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BetMGM Challenges Prediction Market Regulation in North America

BetMGM Calls for Enforcement Against Prediction Markets – Operator Says Uneven Regulation Distorts Competition

Key Takeaways

• BetMGM states that regulated gambling operators cannot compete fairly with prediction market platforms.
• The company’s Director of Responsible Gambling urged stakeholders to remove prediction markets from state gambling markets.
• BetMGM argues that prediction market operators do not follow the same compliance and responsible gambling rules as licensed sportsbooks.
• Platforms such as Polymarket and Kalshi are regulated federally through the Commodity Futures Trading Commission, not at state level.
• Other major US operators have launched their own prediction market platforms, while BetMGM has taken a different position.

BetMGM Criticizes Regulatory Disparities Between Sportsbooks and Prediction Markets

BetMGM has intensified its criticism of prediction market platforms, stating that licensed gambling operators in North America face an uneven competitive landscape. Speaking at SBC Summit Canada, Richard Taylor, Director of Responsible Gambling at BetMGM, said the current environment does not provide a level playing field.

According to Taylor, prediction market operators are offering products that resemble gambling but do not acknowledge them as such. He argued that these platforms are not subject to the same regulatory standards, compliance obligations, and responsible gambling requirements imposed on state regulated sportsbooks.

Taylor told attendees that he supports competition when all participants operate under the same rules. He stated that prediction market companies do not implement the same programs as licensed operators and are not subject to equivalent violations or restrictions. In his view, this creates a structural imbalance in markets where both models are accessible to consumers.

For users who compare betting platforms, this distinction is relevant because it affects oversight, compliance structures, and the regulatory authority supervising each operator.

Federal Versus State Oversight Shapes the Debate

A central issue in the dispute is the difference in regulatory frameworks. Licensed gambling operators such as BetMGM operate under state level regulation in the United States. This typically includes specific requirements related to responsible gambling programs, consumer protection, and compliance monitoring.

Prediction market platforms such as Polymarket and Kalshi, by contrast, are regulated at the federal level through the Commodity Futures Trading Commission. This distinction means they are not licensed as state gambling operators.

BetMGM’s leadership has publicly questioned whether prediction markets are effectively offering sports betting in jurisdictions where online sports wagering is not regulated at state level. Adam Greenblatt, Chief Executive Officer of BetMGM, has previously stated that such activity amounts to illegally offering sports betting in markets where the vertical is not authorized.

The regulatory divide is shaping how operators position themselves. While BetMGM is calling for enforcement action, other major sportsbook brands have chosen a different approach.

Diverging Strategies Among Major US Operators

BetMGM stands out among large North American betting operators due to its stance on prediction markets. Competitors including FanDuel, DraftKings, and Fanatics have launched their own prediction market platforms.

These companies have cited the opportunity to capture market share in states where they do not currently offer online sports betting as a key reason for entering the segment. By operating under a federal framework, prediction market platforms can potentially reach users in jurisdictions where state regulated sportsbooks are not active.

BetMGM has instead focused on highlighting what it describes as regulatory inconsistencies. Taylor emphasized that if the industry aims to create a safe and sustainable ecosystem, stakeholders must address what he called bad actors through meaningful enforcement.

For international observers and users evaluating platforms, the contrast illustrates two strategic responses to the same regulatory environment: expansion into federally regulated prediction markets or advocacy for stricter enforcement against them.

Responsible Gambling and Youth Exposure in Focus

The discussion at SBC Summit Canada also addressed responsible gambling and youth exposure, with prediction markets described as a significant issue in that context.

Elaine McDougall, Senior Vice President of Strategy and Programs at the Responsible Gambling Council, referred to prediction markets as the big elephant in the room during a panel on educating children and young people about responsible gambling.

She noted that younger generations are growing up with constant access to screens and digital platforms, increasing their exposure to gaming and social media environments from an early age. McDougall stressed that prevention education should begin as soon as children enter school. While elementary students may not be taught betting odds, she argued that financial literacy and risk awareness are essential foundations.

At the university level, Dr Michael Naraine, Associate Professor at Brock University, said current efforts to connect with college aged students on responsible gambling issues have been inadequate. He highlighted that many students are already placing bets during everyday activities, including in classrooms.

Naraine emphasized the need to engage younger adults in the environments where they spend time, such as campuses and sports venues. According to him, direct engagement in these spaces allows stakeholders to create face to face connections and discuss responsible gambling practices more effectively.

Regulatory Classification Remains Central to Market Structure

The core disagreement centers on how prediction markets are classified and supervised. BetMGM maintains that products offered by these platforms constitute gambling and should be subject to equivalent rules as state licensed sportsbooks.

Prediction market operators, operating under federal oversight through the Commodity Futures Trading Commission, are positioned differently within the US regulatory system. This structural distinction influences licensing requirements, compliance obligations, and market access across states.

For users comparing platforms, the classification determines which authority oversees the product and which compliance framework applies.

Our Assessment

BetMGM’s statements at SBC Summit Canada highlight an ongoing regulatory and competitive dispute between state regulated sportsbooks and federally regulated prediction market platforms. The company argues that differing oversight structures create an uneven competitive environment and calls for enforcement action. At the same time, other major operators are expanding into the prediction market segment under the existing federal framework. The issue centers on regulatory classification, compliance standards, and responsible gambling obligations, all of which directly affect how these products are offered in the North American market.