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Rules and licensingCasars and mgm avoid prediction markets over state license threats
Two major casino operators refuse to enter prediction markets because state regulators threaten their core gaming licenses.
Written by the BettingEdgeHub desk, 2 October 2026
Casino giants Caesars Entertainment and MGM Resorts International decided to stay away from prediction markets. Leaders from both companies spoke at a gambling conference in Las Vegas this week. They explained that entering the event contracts industry creates too many regulatory dangers.
Bill Hornbuckle from MGM stated that his company considered launching a prediction market product. State gaming authorities quickly warned them that such an action might compromise their traditional casino approvals. Tom Reeg from Caesars agreed that the potential revenue cannot justify losing a state gaming permit.
License threats across multiple states
Both businesses operate numerous properties in Nevada and other regions. State regulators in places like New Jersey and Arizona also oppose unregulated yes/no exchanges. Operating in prediction markets could jeopardize existing online sports betting permits and digital casino licenses.
Concerns about weak market rules
The chief executives also criticized the current oversight found in prediction markets. Platforms often allow younger adults aged eighteen to place trades while traditional casinos enforce a strict age limit of twenty one. Executives argued that poor rules and a lack of proper guardrails make these platforms too risky.
Another major issue involves insider trading protections on event contracts. Leaders pointed out that prediction exchanges failed to block company insiders from wagering on corporate buyouts. Traditional sportsbooks and casinos must follow strict compliance rules that prevent this type of conflict.
Bettors should expect major sportsbooks to avoid prediction markets until state regulators provide clear rules.