Caesars, MGM Not Interested in Joining Prediction Markets

Casino bigwigs aren’t convinced that prediction markets are in the best interest of their companies. 

MGM Resorts and Caesars Entertainment, both of which operate a plethora of casinos and self-branded sportsbooks, do not plan on contributing to the rise of prediction markets. CEOs of both companies this week made it clear that they would keep the bubbling industry at arm’s reach, continuing with their typical gaming offerings.

That’s despite competitors such as FanDuel and DraftKings jumping headfirst into the prediction space, which is already worth tens of billions of dollars.

Caesars and MGM out on prediction markets

MGM CEO Bill Hornbuckle and Caesars CEO Tom Reeg both poured cold water on the idea that their companies would be interested in joining the prediction market wave.

Prediction markets, which allow users to buy and sell contracts, took off in popularity around the time of the 2024 U.S. Presidential Election. The release of sports event contracts pushed them further into mainstream audiences by offering products which, although operators maintain do not represent a form of gambling, rivaled odds provided by sports betting platforms — oftentimes presenting better deals for customers.

State gaming officials across the country have taken exception to the spread of prediction markets. Many classify them as illegal gaming operators and have initiated a variety of responses, including seeking injunctions and issuing cease-and-desist orders.

Nevada — home to America’s gaming capital of Las Vegas — is one of those states. The Nevada Gaming Control Board (NGCB) was granted the right by the 9th U.S. Circuit Court of Appeals to enforce state gaming laws and block prediction markets from offering event contracts. 

With that in mind, the casino giants are keeping their distance.

“‘If you stretch out and do this, it’s going to impact your licensing,” Hornbuckle said during a panel with Wynn Resorts CEO Craig Billings at the Global Gaming Expo in Las Vegas that Nevada regulators warned him. “We decided pretty quickly after that [not to pursue prediction markets].”

Seen this before?

Although MGM and Caesars do not have any current interest in prediction markets, that was not always the case. MGM considered expansion in early 2025 but pivoted after recognizing the risks it posed to its casino and sports betting businesses.

Reeg previously said that Caesars would be open to entering prediction markets. However, that would only happen if it wouldn’t jeopardize its gaming licenses, which help it operate eight locations on the Vegas Strip and throughout the country. 

The MGCB also told operators that offering prediction markets — specifically, sports event contracts — in states outside of Nevada could still threaten their status as casino license-holders inside state lines.

“We’ve lived through this before with [daily fantasy sports],” Reeg said. “Where DFS operated in a gray market, and PASPA was repealed and sports betting was legalized, and those that operated that business had a head start. And that would be the same, if places that do not have regulated gaming moved to regulated gaming and prediction markets are no more. Those that operated that in this current situation would benefit.

Prediction markets have proven to be controversial for a variety of reasons. One of which is allowing individuals 18 or older to use their products instead of setting a minimum age of 21, which Hornbuckle criticized.

“The age is 18. No taxes, no jobs, and the cavalier approach by these guys [hurts] the industry, he said. “If they want to play by the rules and come to Nevada, god bless ’em.”

Reeg also said that he could’ve used his inside knowledge to purchase a contract predicting if Caesars would be sold in 2026.

“There was nowhere in their rules that said I couldn’t place a bet,” he said.

These comments come as opposition continues to mount, and legal losses begin to pile up for prediction operators.