Nevada Blocks Two Major SB Operators Over Prediction Markets

|
Nevada Blocks Two Major SB Operators Over Prediction Markets

Nevada regulators have moved decisively to address rising concerns around unregulated prediction markets. Their action has forced DraftKings and FanDuel out of the state’s regulated sportsbook market. 

The decision marks a significant moment for US online sportsbooks and sets a clear line for licensed operators.

Nevada Gaming Control Board Puts the Brakes

The Nevada Gaming Control Board (NGCB) reviewed the operators’ new prediction market products. Officials concluded that these offerings fell outside Nevada’s strict regulatory framework. As a result, the Board declined ongoing approval for both companies within the state’s regulated sportsbooks market.

Nevada Gaming Control Board Chairman Mike Dreitzer stated in an industry notice Wednesday, that “Flutter Entertainment/FanDuel and DraftKings intend to engage in unlawful activities related to sports event contracts.”

FanDuel issued a public statement in response to the decision. The company said, “FanDuel has built our business on operating within clear regulatory frameworks and maintaining strong partnerships with state gaming regulators across the 24-plus jurisdictions where we hold licenses,” and reaffirmed its commitment to compliance.

The operator further emphasized the value of regulator partnerships. “We value those relationships and the collaborative approach to state gambling regulation,” the statement said. 

However, the NGCB held firm with their sports betting laws: 

“While we are enthusiastic about expanding FanDuel’s presence in Nevada, our views of the current opportunity for prediction markets outside of regulated states are unfortunately in direct opposition to Nevada’s priorities for its licensed operators. As a result, we are making the difficult decision to voluntarily surrender our license. We look forward to resuming our Nevada efforts in the future as circumstances allow.”

DraftKings faced similar scrutiny. The Board expressed clear concerns about prediction markets operating outside licensed betting structures. 

Regulators argued that these markets resembled unregulated wagering formats. They stressed that such activities conflicted with Nevada’s long-standing rules for sportsbook licensees.

Industry analysts noted that the decision signals strong protection of Nevada’s regulated ecosystem. They also argued that the move could influence future decisions in other states. 

However, the immediate impact falls squarely on Nevada’s operators and customers. The removal of two major brands leaves a gap in market competition.

Market Projections for the Silver State’s Online Sportsbook Landscape

Analysts project continued stability for Nevada’s sportsbook sector. They expect local operators to maintain strong revenue levels. 

However, they also note rising pressure from expanding US online sportsbooks in competitive states. Still, experts believe the state’s market will retain its unique position due to strong tourism and retail betting demand.