A split in the US gambling world got bigger this week when MGM Resorts International CEO Bill Hornbuckle repeated his view that the growing prediction market field should be handled just like regular sports betting.
Hornbuckle Praises Regulators as Casino–Tech Divide Widens Over Event Trading
Hornbuckle made these comments during a regular meeting with the Nevada Gaming Commission, where he applauded state officials for taking a tough position against companies trying to grow sports-event trading platforms.
Hornbuckle informed the commissioners that the recent guidelines from Nevada regulators provided crucial direction to companies already holding gaming licenses in the state, reported Covers. He emphasized that these new trading products, which some tech-focused operators market as financial instruments, are just sports betting under a different label. In his view, the only logical approach is to make sure they operate under the same regulatory and tax structure that governs sportsbooks in Nevada and other states.
His remarks came after a wild week where FanDuel gave up its Nevada license and DraftKings stopped trying to get one. Both firms have shown they want to launch prediction platforms that let users buy and sell outcomes of sports events and other real-world markers. Their exit from the American Gaming Association highlighted how big the rift has become between old-school casino operators and digital-first companies.
Big Resorts on Edge as State Threatens Crackdown on Event-Contract Trading
Nevada’s gaming regulators have cautioned that taking part in these markets, even outside the state, could put a company’s status at risk. The Board has stressed that offering contracts on sports events fits the definition of betting activity under state law, no matter if the federal Commodity Futures Trading Commission oversees it. This warning matters a lot to companies that run big resort properties, as losing a gaming license would be unthinkable for them.
FanDuel and DraftKings see an opening to reach customers in areas where sports betting remains against the law, as Nevada casinos do not hold them back. FanDuel has already revealed its plans to create a new app in collaboration with CME Group. This app will allow users to bet on results across major sports and financial benchmarks.
The company said it would pull these products from states once sports betting becomes legal there. For big casino companies, the math on risks and rewards looks quite different. MGM, along with rivals like Caesars and PENN, has shown caution as regulators in several states warn against jumping into prediction markets too soon.
Hornbuckle pointed out that casinos must follow orders from the states that give them licenses, adding that the industry has always pushed back against the federal government getting involved in gaming oversight.