The chief executive of MGM Resorts International has publicly endorsed the Nevada Gaming Commission's firm stance against prediction markets, arguing they represent a form of sports betting that requires equivalent regulation and taxation.
Regulatory Action Sets Precedent
Bill Hornbuckle, the CEO of MGM, expressed his gratitude to the Nevada Gaming Commission (NGC) during a recent hearing for its decisive moves against prediction market platforms. He specifically thanked the board for its "clarity around predictive markets and predictive gaming."
The NGC has been a pioneer in challenging these markets. In March, it issued a cease-and-desist order to the operator Kalshi. The regulatory body subsequently secured significant court victories, with both Kalshi and Crypto.com being denied temporary injunctions. Furthermore, the commission was among the first to issue warnings to companies entering this space, leading to DraftKings and FanDuel withdrawing their license applications in Nevada.
Hornbuckle's Firm Stance on Regulation
Hornbuckle left no room for ambiguity regarding his position on prediction markets. He stated unequivocally, "It's fascinating. It is without a doubt sports betting, full stop." He emphasised that the industry must work to ensure these platforms "come in line with proper regulation and proper tax."
This clarity from regulators, Hornbuckle noted, is beneficial for established operators like MGM. He acknowledged that there is still work to be done in other states, indicating this is an ongoing battle for the traditional gambling industry.
Industry Repercussions and Future Moves
The actions in Nevada have had ripple effects across the US gambling sector. The controversy even prompted DraftKings and FanDuel to resign from the American Gaming Association due to opposition to their ventures in predictions.
Despite Hornbuckle's previous admission that BetMGM would be a "fast-follower" if prediction markets gained significant traction, the market has not yet rivalled traditional sports betting in scale. However, the landscape is shifting, with several operators, including the two gambling giants, announcing plans to launch their own prediction platforms. This is seen as a way to explore alternative revenue streams, particularly in American states where conventional sports betting remains illegal.
