Nevada Gaming Control Board chair Mike Dreitzer urged casino industry leaders in Las Vegas to oppose sports event prediction markets, saying they bypass state oversight. Louisiana Gaming Control Board chair Christopher Hebert said he agreed, citing the need to protect the public and compliant operators.
The regulators' position could affect how operators and prediction-market firms approach state oversight.
The day’s most important stories, free. One email a day.
CDC Gaming reported opposition to prediction markets from regulators and gaming executives at last week’s Global Gaming Expo. NGCB chairman Mike Dreitzer participated in a panel examining compliance, oversight and risk across casinos and prediction markets.
Regulators and gaming executives spoke against prediction markets during a panel at the Global Gaming Expo (G2E) last week, according to a report of the event. The panel, titled "From Casino Floors to Prediction Markets: Comparing Compliance, Oversight, and Risk", was held at The Venetian Expo in Las Vegas. Mike Dreitzer, chairman of the Nevada Gaming Control Board (NGCB), Daniel Wallach, founder of Wallach Legal, and Stephen Martino, senior vice president and chief compliance officer at MGM Resorts International, took part. Tres York, vice president of government affairs at the American Gaming Association (AGA), moderated.
The Indian Gaming Association and American Gaming Association are coordinating opposition to sports betting prediction markets in the US, the report reports. AGA vice-president of government relations Tres York said 15 states are in active litigation and 40 state attorneys general have signed an amicus brief opposing sports gambling through prediction markets. The associations are seeking to influence congressional debate over the issue.
CFTC chair Michael Selig proposed new prediction market rules at the agency’s first Innovation Advisory Committee meeting on Thursday. Selig also defended federal oversight against challenges concerning legality and self-certification limits.
CFTC chair Michael Selig criticised New York Attorney General Letitia James over the dispute about prediction markets, in remarks at a White House meeting on 20 August. James has alleged that Kalshi breached New York sports-betting age rules by allowing people aged 18 to 20 to trade sports-related contracts; Selig said the CFTC had used emergency powers to block a state temporary restraining order.
Reportedly, the Indian Gaming Association's conference chairman addressed how tribes are responding to the growth of sports event contracts from prediction markets. The spread of such contracts creates uncertainty for federally recognised tribes, prompting discussions about the next steps in the fight.