The Nevada Gaming Control Board is the latest gaming regulator to warn its licensees against offering sports predictions.
The NGCB sent out a memo from Chairman Mike Dreitzer Wednesday evening with the details.
The tone is similar to the warnings from Arizona, Michigan and Ohio: sports predictions are sports betting and offering them, even outside of Nevada, could impact a gaming license.
“Engaging in unlawful sports wagering in another state or entering into a business relationship with another entity offering unlawful sports wagering in another state may call into question the good character and integrity of the licensee,” Dreitzer said.
Nevada warning future licensees, too
The memo was not just for current licensees, like Caesars, MGM Resorts or Penn Entertainment, which all have casinos in Nevada and offer sports betting around the country.
Dreitzer also makes it clear that the NGCB will look at past actions for companies that apply for a Nevada license in the future.
“The Board reminds licensees to be mindful of their obligations to maintain suitability and comply with all applicable laws in all jurisdictions where they operate,” Dreitzer said. “Further, the Board will consider any such conduct when evaluating suitability for new applications filed pursuant to the Gaming Control Act.”
None of the current Nevada licensees have said they are jumping into sports predictions, with Caesars and Penn noting they are monitoring court cases around the issue. MGM’s BetMGM, meanwhile, made it entirely clear the company agrees with regulators and will stay out of sports predictions unless they are deemed legal.
Not just sports predictions
The memo also makes it clear that the NGCB considers more than just sports predictions to be illegal wagers.
“The Board considers offering sports event contracts, or certain other events contracts, as constituting wagering activity under NRS 463.0193 and 463.01962. Wagering occurs whether the contract is listed on an exchange regulated by the Commodity Futures Trading Commission (CFTC) or elsewhere.
“Examples of event contracts that the Board specifically considers to be wagering subject to its jurisdiction include event contracts based on the outcome or partial outcome of any sporting or athletic event, or other selected events such as the World Series of Poker, the Oscars, Esports, and political elections (“Sports and Other Event Contracts”).”
That distinction could change how some sports betting companies approach prediction markets. FanDuel parent Flutter is reportedly eyeing a predictions launch by the end of the year, DraftKings is considering its options, and Underdog already launched sports predictions in multiple states.
