MGM Resorts International CEO Bill Hornbuckle Thursday applauded Nevada gaming regulators for standing up against sports betting prediction markets.
Hornbuckle appeared at the Nevada Gaming Commission for a routine licensing matter and addressed the issue unprompted by Commission members. Opponents of prediction markets argue it’s illegal under state and federal laws and should be halted.
“I do want to thank the (Nevada Gaming) Board for its clarity around predictive markets,” Hornbuckle said. “The clarity helps us. Obviously, we have some work to do in some other states and you’ve all followed that story closely. It’s sports betting. Full stop. We’re keeping an eye on everything that’s active and ultimately we’ll see what we can do to make sure it comes in line with proper regulation and proper tax.”
Last week, FanDuel abandoned its Nevada license, while DraftKings dropped efforts to pursue one in the state. Both prepare to enter the predictions market by joining Kalshi and others, despite being regulated in states throughout the country. The companies dropped their membership in the American Gaming Association, which has rallied against prediction markets.
The Nevada Gaming Control Board has warned operators to abstain from prediction markets or risk their standing in the state, even if they participated in prediction markets outside of Nevada.
Upon its withdrawal, FanDuel announced a plan to launch its own sports betting prediction market app. The online gaming company has partnered with CME Group, the world’s leading derivatives marketplace, to launch FanDuel Prediction that will expand access to financial markets in the United States in December. The app will provide access to sports event contracts across baseball, basketball, football, and hockey. It will also offer event contracts on benchmarks such as the S&P 500 and Nasdaq 100, prices of oil and gas, gold, cryptocurrencies, and key economic indicators, such as GDP and CPI.
In states where online sports betting is not yet legal, customers who aren’t on tribal lands will be able to trade contracts on the outcome of sporting events, the company announced. As new states legalize online sports betting, FanDuel will cease offering sports event contracts in those states.
FanDuel had a license as a provider of information services and has worked with Boyd Gaming at its Fremont Hotel & Casino in downtown Las Vegas. DraftKings has an office in Las Vegas, but doesn’t operate in the state in any fashion.
“It has been made clear to the Board that Flutter Entertainment/FanDuel and DraftKings intend to engage in unlawful activities related to sports event contracts,” said Board Chair Mike Dreitzer in making the announcement. “This conduct is incompatible with their ability to participate in Nevada’s gaming industry.”
The Board considers offering sports event contracts to constitute wagering activity under state law even though operators like Kalshi and others who are locked in legal battle with the state even though they claim they are regulated under the federal Commodity Futures Trading Commission.