MGM, Caesars Say No to Prediction Markets

MGM Resorts and Caesars Entertainment have both ruled out entering the prediction markets business, with the chief executives of both Las Vegas Strip operators warning this week that the sector's licensing and regulatory uncertainty isn't worth the risk to their existing gaming licenses.

Speaking at the Global Gaming Expo (G2E) in Las Vegas, MGM Resorts CEO Bill Hornbuckle and Caesars Entertainment CEO Tom Reeg discussed the issue during a CEO panel moderated by CNBC's Contessa Brewer, alongside Wynn Resorts CEO Craig Billings.

Hornbuckle said MGM had considered entering prediction markets in early 2025, likely through its BetMGM joint venture, but backed away after Nevada regulators warned the move could jeopardize its gaming licenses.

Gaming Industry Trust Fading

Hornbuckle was critical of how prediction markets operate outside state gaming regulation. 

"It is obscene what is happening in places such as Utah where people can effectively bypass state law," he said. "It erodes trust in the gaming industry."

He also questioned why some prediction platforms allow users as young as 18 to trade event contracts, when most US jurisdictions set a minimum gambling age of 21 for casino and sports betting.

Comparison To DFS

Reeg raised a similar concern on Caesars' side, comparing the early, unregulated days of daily fantasy sports to the period before the Supreme Court's 2018 PASPA ruling, which opened the door to legal sports betting nationwide.

"What I worry about is that something awful is going to happen in this interim period, because of the lack of regulation and oversight, that's going to tar all of us, whether we're operating in the regulated markets or in predictions," Reeg said.

Reeg also noted that a prediction market had listed a contract on whether Caesars itself would be acquired in 2026, and that nothing in the platform's rules would have stopped him from trading on that outcome despite his insider position as CEO.

Prediction Markets An 'Existential Threat'

The panel followed a keynote address from American Gaming Association (AGA) President and CEO Bill Miller, who told G2E attendees that prediction markets represent an "existential threat" to the regulated gaming industry.

Miller argued that prediction market operators use a regulatory "back door" to sidestep state laws, gaming taxes, and tribal sovereignty, contrasting that with an industry he said supports 1.8 million jobs and pays $53 billion annually in taxes that fund schools and public services.

Both MGM and Caesars operate regulated sportsbooks through BetMGM and Caesars Sportsbook, respectively, putting them in direct competition with prediction market platforms like Kalshi and Polymarket, which argue they operate as federally regulated financial exchanges rather than state-licensed gambling products.