MGM CEO Applauds Nevada’s Stand Against Prediction Markets

The CEO of MGM Resorts International, Bill Hornbuckle, expressed gratitude to the Nevada Gaming Commission (NGC) for its decisive actions against prediction markets within the state. He emphasized that these markets should adhere to regulations similar to those governing traditional sports betting.

The NGC has been proactive in regulating prediction markets, issuing a cease-and-desist order to operator Kalshi in March 2023. This was followed by legal victories against both Kalshi and Crypto.com, as the courts denied their requests for temporary injunctions. The commission was also among the first to alert operators entering the prediction markets sector, leading to DraftKings and FanDuel withdrawing their license applications in Nevada. In a related move, both companies resigned from the American Gaming Association due to opposition to their ventures in the predictions market.

In a recent NGC hearing, Hornbuckle thanked the board for its clear stance on predictive gaming. He argued that the platforms operating in this space are effectively sportsbooks under a different name, thus warranting the same regulatory framework, including taxes. “The clarity helps us,” Hornbuckle stated. “Obviously, we have some work to do in some other states, and you’ve probably all followed that story closely.”

Hornbuckle characterized prediction markets as unequivocally related to sports betting, saying, “It is without a doubt sports betting, full stop.” He expressed a commitment to monitor developments in this area closely to ensure that operations align with appropriate regulations and standards.

Previously, Hornbuckle indicated that BetMGM would quickly adapt should prediction markets gain traction. While this sector has not yet reached the scale of sports betting in the United States, both DraftKings and FanDuel have announced plans to launch prediction platforms soon. This shift reflects a broader trend among various operators exploring alternative revenue streams in states where sports betting remains illegal.

As the landscape of gaming continues to evolve, the actions of the Nevada Gaming Commission and the responses from major operators like MGM provide critical insights into the future of betting regulation in the United States. The regulatory clarity offered by the NGC may pave the way for a more structured approach to prediction markets, potentially influencing other states in their governance of this emerging sector.