securities regulators were investigating large bets that Mr. Diller made, along with his stepson
Alexander von Furstenberg
and
David Geffen,
on
Activision
ATVI -0.23%
Blizzard shares, days before the videogame maker agreed to be acquired by
Microsoft Corp.
on Jan. 18.
Mr. Diller has said that he had no prior knowledge of the acquisition, and that the purchase was a coincidence. “I recognize that such a neat coincidence, people are going to look at it,” Mr. Diller told the commission Thursday. “I thought immediately that they would…I said, ‘Let’s be certain we keep all the records so that whenever this is investigated, which it surely will be, that facts can be known, which is, we had no knowledge.’ ”
Commissioner
Steven Cohen
said the commission doesn’t have any concerns about Mr. Diller’s character, but the investigation created an “imperfect” record for him as an applicant for a license. “We respect you sir,” Mr. Cohen said.
Mr. Diller and his internet holding company, IAC/InterActiveCorp., announced in 2020 that the company had spent more than $1 billion for a 12% stake in MGM Resorts, as MGM and other casino companies pursue the growth in online gambling in the U.S.
In a May 9 letter to shareholders, IAC Chief Executive
Joey Levin
said the company’s stake in MGM Resorts stood at 15%. Mr. Levin and Mr. Diller are MGM Resorts board members.
“We are pleased that, as anticipated, our license application was approved in Nevada,” an IAC spokeswoman said by email. “The limitations are procedural in nature and we expect no issues with respect to Mr. Diller’s long-term licensure in the state.”
Mr. von Furstenberg and Mr. Geffen haven’t responded to requests for comment.
The gaming commission had delayed Mr. Diller’s licensing in March after federal authorities launched insider-trading investigations into his share purchases of Activision.
Regulators said the commission didn’t have access to information from federal authorities.
IAC/InterActiveCorp. shares closed Thursday at $81.32, up more than 2.5% for the day. Shares of MGM Resorts International rose about 2% Thursday to close at $33.65 a share.
Commissioner
Ogonna Brown,
who voted against limiting the license in favor of granting a full license, said setting aside the timing of the share purchase, she didn’t see anything that questions Mr. Diller’s integrity or character.
Nevada gambling regulators investigate the backgrounds of executives and major shareholders of casino companies and determine a person’s “suitability” to be licensed. The state’s regulations are intended to prevent corruption or criminal activity in the industry.
IAC, which has digital holdings including The Daily Beast and Care.com, has said it plans to use its internet expertise to help MGM Resorts expand its online gambling business.
Write to Katherine Sayre at katherine.sayre@wsj.com
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
Nevada gambling regulators approved on Thursday a limited license for
MGM Resorts International
shareholder
Barry Diller
to work in the state’s casino industry, after questioning the billionaire about a federal investigation into his purchases of
Activision Blizzard Inc.
shares.
The Nevada Gaming Commission, which enforces anticorruption regulations in the state’s gambling industry, voted 4-1 to approve Mr. Diller for a two-year license while the investigation is pending, rather than granting him a full license.
Mr. Diller, chairman of
IAC/InterActiveCorp.
and an MGM Resorts board member, can apply for a full license after those two years, and he can return sooner if the probe is settled with no charges, according to the commission. Mr. Diller can continue to serve as a board member under the limited license and engage in other business activities tied to MGM. The limited license only restricts the time frame for which he is approved
The Wall Street Journal reported in March that federal prosecutors and securities regulators were investigating large bets that Mr. Diller made, along with his stepson
Alexander von Furstenberg
and
David Geffen,
on
Activision
ATVI -0.23%
Blizzard shares, days before the videogame maker agreed to be acquired by
Microsoft Corp.
on Jan. 18.
Mr. Diller has said that he had no prior knowledge of the acquisition, and that the purchase was a coincidence. “I recognize that such a neat coincidence, people are going to look at it,” Mr. Diller told the commission Thursday. “I thought immediately that they would…I said, ‘Let’s be certain we keep all the records so that whenever this is investigated, which it surely will be, that facts can be known, which is, we had no knowledge.’ ”
Commissioner
Steven Cohen
said the commission doesn’t have any concerns about Mr. Diller’s character, but the investigation created an “imperfect” record for him as an applicant for a license. “We respect you sir,” Mr. Cohen said.
Mr. Diller and his internet holding company, IAC/InterActiveCorp., announced in 2020 that the company had spent more than $1 billion for a 12% stake in MGM Resorts, as MGM and other casino companies pursue the growth in online gambling in the U.S.
In a May 9 letter to shareholders, IAC Chief Executive
Joey Levin
said the company’s stake in MGM Resorts stood at 15%. Mr. Levin and Mr. Diller are MGM Resorts board members.
“We are pleased that, as anticipated, our license application was approved in Nevada,” an IAC spokeswoman said by email. “The limitations are procedural in nature and we expect no issues with respect to Mr. Diller’s long-term licensure in the state.”
Mr. von Furstenberg and Mr. Geffen haven’t responded to requests for comment.
The gaming commission had delayed Mr. Diller’s licensing in March after federal authorities launched insider-trading investigations into his share purchases of Activision.
Regulators said the commission didn’t have access to information from federal authorities.
IAC/InterActiveCorp. shares closed Thursday at $81.32, up more than 2.5% for the day. Shares of MGM Resorts International rose about 2% Thursday to close at $33.65 a share.
Commissioner
Ogonna Brown,
who voted against limiting the license in favor of granting a full license, said setting aside the timing of the share purchase, she didn’t see anything that questions Mr. Diller’s integrity or character.
Nevada gambling regulators investigate the backgrounds of executives and major shareholders of casino companies and determine a person’s “suitability” to be licensed. The state’s regulations are intended to prevent corruption or criminal activity in the industry.
IAC, which has digital holdings including The Daily Beast and Care.com, has said it plans to use its internet expertise to help MGM Resorts expand its online gambling business.
Write to Katherine Sayre at katherine.sayre@wsj.com
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8