MGM & Caesars shun prediction markets to protect casino licences

Caesars boss Tom Reeg says he could have traded a Kalshi contract on whether his own company would be sold.

The hit

MGM Resorts & Caesars Entertainment say they will not follow DraftKings & FanDuel into prediction markets, warning the move could threaten their Nevada casino licences. MGM boss Bill Hornbuckle says Nevada regulators told him entering the market would hit his licensing, while Caesars boss Tom Reeg raised similar concerns at a Global Gaming Expo panel in Las Vegas, according to Legal Sports Report.

Why it matters

Prediction markets let customers aged 18 trade sports contracts without state gaming tax or the oversight sportsbooks face, Hornbuckle says. Prediction market operators could gain a head start if event contracts later move into regulated gambling, Reeg says, comparing it to daily fantasy sports before PASPA was repealed.

The record

MGM Strip casinos	9, including Bellagio, Aria & MGM Grand
Caesars Strip casinos	8, including Caesars Palace & Paris Las Vegas
Kalshi forced out	Forced out in August after the Ninth Circuit found federal commodities law does not block state gambling enforcement
Reeg’s disclosure	Kalshi listed a contract on whether Caesars would be sold in 2026; Reeg says its rules did not stop him trading it

What happens next

Watch whether Caesars moves if sports event contracts are folded into regulated gambling, & whether the casino, tribal gaming & labour campaign against prediction markets gains traction with Nevada regulators.

Sources: MGM, Caesars Not Risking Casino Licenses For Prediction Markets

18+. Betting involves risk. If gambling is a problem for you or someone close to you, help is available.