FanDuel and DraftKings have withdrawn from Nevada after the state’s regulator ruled that offering sports contracts through their prediction market operations would violate local gaming laws.
On 12 November, the Nevada Gaming Control Board (NGCB) accepted the voluntary surrender of Flutter Entertainment’s licences and approved DraftKings’ request to withdraw its licence application.
According to the NGCB, both operators intended to pursue unlawful activities related to sports event contracts, prompting the decision.
This development followed Flutter’s announcement that it plans to launch sports contracts next month through FanDuel Predict, its new prediction market venture with CME. Flutter’s Q3 report confirmed the partnership will operate on a 50/50 revenue split. DraftKings, meanwhile, is preparing its own launch after acquiring Railbird, a CFTC-registered platform.
NGCB stated:
This conduct is incompatible with their ability to participate in Nevada’s gaming industry. The board takes seriously its obligation to operate a thriving gaming industry and to protect Nevada citizens.
The situation signals the clearest indication yet that operators entering prediction markets may be putting certain state licences at risk.
FanDuel’s Nevada licence covered only a retail sportsbook, but similar regulatory stances in other states could carry heavier consequences. Even so, Flutter’s management maintained a confident tone.
