FanDuel and DraftKings Step Back from Nevada as Prediction Markets Take Priority

FanDuel and DraftKings have officially stepped away from Nevada’s regulatory system, marking a notable shift for two operators that helped popularise online wagering across the country. Their withdrawal signals a stronger push toward prediction markets, an emerging area that sits outside traditional sports betting rules and is attracting major industry attention.

Why Nevada Was Never a Digital Stronghold

Both operators have enjoyed rapid growth across most states that allow online wagering, including states with established online sportsbooks and casinos that support digital-access models. Nevada, however, has always stood apart. Strict in-person registration requirements limited digital expansion, and neither company ever developed a significant online presence. Their exit reveals a preference for new national opportunities over maintaining a symbolic presence in a state still reliant on legacy retail systems.

Finalising the Departure

Nevada regulators confirmed that FanDuel relinquished its licences and DraftKings withdrew pending applications. Both moves relate to upcoming products involving sports-event contracts, the type of activity Nevada treats strictly as gambling. FanDuel’s departure marks the closure of its single Las Vegas retail partnership, while DraftKings exits without affecting any active operations.

Nevada Reinforces Its Position

Nevada continues to maintain one of the toughest interpretations of prediction markets in the U.S. State law considers any sports-related contract a gambling product, regardless of federal oversight from the Commodity Futures Trading Commission. The state has recently issued warnings and compliance actions to operators exploring these markets, including Kalshi and Crypto.com. Regulators have made it clear: companies cannot offer prediction markets and hold a Nevada licence at the same time.

Operators Move Ahead Without Nevada

FanDuel is preparing to launch FanDuel Predicts in partnership with CME Group, targeting large states where traditional sports betting remains unavailable. DraftKings plans a similar rollout for its prediction market platform. Both intend to restrict access in tribal territories and states where they operate sportsbooks; however, Nevada’s interpretation suggests that this will not resolve every regulatory concern. Still, the appeal is undeniable; prediction markets offer a broad reach in states where legal sportsbooks are not available.

Legal and Regulatory Questions Continue

Prediction markets face mixed rulings across the country. Courts in different states have disagreed on whether sports-event contracts fall under gambling or financial regulations, and tribal authorities have raised concerns about the impacts on existing compacts. At the same time, prediction-market data has become more visible on major platforms, helping push the category into mainstream discussion.

What Nevada’s Move Means Going Forward

Nevada’s revenue impact from these exits is small, but the wider message is significant. As the country’s most established gambling jurisdiction, its stance may guide how other states respond. Operators could soon face a choice between accessing national prediction market audiences or maintaining traditional sportsbook licenses.

For now, prediction markets sit in a regulatory grey zone. As lawmakers and courts work through the issue, FanDuel and DraftKings have made their priorities clear, and their decision sets the tone for the next phase of the U.S. wagering industry.