MGM and Caesars rule out prediction markets over licence risk
The casino giants cite warnings from Nevada regulators that offering event contracts could jeopardize their gaming licences.
LAS VEGAS — The chief executives of MGM Resorts International and Caesars Entertainment have said their companies will not enter the prediction market business, citing warnings that it could jeopardize their state gaming licences.
Speaking at the Global Gaming Expo (G2E) in Las Vegas this week, MGM CEO Bill Hornbuckle and Caesars CEO Tom Reeg said the regulatory risk is too great for their core casino operations.
"There was nowhere in their rules that said I couldn’t place a bet," Reeg said, citing a contract on a major exchange about whether Caesars would be acquired this year.
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Hornbuckle said MGM considered entering the sector in early 2025, likely through its BetMGM joint venture, but abandoned the idea after Nevada regulators cautioned that offering sports event contracts could jeopardise the company’s gaming licences.
Reeg confirmed Caesars would also avoid prediction markets, noting its presence in multiple states could expose its casino business to regulatory consequences.
The executives said regulators in several states, including Nevada and New Jersey, have warned that entering the event contract space could put operators’ traditional gaming licences at risk.
Both companies have significant exposure, operating 17 integrated resorts on the Las Vegas Strip together.
They also combine to operate four of the nine casino hotels on the Atlantic City Boardwalk.
A move into prediction markets could also threaten their lucrative iGaming and sports betting licences.
BetMGM and Caesars rank as the third- and fifth-largest U.S. online sportsbook operators by gross gaming revenue, respectively.
In Arizona, at least one operator previously lost a sports wagering licence following an entry into event contract trading.
Both CEOs questioned the rules and guardrails around prediction market contracts.
Hornbuckle raised concerns about age requirements, asking why some platforms allow participation from age 18 when most U.S. states require customers to be over 21 for casino gambling and sports betting.
Reeg compared the development with the early days of daily fantasy sports, noting that sector was able to expand before states established clearer rules.
The American Gaming Association has also criticized prediction markets, with its president saying the platforms compete with licensed operators while skirting some state taxes and responsible gaming obligations.
The dispute has sparked court fights, with New Jersey among states leading legal challenges to the exchanges.
Prediction market platforms argue federal commodities law regulates their event contracts, not state gambling rules.
Despite the growing market volume, with one platform handling more than $6 billion in a recent weekend, the two casino giants see no value in entering a space that could threaten their established businesses.