BetMGM Confirms it is Not Interested in Prediction Markets

In a world where the country’s top online sportsbooks are scrambling to get in on sports prediction markets, BetMGM is choosing a different path.

The Global Gaming Expo (G2E) was held last week, and sports prediction markets were a hot topic. While the CEO’s from FanDuel (Peter Jackson) and DraftKings (Jason Robins) were excited about the new industry, MGM Resorts International CEO Bill Hornbuckle was far more cautious.

“When we have gaming regulators in three states now telling us ‘don’t do that,’ we have no choice but to take a position.” Hornbuckle shared at G2E, “Are we following it? Would we be a fast follower if, for some reason, it were to break through? Absolutely. But it does invite … the notion that the federal government will step into our space. And that is something this industry has historically and categorically said ‘thank you, but no thank you,’ to for decades.”

Hornbuckle is the first sports betting CEO to acknowledge and comply with the warnings that states have publicly issued over sports prediction markets. 

Arizona, Nevada, and Ohio have all told operators that they would review their sports betting and/or DFS licenses if they offer the controversial markets.

Small Comments Have Big Impact

The statements from Hornbuckle weren’t long, but they could have a powerful impact on the dynamic between the sports betting and prediction market industry for a couple of reasons.

One reason his words hit so hard is his reference to state regulators. The MGM CEO talked about how important their relationship with those groups is and that they will respect whatever regulations are set. This indicates that the warnings about prediction markets are being heard and respected by one of the most prominent names in gambling.

The other reason is his comments on interference from the federal government. The sports betting industry has been vehemently opposed to federal oversight, fearing the heavy taxation and meddling that often come with it. Working with individual states allows them to customize markets and see a wide range of tax rates and regulations.

BetMGM hasn’t come close to the success of DraftKings and FanDuel, but the MGM brand is one of the largest in the US. Their Las Vegas casino and resort remains a staple in the heart of the Strip, having moved there in 1993 after opening its original location in 1973.