Barry Diller’s Gambling License Application Delayed Due to Insider Trading Investigation – Deadline

The Nevada Gaming Commission today referred the gaming license applications of IAC Chairman Barry Diller and CEO Joey Levin to the Nevada Gaming Control Board for “further investigation and investigation.”

IAC owns a 14% stake in MGM Resorts, following an initial $1 billion investment in August 2020. Diller and Levin serve on the board.

The Nevada gaming regulator’s decision follows federal prosecutors and the SEC investigating Diller, Alexander von Furstenberg and David Geffen who allegedly made a $60 million unrealized profit on an Activision Blizzard options trade days before. that the video game label is bought by Microsoft. January 18.

A representative for IAC in an email response to Deadline said, “Mr. Diller’s license application was not denied; the case was simply delayed. We do not foresee any problems with Mr. Diller’s candidacy or IAC‘s.

The decision to delay Diller’s license application was made by Nevada Gaming Commission Chairman Jennifer Togliatti in a public meeting. which was also streamed live on YouTube. Nominations will be deferred to a board meeting in April.

Prominent casino shareholders and officers must be licensed to operate in the Nevada gambling industry. The Nevada Gaming Control Board is investigating the backgrounds of these individuals. The whole process is aimed at preventing corruption and criminal activities in the state gambling circle. IAC’s involvement with MGM Resorts is to help propel the casino into the online gambling industry.

Diller, Geffen and von Furstenberg bought options to acquire shares of Activision at $40 each, as shares of the video game developer and publisher were trading at around $63. Their profit was reaped when the Activation stock price was around $80 according to the the wall street journalreport.

At the time of the March 8 report, Diller confirmed he was under investigation by the DOJ and said WSJ that none of the three men had any private information about the impending merger. “It was just a lucky bet,” he said WSJ. “We haven’t acted on any information of any kind from anyone. It’s one of those coincidences.”

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