DraftKings’ Claim That It Operates in All States Raises Eyebrows

American gaming and betting giant DraftKings advertises that it operates in all 50 states, despite regulatory trouble in Nevada. As it turns out, things seem to be a bit more nuanced. DraftKings Does Not Operate Traditional Sports Betting in All States The Las Vegas Review-Journal shed some light on the DraftKings situation, noting that the sports betting powerhouse continues to advertise that it operates in all 50 states. However, the sports betting company recently had to withdraw its sports betting licenses in Nevada amid prediction markets-related trouble. For reference, the 50-state claim was made in new Little League World Series ads that aired this weekend. While DraftKings doesn’t have a sportsbook or online betting presence in Nevada, the company noted that it operates DraftKings Predictions in Nevada and 47 other states, including Hawaii and Utah. For reference, Hawaii and Utah prohibit all kinds of gaming and betting. However, DraftKings Predictions, like other prediction markets platforms, does not consider itself to be a sports betting operator. Similar to Kalshi, DraftKings Predictions is an event contracts platform where players can buy yes-no shares in the outcomes of various events, including sports. The legality of such products and whether they are considered sports betting or not has been a major point of contention for quite some time now. Nevada’s Gaming Control Board has been fighting a prolonged legal battle with Kalshi for months, insisting that such products are considered gambling in Nevada, despite the prediction market’s claim to the contrary. In fact, the 9th Circuit Court of Appeals affirmed that Nevada gaming regulators can oversee the platform, even though prediction markets fall under the CFTC’s purview. In any case, this decision seemed to be at odds with an earlier verdict in New Jersey, according to which the state has no control over Kalshi. New Jersey, however, could still try to appeal the decision. Experts believe that the matter is bound to end up at the US Supreme Court. Officials Warned the Company Against Trying to Circumvent the Rules While the Las Vegas Review-Journal reached out to DraftKings for comment on its recent ad, the operator has yet to respond to the request. As mentioned, DraftKings recently withdrew its sports betting applications in the state. However, Nevada Gaming Control Board officials pointed out that DraftKings does not intend to leave the state untapped and will instead target it with “unlawful activities related to sports event contracts.” Officials noted that this conduct makes DraftKings incompatible with Nevada’s regulated gaming industry. Because of that, the board warned DraftKings that its prediction markets-related activity is unlawful and could lead to legal trouble.