Chavdar Vasilev is a journalist covering the casino and sports betting market sectors for CasinoBeats. He joined CasinoBeats in May 2025 and reports on industry-shaping stories across the US and beyond, including legislative debates, market...
Read Full BioThe Nevada Gaming Commission (NGC) has raised concerns about FanDuel’s entry into prediction markets, emphasizing a potential conflict between state law and federal oversight.
During the August 21 meeting, representatives from Flutter, FanDuel’s parent company, attended for a shelf registration application (routine corporate financing).
Mark Irwin, Flutter’s group director of finance, provided a financial update, stating that FanDuel continues to hold the top spot in sports betting and iGaming in the US in terms of market share.
He also highlighted the operator’s growth. Furthermore, Irwin noted that Flutter now owns 100% of FanDuel after acquiring the remaining 5% from Boyd Gaming.
Commissioners Stress Regulatory Conflict
After Flutter wrapped its financial presentation, Commissioner Brian Krolicki raised the question about the company’s announcement that FanDuel is entering prediction markets in partnership with CME Group.
Erica Okerberg, Flutter’s legal counsel in Nevada, led the response. She said there are no definitive decisions on what types of contracts will be offered, when they will be offered, or where they will be offered.
She assured the commission that the company is following all regulatory requirements. That includes reviewing them with its own compliance committee and with the Nevada Gaming Control Board (NGCB).
Okerberg also responded to Krolicki’s question about FanDuel’s discussions with Kalshi by saying there are no plans for a partnership at this point.
Krolicki emphasized his courteous approach, given Flutter’s compliance record in the state, but mentioned:
“You’re moving in direction of CFTC [Commodity Futures Trading Commission] oversight… You understand we’re in a lovely position of litigation not only as commission but personally.”
He continued: “You know, this events market is a very sensitive spot for us. And, you know, it’s concerning when you’re walking up, you know, to the door here, participating in these prediction markets when certain activities, if not the predominance of activities, are in conflict with this state and our gaming control act.”
Krolicki repeatedly underscored the risks prediction markets pose under state law:
“At some point in time, you know, the CFTC may be in conflict with the state of Nevada and other gaming jurisdictions. …
“So to reconcile, you know, complying with federal and state matters, that’s not possible today. So, you know, I gently and respectfully remind you, you are licensed here.”
He reminded FanDuel that in Nevada’s eyes, prediction markets fall outside the state’s definition of legal wagering even if the CFTC approves them.
Chair’s Remark on Federal Court Risk
Commission Chair Jennifer Togliatti closed the discussion with a remark that mixed levity with caution:
“What I think I’ve heard is we’ll run it by compliance, and we’ll talk to you first before we sue you in federal court. Is that what I’m hearing?”
FanDuel’s team responded that the partnership with CME remains exploratory and emphasized:
“We’re still exploring what contracts [we] might offer in what jurisdictions [we] might offer them, and [we’re] going to be very thoughtful about that. There’s absolutely no intention to file suit anywhere with respect.”
Togliatti added that while licensees and regulators might not always agree, sitting down and discussing an issue first is the better approach, rather than going straight to litigation.
Broader Context: Ongoing Litigation Over Prediction Markets
The Commission’s unease reflects Nevada’s broader legal battles with prediction markets, specifically sports event contracts. The regulators argue that the events violate the Nevada Gaming Control Act. The law limits betting to clearly defined categories such as sports and casino games.
In March 2025, the NGCB issued a cease-and-desist letter to Kalshi. The platform responded with a countersuit. In April 2025, a federal judge granted the predictive market’s request for a temporary restraining order and preliminary injunction.
The case is ongoing, and last week the state requested a formal discovery process. It calls for Kalshi to provide evidence that the contracts it offers in Nevada comply with the state’s gaming laws.
A few days before FanDuel announced its entrance into prediction markets, Robinhood also sued Nevada, along with New Jersey. The financial trading platform, which partners with Kalshi to offer prediction markets, filed the lawsuits preempting any action against expanding sports prediction markets to include the NFL and college football.
Kalshi and Robinhood contend that federal preemption applies: if CFTC authorizes an event contract, states cannot block it. However, many states, including Nevada, disagree, maintaining that they have the authority to regulate gaming within their borders.
The unresolved lawsuits mean operators exploring prediction markets face a live conflict between federal and state regulators. As Krolicki put it: “Until the courts resolve this today, I would suggest they are in conflict.”
