DraftKings, FanDuel Choose Prediction Markets Over Nevada Licensing

^{DraftKings had applied for a gaming license in Nevada but decided to opt out along with FanDuel over conflicts with offering prediction markets in the state. (Photo: Tofino / Alamy)}

FanDuel and DraftKings, the two largest sports betting operators in the United States, both agreed Wednesday to cease efforts to seek licenses to operate in Nevada, with both companies instead looking to launch prediction markets in other states.

The move comes as the Nevada Gaming Control Board (NGCB) says that any effort to offer prediction markets on sporting events would be “incompatible” with getting a license in the state.

Companies Withdraw All Applications in Nevada

Neither DraftKings nor FanDuel offers either sports betting or fantasy sports products in Nevada, but FanDuel was on the verge of gaining a license to operate in the state before its suitability hearings were removed from the agenda of last week’s NGCB meeting. The change followed an announcement by Flutter, the parent company of FanDuel, that it intended to launch FanDuel Predicts with the help of the CME Group next month. 

On Wednesday, the NGCB issued a notice to all of its licensees announcing that the board had accepted the surrender of all licenses and approvals for FanDuel Sportsbooks along with all pending applications submitted by DraftKings.

“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,” NGCB Chairman Mike Dreitzer wrote. “This conduct is incompatible with their ability to participate in Nevada’s gaming industry."

The Nevada Gaming Control Board considers prediction markets and event contracts as wagers under state law, regardless of whether it is on an exchange regulated by the Commodity Futures Trading Commission (CFTC).

Nevada Among Several States Taking Action Against Sports Prediction Contracts

This position is nothing new for Nevada regulators. In March 2025, the NGCB issued a cease-and-desist order to prediction market operator Kalshi, arguing that its contracts were an attempt to bypass the state’s gaming regulations. Kalshi has since been fighting similar battles with regulators in other states over the issue as well. 

FanDuel concurred that its goals may be incompatible with those of the NGCB but pointed out that it has worked cooperatively with many other regulators.

“FanDuel has built our business on operating within clear regulatory frameworks and maintaining strong partnerships with state gaming regulators across the 24-plus jurisdictions where we hold licenses,” a FanDuel representative told the Las Vegas Review-Journal in an email. “While we are enthusiastic about expanding FanDuel’s presence in Nevada, our views of the current opportunity for prediction markets outside of regulated states are unfortunately in direct opposition to Nevada’s priorities for its licensed operators.”

DraftKings is also moving swiftly towards being able to offer prediction markets nationally. The company applied to join the National Futures Association in August and announced in October it was acquiring Railbird, another predictions platform.

“As part of our ongoing commitment to regulatory compliance, we have withdrawn our inactive application in Nevada,” DraftKings Chief Compliance Officer Jen Aguiar said in a statement. “Prediction markets are federally regulated by the Commodity Futures Trading Commission, and we remain dedicated to working collaboratively with regulators to uphold the highest standards of integrity in our operations.”