MGM and Caesars Decline Prediction Market Entry Citing Direct Threat to Nevada Casino Licenses

MGM Resorts and Caesars Entertainment have decided against entering prediction markets. Executives from both companies cited explicit warnings that doing so would jeopardize their core casino licenses and larger operations. The statements came Tuesday during a panel at the Global Gaming Expo in Las Vegas alongside Wynn Resorts leadership and reflect a clear divide from online sportsbooks already active in the space.

Nevada Regulators’ Licensing Warnings

MGM considered prediction markets after the sector expanded into sports in early 2025 but abandoned the idea after direct feedback from state officials. Nevada regulators “have absolutely said to us, ‘If you stretch out and do this, it’s going to impact your licensing,’ and we decided pretty quickly after that” not to enter the prediction market business, MGM CEO Bill Hornbuckle said.

The Nevada Gaming Control Board has warned licensees that offering sports event contracts in other states could affect suitability determinations. Kalshi was forced out in August after the Ninth Circuit found federal commodities law does not prevent states from enforcing gambling laws against prediction markets. MGM operates nine casino resorts on the Las Vegas Strip.

Oversight Gaps and First-Mover Risks

Caesars CEO Tom Reeg said the company has explored prediction markets and stands ready to participate, but only if licenses remain secure. Reeg acknowledged potential first-mover advantage for current operators if sports event contracts later shift into regulated gambling frameworks.

“We’ve lived through this before with [daily fantasy sports],” Reeg said. “Where DFS operated in a gray market, and PASPA was repealed and sports betting was legalized, and those that operated that business had a head start. And that would be the same, if places that do not have regulated gaming moved to regulated gaming and prediction markets are no more. Those that operated that in this current situation would benefit.”

Hornbuckle criticized prediction markets for permitting customers as young as 18 to trade without state gaming taxes or equivalent oversight, when the legal age to bet in many states is 21. “The age is 18. No taxes, no jobs, and the cavalier approach by these guys [hurts] the industry,” Hornbuckle said. “If they want to play by the rules and come to Nevada, god bless ’em.”

DraftKings, FanDuel and Fanatics launched prediction market products last year and left the American Gaming Association around the same time. The legal landscape remains fractured, with the Sixth and Ninth circuits ruling states can enforce gambling laws while the Third Circuit reached the opposite conclusion in a New Jersey case now headed to the U.S. Supreme Court. According to reporting by Legal Sports Report, traditional casino operators are unwilling to risk established licenses for this line of business.

Reporting: Legal Sports Report

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