DraftKings, FanDuel Depart from Nevada Over Prediction Markets
In a statement issued by the state’s gambling regulator, the Nevada Gaming Control Board (NGCB), sportsbook operators DraftKings and Flutter Entertainment, parent company of FanDuel, have surrendered their sports betting licenses, and in the case of DraftKings, all pending sports wagering applications.
The departure from the Nevada sports betting market comes as both operators look to launch sports event contracts, with FanDuel and derivatives market exchange CME Group announcing on Nov. 12 their new predictions product, FanDuel Predicts, expected to launch by December. The app provides sports event contracts for basketball, baseball, football, and hockey, and can be used by users in states where online sports betting is prohibited.
In turn, DraftKings announced in a Q3 business update that it would also be launching DraftKings Predictions in the coming months after acquiring Railbird Technologies in October. Similar to FanDuel, the service would be available in markets where online sports betting is not yet legalized.
Our legal sports betting states tracker will note which markets those are.
Last month, the NGCB also issued a formal notice to operators, warning that any licensee or affiliate that shares an interest in launching sports event contracts in Nevada or nationwide could face disciplinary action against its gaming license in Nevada.
In its updated notice, the NCGB said, “It has been made clear to the board that Flutter Entertainment/FanDuel and DraftKings intend to engage in unlawful activities related to sports event contracts. This conduct is incompatible with their ability to participate in Nevada’s gaming industry.”
Nevada has been clear on its stance against prediction markets and is one of a few states that have issued cease-and-desist orders against platforms like Kalshi in recent months.
Americans in favor of prediction markets
Despite increasing regulatory scrutiny from state gaming regulators, a poll authored by Kalshi claims that the majority of US citizens are actually in favor of prediction market apps.
The survey, conducted by Axis Research, polled 1,219 voters nationwide and collected data across all demographics, including gender, age, ethnicity, and political affiliation, from Sept. 18 to 23.
The results showed that 89% of voters agreed with the statement “Even if I don’t participate in these types of markets, I believe all Americans should have access and the option to decide for themselves.” In comparison, 54% of voters agreed strongly with it.
Further results revealed bipartisan support for the freedom to allow Americans to invest in specific outcomes, such as elections, gold, or agricultural futures, with 70% of respondents agreeing.
When asked whether Federal Government regulators, such as the Commodity Futures Trading Commission, should regulate prediction markets, an outpouring of support could also be seen.
“Voters nearly universally view the purchase of stocks, mutual funds and participation in commodities markets as a ‘financial investment’ (89%) over viewing these activities as ‘gambling’ (11%). Because of this belief, voters overwhelmingly say ‘Federal Government Regulators’ should regulate these activities (79%) rather than ‘State Gaming Commissions’ (21%),” the survey read.
