Caesars, MGM Signal Prediction Markets Aren’t Worth the Risk

Caesars Entertainment (NASDAQ: CZR) and MGM Resorts International (NYSE: MGM), the two largest casino operators on the Las Vegas Strip, are steering clear of prediction markets over concerns that entering the space could jeopardize their state gaming licenses.

Speaking at the Global Gaming Expo (G2E) in Las Vegas this week, Caesars CEO Tom Reeg and MGM CEO Bill Hornbuckle said the prediction market juice isn’t worth the regulatory squeeze. Regulators in several states, including Nevada, have warned that entering the event contract space could put operators’ traditional gaming licenses at risk.

In his G2E address, Hornbuckle noted MGM, likely through its BetMGM joint venture, mulled getting into prediction markets in early 2025, but rapidly thought better of it based on the belief such a move could harm its core businesses.

The MGM chief executive added that the Nevada Gaming Control Board (NGCB) warned the company that a move into prediction markets could jeopardize its state gaming licenses.

Other Licenses Could Be Risked, Too

On the Strip, Caesars and MGM collectively operate 17 integrated resorts. Caesars is also a dominant operator in regional Nevada markets, including Lake Tahoe, Reno, and Laughlin.

Simply put, a prediction market push isn’t worth the regulatory risk for either operator—especially given Nevada’s clear opposition to event contract platforms.

Nevada isn’t the only jurisdiction where Caesars and MGM face exposure. New Jersey is among several states taking a firm stance against event exchanges. There, Caesars and MGM combine to operate four of Atlantic City’s nine Boardwalk casino properties.

A move into prediction markets could also threaten operators’ lucrative iGaming and sports betting licenses. Arizona serves as a prime example, where at least one operator previously lost a sports wagering license following an entry into event contract trading.

By gross gaming revenue (GGR) market share, BetMGM and Caesars rank as the third- and fifth-largest U.S. online sportsbook operators, respectively, while holding prominent market positions in internet casino gaming.

CEOs Point to Lax Oversight

Both Hornbuckle and Reeg believe the prediction market industry needs more robust guardrails. At G2E, the MGM CEO appeared to question why prediction markets allow bettors and traders on their platforms as young as 18 years old when the minimum age to bet on sports or wager in a casino is 21.

For his part, Reeg pointed out that a major yes/no exchange offered an event contract on whether Caesars would be acquired this year and he probably could have purchased those derivatives had he wanted to.

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