With the top U.S. sports book BetMGM poised to go EBITDA-positive by year’s end, there’s hardly a better time to sit down with the MGM Resorts International-Entain joint-venture to discuss the all-important subject of compliance.
Branded as “The King of Sportsbooks”, BetMGM was founded in 2018–the year of the great PASPA repeal–and since then has grown to capture some 22 percent of America’s iGaming market and near-10 percent of the USA’s online sports betting market.
This week, I had the great privilege to interview BetMGM’s Chief Compliance Officer, Rhea Loney, in an insightful and fast-paced tête-à-tête on what it takes to thrive in one of the world’s most competitive gambling landscapes.
Rhea, a former Vice President of Compliance at Penn Interactive, who spent a decade as the Assistant Attorney General of the Louisiana Division of Gaming, joined BetMGM in 2022.
As we explored the fine balance between innovation and compliance, and the complexities of navigating state-by-state regulations in the U.S., I began by asking her:
BetMGM is one of the biggest U.S. native iGaming companies. How have you succeeded and thrived in such a competitive market?
“BetMGM’s success is rooted in several factors.
“Our strong branding, backed by MGM as one of our joint venture parents, and the robust technology from Entain have significantly contributed. More importantly, our company culture fosters a winning mindset.
“At the core of this success is compliance — ensuring our technology is approved, meeting regulatory requirements, and securing licenses.
“In such a highly regulated environment, compliance is key to thriving.”
How complex is navigating state-by-state regulations in the U.S.?
“It’s incredibly complex. Many companies, especially from the UK, initially underestimated this, thinking of the U.S. as a single jurisdiction.
“In reality, we operate in 30 different jurisdictions, including Canada, each with unique regulations.
“Licenses aren’t transferable, and application requirements vary greatly. Compliance becomes challenging when managing operations like customer service and risk teams under 30 different rule sets.
“All departments must know the differing rules and regulations and implement what’s required.
“Handling issues like confiscated funds or account dormancy requires tailored approaches per jurisdiction, which adds to the complexity.
“We all want to be compliant, but it’s challenging to meet all the requirements, guide teams and then monitor and adapt as required. In reality, compliance must always be a part of every conversation.”
What are your thoughts on the Safe Bet Act and the idea that minimum federal regulatory standards are needed?
“Historically, gambling has been regulated at the state level. While we’re proactive in player protection—often exceeding regulatory requirements—federal oversight could complicate the balance between state and federal rights.
“We fund problem gambling initiatives because it’s important, not because it’s mandated. Programs like Kindbridge Behavioral Health offer free counselling in many states, which we provide voluntarily.
“While federal standards might have benefits, I believe states should retain regulatory control.”
“Gambling has always been a state’s rights issue, much like horse racing. While it complicates compliance, it allows regulations to reflect local values and conditions.
“We’re more than happy to work with regulators to ensure we’re meeting high standards.”
How do operators balance innovation with compliance and responsible gambling?
“Innovation isn’t inherently riskier. We’re developing new technologies focused on player protection, like Kindbridge and GameSense.
“Having compliance involved early in the development process ensures new products are both innovative and safe.
“It’s about collaboration—compliance doesn’t stifle creativity; it guides it responsibly. But there are times when we intervene and others where we allow the creative juices to flow.”
Does there need to be more responsible gambling policies in the U.S.?
“We’ve evolved significantly from the early “check-the-box” approach. Responsible Gambling is now multifaceted and includes education, support services, and public awareness campaigns.
“When you look at the stats, helpline calls are increasing, but that’s because when gambling was illegal, people weren’t calling.
“While there’s always room for improvement, the industry has made substantial progress.”
How does BetMGM approach using brand ambassadors, considering concerns about advertising and youth exposure?
“We adhere to the AGA’s Sports Wagering Marketing Code, ensuring ambassadors don’t appeal to minors.
“Often using ambassadors is frowned upon, but it’s a powerful communication method.
“For example, we’re leveraging ambassadors like Connor McDavid for responsible gambling campaigns, promoting healthy gambling habits in a positive, non-stigmatizing way”.
Why do you think iGaming progression has stalled in the U.S.?
“Several factors play a role, including the focus on sports betting launches and competing legislative priorities, be it COVID or wildfires – there’s other stuff going on.
“Misinformation about player protection in online gaming is also a contributing factor. However, in states like New Jersey and Michigan, we and regulators have already demonstrated that robust player protections and revenue generation can coexist.
“But there are also competing interests and industries, parallel industries, that don’t want iGaming to exist. This competition is pressing very hard against the expansion of the online casino industry.
“You’ve got the lottery, pull tabs, social gaming, brick-and-mortar casinos, video game terminals, and horse racing — all these parallel industries, and everybody wants to protect their slice of the market.”
Which states are BetMGM focusing on?
“Missouri is hot and heavy right now, and we’re hopeful about Alberta [in Canada] — they’re on the cusp of legalising.
“Other potential markets [for iGaming regulation] include Maryland, New York, Illinois, and Colorado. It’s always a dynamic landscape, and this year’s legislative sessions are just getting in full swing.
“It’s going to be an interesting round, that’s for sure.”
Editor’s Note:
Many operators have learned the hard way that the U.S. gambling market is one of the most challenging to crack from both a business and compliance perspective.
For multi-jurisdictional operators like BetMGM, balancing intricate regulations means making compliance a part of every conversation and ultimately ingraining it into the workplace culture.
While Rhea thinks U.S. jurisdictions have made significant progress in responsible gambling, she maintains there is always more to be done and innovative ways to do it.
For example, rather than using brand ambassadors solely as marketing tools, BetMGM is taking an alternative approach and leveraging these partnerships to destigmatise problem gambling and promote responsible play.
Lastly, which states does Rhea think will legalise next?
Maryland, New York, Illinois and Colorado are on Rhea’s hotlist of the next states poised to adopt full 360 iGaming.
Watch this space!
