BetMGM lowered its revenue forecast to $2.9bn-$3.1bn and said it expects adjusted EBITDA at the low end of its previously stated $300m-$350m range. Chief executive Adam Greenblatt cited higher customer acquisition costs and criticised prediction-market platforms, which he described as new sports betting companies.
BetMGM’s lower forecast and higher acquisition costs signal pressure on expected performance and operating economics.
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DraftKings is promoting its DraftKings Predictions platform in California and pursuing expansion in Georgia, Texas and Florida, according to the report. The article says prediction-market operators argue their products fall under Commodity Futures Trading Commission regulation rather than state gambling laws, a position disputed by some state regulators. It also reports that the debate has divided the gambling industry.
US casino operators are investing in dining, concerts and other attractions to draw Gen Z visitors, citing Bloomberg News. Penn Entertainment opened its $360m Hollywood Casino and Hotel Aurora near Chicago in June, replacing a riverboat casino.
The Commodity Futures Trading Commission ordered designated contract markets to end US geofencing that conflicts with impartial-access requirements within 30 days, or explain why they cannot comply. The order puts exchanges offering sports-event contracts at odds with court orders restricting Kalshi in several states and on tribal lands. Chairman Michael S. Selig said derivatives markets must operate nationally.
Within 30 days, designated contract markets must end geofencing restrictions in the U.S. that violate “impartial access requirements,” or give reasons they cannot comply, the CFTC has ordered. CFTC Chairman Michael S. Selig said in a statement that derivatives markets "must operate on a uniform basis at a national scale" to serve the purposes of the Commodity Exchange Act.
ESMA’s trends, risks and vulnerabilities report, published on 10 September, says users in the EU can access prediction-market services through VPNs despite geographic restrictions. The report says these contracts may fall under financial, cryptoasset or national gambling rules, depending on their terms, and that major platforms generally lack the required EU authorisation.
The European Securities and Markets Authority (ESMA) has said that virtual private networks allow users to circumvent the geographic restrictions of prediction-market platforms Polymarket and Kalshi, according to a chapter of its latest trends, risks and vulnerabilities report. The report was published on 10 September. ESMA said that offering these event contracts in the EU generally requires an EU authorisation that the largest prediction-market platforms do not currently hold.
Donald Trump expressed support for US leadership in prediction markets during White House remarks on 19 August. State gambling regulators argue that sports contracts constitute betting requiring state licences, while platforms operate under CFTC oversight. The report cited Kennedy Forum estimates that sports account for 75%–90% of Kalshi’s trading volume and roughly half of Polymarket’s activity.