Nevada and Louisiana Regulators Urge Action on Prediction Markets

(AsiaGameHub) –   The head of the Nevada Gaming Control Board, alongside his counterpart from Louisiana, has called on the gaming industry to adopt a firmer stance against the burgeoning trend of sports event prediction markets, cautioning that these platforms are circumventing established state regulatory frameworks.

“We Have to Look It in the Eye”

Addressing industry leaders at the International Conference on Gambling and Risk Taking, held at the Bellagio in Las Vegas, Mike Dreitzer conveyed a strong message amidst growing discussions about platforms that enable users to trade on sports outcomes while operating outside conventional gambling structures.

“As an industry, we have to stand for things,” Dreitzer stated. “We have to have standards. That’s not regulatory capture and overregulation.

When this wholesale creation comes about, where all of a sudden we have an end run that allows for sports betting in 50 states, we have to stand up to it. We have to look it in the eye and say this is sports betting. It’s wrong for you to do that.”

Dreitzer further emphasized that Nevada regulators are not opposed to innovation, but stressed that new products must still undergo standard processes designed to protect consumers.

He pointed out that prediction markets operating under federal commodities rules have effectively bypassed state-level gambling regulations, leading to enforcement actions, including cease and desist orders.

“We Have to Protect Them” 

Dreitzer contended that the existing regulatory framework is in place to ensure integrity, prevent underage access, and mitigate risks associated with problem gambling and financial crime.

“The standards we have are there for a reason,” Dreitzer asserted. “They’re not consumer unfriendly, but they’re there to protect people.”

His Louisiana counterpart, Christopher Hebert, shared these concerns during a joint discussion, expressing full support for Nevada’s position and characterizing the issue as one of public protection and fairness.

“We have to protect them,” Hebert declared, referring to it as a “fundamental fairness issue.”

Both regulators cautioned that the industry is approaching a critical juncture with the proliferation of prediction-style products across the United States, arguing that a lack of decisive action and oversight gaps could widen, leading to compromised safeguards concerning cybersecurity, responsible gambling, and age verification.