Nevada Gambling Regulators Approve Barry Diller to Work in Casino Business

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 [email protected]

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 [email protected]