Introduction to Sports Betting in the US
The sports betting landscape in the United States is complex and constantly evolving. Two of the largest sports betting operators, FanDuel and DraftKings, have recently made significant decisions regarding their operations in Nevada. In this article, we’ll explore the details of these decisions and what they mean for the future of sports betting.
The Decision to Withdraw from Nevada
FanDuel and DraftKings have agreed to not seek licensing in Nevada, instead focusing their efforts on launching prediction markets in other states. This decision comes after regulators stated that prediction markets are “incompatible” with Nevada’s gaming regime. The companies have voluntarily surrendered any previous approvals and withdrawn pending applications.
Background on Prediction Markets
Prediction markets are a type of betting that involves wagering on the outcome of events, such as sports games or elections. These markets are regulated federally by the Commodity Futures Trading Commission (CFTC). FanDuel and DraftKings are expected to target states without sports betting, such as California and Texas, with their own version of prediction markets.
Impact on Nevada and Other States
Nevada is one of nearly two dozen states and tribal gaming authorities that have filed federal lawsuits seeking to block prediction markets from offering sports wagering contracts in their jurisdictions. Multiple cases are currently making their way through the federal judicial process, with experts predicting that a legal remedy may not be in place until 2026.
Partnerships and Acquisitions
FanDuel owner Flutter Entertainment has announced a partnership with the Chicago Mercantile Exchange to potentially create an event contracts platform in the US. Meanwhile, DraftKings has applied to join the National Futures Association and has acquired predictions platform Railbird as it prepares to launch a mobile platform called DraftKings Predictions.
Conclusion
The decision by FanDuel and DraftKings to withdraw from Nevada and focus on prediction markets in other states marks a significant shift in the sports betting landscape. As the legal landscape continues to evolve, it’s likely that we’ll see more changes in the way sports betting is regulated and operated. For now, it’s clear that FanDuel and DraftKings are positioning themselves for success in the growing prediction markets industry.
