DraftKings, Flutter Pull Out Of Nevada Sports Betting Over Prediction Markets Ambitions

• DraftKings and Flutter have withdrawn their applications and licenses, respectively, to offer online sports betting in Nevada.
• Nevada is one of the five U.S. states that have told gambling operators they are in danger of losing their licenses if they expand into prediction markets.
• DraftKings and Flutter have previously announced plans to launch their prediction market platforms by the end of this year or early next year. 

Sports betting giants DraftKings and Flutter Entertainment’s FanDuel appear to be moving decisively toward launching their prediction market platforms.

Despite DraftKings CEO Jason Robins recently downplaying a threat from prediction market rivals, a recent development suggests the companies might be more serious about it than they have publicly shared.

DraftKings and Flutter have withdrawn their application and license, respectively, to offer online sports betting in Nevada, the state’s gaming regulator said in a statement on Wednesday. Nevada, home to the global betting destination of Las Vegas, is one of the five U.S. states that has told gambling operators they are in danger of losing their licenses if they take prediction market bets.

“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 regulator said, according to a Bloomberg report. “This conduct is incompatible with their ability to participate in Nevada’s gaming industry.”

Both firms are gearing up to launch their prediction market offerings before the end of the year. In recent months, platforms like Kalshi and Polymarket have grown in popularity, prompting some analysts to view them as a threat to online sportsbooks. 

In partnership with derivatives marketplace CME Group, FanDuel plans to launch its standalone prediction market app, FanDuel Predicts, next month. DraftKings, which recently acquired the prediction market platform Railbird, has indicated that its own offering will likely debut before year-end or early next year.

Prediction markets are regulated at a federal level by the Commodity Futures Trading Commission (CFTC), while online sports wagers are governed by a state’s gambling rules.

On Stocktwits, the retail sentiment was ‘extremely bullish’ for both DKNG and FLUT as of early Thursday.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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