FanDuel and DraftKings have renounced their respective Nevada licensing applications, following confirmation of the state’s anti-predictions stance.
The former had served Silver State customers at the Fremont Hotel and Casino in Las Vegas through a partnership with Boyd Gaming, while the latter planned to acquire a state license.
However, the Nevada Gaming Control Board confirmed that both operators would cease all operations ahead of proposed entries to the predictions market.
In a statement, the NGCB said: “It has been made clear to the board that Flutter Entertainment/FanDuel and DraftKings intend to engage in unlawful activities related to sports event contracts. The conduct is incompatible with their ability to participate in Nevada’s gaming industry.”
Predictions products are outlawed by Nevada law – forcing FanDuel and DraftKings to depart before launching new contract-based facilities.
Moreover, the NGCB’s opposition to sports trading is well understood. Earlier this year, the state regulator submitted cease-and-desist letters to notorious prediction platform, Kalshi, which resulted in the operator taking successful legal action against Nevada’s gaming board.
The NGCB also took issue with Robinhood and Crypto.com, who, like other prediction market entities, argue that they can legally operate under the oversight of the Commodity and Futures Trading Commission (CFTC).
Thus, DraftKings and FanDuel are the latest to be impacted by Nevada’s unwavering view toward prediction platforms.
FanDuel to launch predictions platform in December
FanDuel revealed its new standalone mobile predictions platform, FanDuel Predicts, during a Q3 earnings call on November 12. Developed in collaboration with CME Group, this sports trading application is set to go live before the turn of the year.
Players in states where sports betting is not yet legal, such as Texas, will be able to trade on sports outcomes via FanDuel Predicts.
On that point, FanDuel expressed that its Predicts service shall only remain active in states where online sports betting is illegal: “In states where online sports betting is not yet legal, customers who are not on tribal lands will be able to trade event contracts on the outcome of sporting events. As new states legalize online sports betting, FanDuel will cease offering sports event contracts in those states.”
During the call, Flutter CEO Peter Jackson voiced disappointment – albeit with a tinge of optimism – at the operator’s Nevada departure: “While we’re sad to have to surrender the licence, that’s what we’ve done. Nevada were protecting their interest. We need to protect our interest. And FanDuel Predicts will allow us to go after the half of the market that we haven’t previously been able to go after.”
Similarly, DraftKings announced its intention to deliver sports trading through DraftKings Predict “in the coming months” during a recent investors meeting.
With Nevada firmly against all predictions activities, the situation for all parties had become untenable.
It is not the first state to hit back against the rise of sports trading – like prediction markets and Kalshi – as Massachusetts, New Jersey, Kentucky, Illinois, Georgia and South Carolina have all formed notable opposition to prediction-focused services.
Now, attention turns to the rest of the US – where FanDuel, DraftKings and other domestic competitors seek to outperform existing prediction platforms, and regulators endeavor to halt sports trading.
