DraftKings & FanDuel Withdraw Nevada License Applications Due to Prediction Market Bans

The Nevada Gaming Control Board has been fiercely opposed to prediction markets operating not only in the Silver State but throughout the nation.

As a result, DraftKings and FanDuel have withdrawn their inactive sports betting licenses in Nevada after announcing plans to enter the prediction market sector.

Time to Choose

Neither DraftKings nor FanDuel had launched their sports betting platforms in Nevada, but both had inactive licenses and approvals from the state’s regulatory commission.

However, with the legal drama heating up between state gaming boards and platforms like Kalshi and Polymarket, the two most popular U.S. mobile sportsbooks decided to pull their licenses and registrations from the nation’s gambling epicenter.

FanDuel, which has announced the December launch of FanDuel Predicts in states where sports betting is not allowed, released the following statement, which read, in part, “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 has also announced its plans to launch in the prediction market under its DraftKings Predictions banner, courtesy of its acquisition of Railbird Technologies in October, but it has not specified a date as of this writing.

NGCB Stands Firm

The Nevada Gaming Control Board has sent several cease-and-desist letters to prediction market platforms; chief among them is Manhattan-based Kalshi.

Legal battles at the federal level have also ensued, with Kalshi winning the early rounds and its governing board, the Commodity Futures Trading Commission, taking a laissez-faire approach under the Trump administration in which Donald Jr. sits on Kalshi’s advisory board.

Although neither DraftKings nor FanDuel was active in Nevada’s sports betting market, their applications had been approved in the event that either was planning to launch at some point in the future. However, those plans have now been put on hold after both withdrew their licenses.

In October, NGCB sent out a memo from Chairman Mike Dreitzer, stating, “Engaging in unlawful sports wagering in another state or entering into a business relationship with another entity offering unlawful sports wagering in another state may call into question the good character and integrity of the licensee.”

Therefore, the NGCB was not only concerned about prediction markets operating within Nevada but also sports betting operators engaging in the prediction market outside of its boundaries. This is what prompted the withdrawals from DraftKings and FanDuel, as both intend to launch their respective prediction market platforms in states without legalized sports betting.