Nevada and Louisiana regulators call for stronger industry response to prediction markets
Officials say prediction platforms are operating outside state gambling frameworks and could weaken consumer protection standards.
US.- The chair of the Nevada Gaming Control Board has called on the gambling industry to take a firmer position on the expansion of sports event prediction markets, arguing that the products are circumventing state-level gaming regulations. Speaking during the International Conference on Gambling and Risk Taking at the Bellagio in Las Vegas, Mike Dreitzer said the industry must defend the regulatory standards developed to protect consumers and ensure market integrity.
He said regulators are not opposed to innovation but argued that new products should be subject to the same oversight mechanisms and consumer safeguards required of licensed gambling operators. He said platforms operating under federal commodities regulations were avoiding state gaming laws despite offering products that resemble sports betting, pointing to recent enforcement efforts by state regulators, including cease-and-desist orders issued against certain prediction market operators.
Concerns over consumer protection and oversight
Dreitzer’s comments were supported by Louisiana Gaming Control Board Chairman Christopher Hebert, who said the issue centres on fairness and public protection. Herbert argued that regulators have a responsibility to ensure that consumers receive the same protections regardless of the platform they use.
Both officials suggested that the industry is approaching a critical moment as prediction products continue to expand across the United States. They warned that, without regulatory action, existing oversight gaps could widen further, creating challenges related to cybersecurity, responsible gambling measures and age-verification requirements.
