Caesars Entertainment CEO Tom Reeg and MGM Resorts International CEO Bill Hornbuckle said at the Global Gaming Expo in Las Vegas that their companies will not enter the prediction market business. Both cited concerns that event contracts could jeopardize gaming licenses held across multiple states, while Hornbuckle said Nevada regulators warned MGM directly that such a move could affect its state licensing.
Caesars Entertainment and MGM Resorts International will not enter the prediction market business, their chief executives said at the Global Gaming Expo in Las Vegas, as reported by Northeast Times citing Casino.org.
Caesars CEO Tom Reeg and MGM CEO Bill Hornbuckle both said the move could endanger the gaming licenses their companies hold in several states. Together, the two companies operate four of the nine casino hotels on the Atlantic City Boardwalk.
Nevada Regulators Warned MGM Directly
Hornbuckle said MGM considered entering prediction markets in early 2025, potentially through its BetMGM joint venture, according to Casino.org. The company dropped the idea after concluding it could harm its core businesses.
Hornbuckle also said the Nevada Gaming Control Board told MGM that such a move could affect its state licensing. Casino.org financial reporter Todd Shriber wrote that regulators in some states, Nevada among them, have warned casino and sportsbook operators that event contracts could put their traditional licenses in jeopardy.
Other States and License Types Face Exposure
Caesars and MGM have extensive casino and sports betting operations across multiple states, making state-issued gaming licenses a key consideration when deciding whether to enter prediction markets.
New Jersey is among the states pursuing legal challenges involving prediction markets. Online licenses could face similar regulatory concerns, with BetMGM and Caesars among the largest U.S. online sportsbook operators by gross gaming revenue.
Arizona regulators have also warned licensed sportsbook operators that involvement with prediction markets could put their state gaming licenses at risk.
Executives Question Age Limits and Contract Rules
Both executives said the prediction market industry needs stronger guardrails. Hornbuckle questioned why these platforms accept traders as young as 18 when the minimum age for sports betting or casino wagering is 21 in many regulated markets.
Reeg said a major exchange listed an event contract on whether Caesars would be acquired this year. He said he likely could have purchased the contract himself because the exchange’s rules did not bar him from doing so.
Caesars Sale Moves Forward
Caesars has agreed to be acquired by Fertitta Entertainment. Gaming America reported in its Sept. 25 roundup that shareholders approved the deal at a special meeting in Reno, with about 93% of the shares represented voting in favor.
Shareholders will receive $31 per share. Fertitta Entertainment will also assume roughly $11.9 billion in Caesars’ debt, bringing the total transaction value to approximately $17.6 billion. The Federal Trade Commission review, other regulatory approvals and additional closing conditions remain pending.
Prediction Market Volumes Continue to Climb
The two operators are staying out of prediction markets even as trading volumes surge. Gaming America cited TickerTracker data showing Kalshi handled more than $6 billion in combined volume over a recent weekend, up from about $4.89 billion the weekend before.
Across the platforms TickerTracker tracks, weekend volume reached $7.64 billion, up 20% from $6.34 billion a week earlier.
