BetMGM CEO Adam Greenblatt has said the operator will not offer prediction markets until the “legal position is clarified”.
Earlier this month, NYSE owner Intercontinental Exchange invested $2bn in Polymarket ahead of the platform’s re-entry in the US market.
Prediction markets were the hot topic at G2E Las Vegas last week, with the AGA CEO and president, the CEOs of Flutter, DraftKings, MGM Resorts International and countless other industry members all commenting on the controversial vertical.
Ranging from descriptions including “irresponsible” to a “threat to gambling”, prediction markets are yet to be regulated by a single US state regulator.
In his prepared remarks during BetMGM’s analyst call on Tuesday (October 14), Greenblatt touched on the vertical briefly, labelling it “illegal” and highlighting the dangers customers face when playing them, such as the lack of customer protection compared to betting with a licensed operator.
During the Q&A segment, the CEO was asked if there was a possibility of partnering with a predictions market platform, to which he responded by stating that until legalised, the North America-facing JV would not go down that route.
Greenblatt said: “BetMGM is not going to actively put ourselves on the wrong side of our regulators first and foremost.
“Our regulators have been very clear that we are not able to participate in sports prediction markets until the legal situation is clarified. So where does that leave us?
“I wouldn’t want to speculate about what might happen in the interim but just know that for all the reasons I outlined in my prepared remarks, we believe that this is not good for the integrity of sport, our players our states.
“Every effort is going to be made and is being made to ensure there is a level playing field and an appropriate playing field, but I wouldn’t want to comment on that further.”
No ambiguity
Greenblatt highlighted that several US state regulators have reached out to the operator, to issue warnings that should BetMGM offer prediction markets, it would be at risk of losing its licence in those respective states.
Noting that BetMGM met with regulators during the G2E trade show, he reiterated there will be no alterations to the operator’s position until the vertical is legalised.
He added: “We’ve received letters from a number of our state regulators where they have been really explicit about their perspective on prediction markets.
“They have been clear, ‘your licence becomes questionable if you offer prediction markets in our state’ and ‘we will also consider your licence very carefully if you offer prediction markets anywhere’.
“There’s no ambiguity in that position. As diligent and proper licensees, we take that very seriously.
“On top of which, at G2E last week in Las Vegas, we met a number of our regulators and, without fail, the position is consistent.
“Until the legal position is clarified and the position of our regulators is different from that which they hold today, I feel like as an industry the next step is pretty plain.”
Greenblatt was speaking after BetMGM reported Q3 revenue had jumped 23% year on year to $667m.
At G2E last week, he told EGR that he had a “conceptual problem” with predictions being labelled a betting and gaming experience.
The post BetMGM will not defy gaming regulators and offer prediction markets, insists CEO first appeared on EGR Intel.
Adam Greenblatt makes clear the North American JV will not circumvent state laws after regulators reiterate their stance on the vertical in letters sent to the operator
The post BetMGM will not defy gaming regulators and offer prediction markets, insists CEO first appeared on EGR Intel.