MGM and Caesars rule out entering prediction market space
The companies’ CEOs cite licence risks and a regulatory gap around event contracts.
U.S.- MGM Resorts International and Caesars Entertainment have ruled out entering the prediction market sector, citing concerns that offering event contracts could put their gaming licences at risk. Discussing the issue at the Global Gaming Expo (G2E) in Las Vegas, the companies’ CEOs noted that prediction markets face opposition from regulators in several states.
MGM CEO Bill Hornbuckle said the company considered entering the sector in early 2025, potentially through BetMGM but abandoned the idea after Nevada regulators cautioned that offering sports event contracts could jeopardise the company’s gaming licences.
Caesars CEO Tom Reeg confirmed that his company would also also avoid prediction markets, noting that its presence in multiple states could expose its casino business to regulatory consequences.
The executives also questioned the rules around prediction market contracts. Reeg cited a contract concerning a possible acquisition of Caesars and said he did not believe the existing rules prevented him from trading on the market. He compared the development with the early days of daily fantasy sports, noting that the sector was able to expand before states established clearer rules governing its activities.
Age requirements were a concern raised by Hornbuckle. He questioned why some prediction platforms allow customers to participate from 18, while most US states require customers to be over 21 to partake in casino gambling and sports betting.
