MGM Resorts International CEO: Prediction markets are “not something we endorse”
Bill Hornbuckle says the operator "would be foolish” not to keep an eye on the vertical, despite apprehension over how the space is regulated
MGM Resorts International CEO Bill Hornbuckle has said the company is not in favor of the rollout of prediction markets, although it will keep a close eye on developments within the space.
Major US operators have made moves to enter the prediction markets sector in the recent weeks, with the sector continuing to garner attention across the country.
This week, DFS operator Underdog announced its foray into the vertical via a collaboration with Crypto.com, with the firm offering sports event contracts in 16 US states.
Last month, FanDuel announced it had partnered with CME Group to launch a prediction markets joint venture (JV) later this year.
At this point, the FanDuel JV has made no initial reference to sports event contracts, instead focusing on markets such as oil and gold prices and the S&P 500.
Polymarket is set to return to the US via its acquisition of QXC, while Kalshi has rolled out a host of new football markets ahead of the NFL’s return today, September 5.
Speaking at the Bank of America Gaming, Lodging and Leisure conference yesterday, September 4, Hornbuckle admitted that MGM will monitor prediction markets developments closely, even if it doesn’t support the vertical.
He said: “MGM Resorts’ view is [prediction markets] invite the federal government into a space it’s never been, and it’s not a place we’d like to see this marketplace go, full stop. We’re going to watch. We’d be foolish not to.”
Hornbuckle went on to reference the impact of prediction markets, or betting exchanges, in the UK as an example. The product taking the US by storm has been commonplace in the UK via the likes of Betfair since the turn of the millennium.
He continued: “The prediction markets are in UK, they’ve been there for 20 years. They’re a piece and a part, they’re under 10% market share and they get beat up a lot. If you go play on these prediction markets, you may not even have to be that sharp to figure out what to do.
“So it’s out, it’s real. We have to contend with it and understand it. We’ve got to be ready for it if it becomes even realer [sic]. But officially, it is not something we endorse.”
During a Q2 earnings call in July, BetMGM CEO Adam Greenblatt also stated that the Entain and MGM Resorts JV would not be a first mover in the prediction markets space.
The perceived overlap between prediction markets and sports betting has led to staunch opposition of the former from several US regulators.
Last month, senior executives from the NFL advised players and staff against using platforms such as Kalshi and Robinhood as they consider them akin to sports betting.