MGM and Caesars Say No to Prediction Markets over Licensing Risks

MGM Resorts International and Caesars Entertainment have said they will not enter the prediction market space, due to potential risks to their gaming licenses. Caesars and MGM Avoid Prediction Markets Amid Regulatory Concerns The CEOs of the companies debated the issue at the Global Gaming Expo (G2E) in Las Vegas. Their comments come as prediction markets continue to grow across the US and run into headwinds from state regulators and traditional gaming operators. MGM CEO Bill Hornbuckle said the company had been thinking about entering prediction markets in early 2025, possibly through BetMGM. However, MGM abandoned the idea after Nevada regulators cautioned that offering event contracts could jeopardize the company’s gaming licenses, reported the Northeast Times. Licensing issues are particularly relevant as the company also has major projects and operations outside the US. Caesars CEO Tom Reeg also said his company would not enter prediction markets. Caesars has casinos and sportsbooks in a number of states, so regulatory action in one region could have ripple effects for its business. The executives questioned the legal framework for prediction contracts related to sports. Most operators of prediction markets describe their products as financial contracts regulated by federal commodities law, not gambling products subject to state gaming rules. Traditional gaming companies deny that distinction. Contracts based on sporting events are like bets, they say, and should be subject to the same kinds of rules as licensed sportsbooks. Casino CEOs Question Prediction Markets’ Rules and Age Limits Reeg further worried about what kind of markets prediction platforms can offer. He pointed to a contract related to a possible purchase of Caesars in 2026. He noted that he did not think the rules on the platform prevented him from trading on the outcome. The Caesars chief likened the situation to the early days of daily fantasy sports. He said prediction markets could get a leg up by functioning before states set clearer rules governing their activities. Another area of concern is age requirements. Hornbuckle asked why some prediction platforms allow customers as young as 18 while casino gambling and sports betting require customers to be at least 21 in most US jurisdictions. The American Gaming Association (AGA) has also stepped up criticism of prediction markets. AGA President and CEO Bill Miller told G2E the platforms compete with licensed operators while skirting some state taxes, licensing requirements, and responsible gaming obligations. The dispute has already sparked court fights throughout the US. New Jersey is one of the states suing over sports prediction contracts, and Arizona has taken licensing action against a company linked to prediction markets. With the market still developing, Caesars and MGM do not see much value in entering the space if it could threaten their established businesses. The position also underscores the larger war between prediction platforms and state-regulated gaming. Operators such as Kalshi and Polymarket say federal oversight allows them to offer event contracts nationally, while gaming interests say gambling is the domain of individual states.