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Nevada Gaming Management Board chairman Mike Dreitzer has warned that, following growth into sports activities betting, on-line casinos shall be subsequent for prediction markets.
Prediction markets, comparable to Polymarket and Kalshi, have quickly expanded their sports activities markets to incorporate all main esports occasions. Polymarket not too long ago cemented its presence within the sphere by signing a take care of GRID.
This is step one of a “three-act play,” warned Dreitzer. The subsequent step is to supply on-line casino-style video games, adopted by migrating these merchandise into bodily digital gaming terminals resembling slot machines.
Valuations Want Larger Income Than Sports activities Betting
Kalshi introduced a $1 billion Collection F funding spherical in Might 2026, valuing the corporate at $22 billion. Polymarket is valued at round $15 billion.
Talking on the Nationwide Council of Legislators from Gaming States’ Summer time Assembly in San Diego, Dreitzer mentioned these valuations can’t be sustained purely from sports activities markets.
“They don’t get to the valuations that they’ve in sports activities betting,” Dreitzer mentioned. “They’ve received to do greater than that.”
He added that gaming producers have repeatedly demonstrated a capability to transform one type of regulated wagering into digital merchandise which are largely indistinguishable from conventional slot machines.
“I can inform you that the individuals on this phase are very nice at ingenuity,” Dreitzer mentioned. “If there’s a correct loophole, they’re going to search out it.”
Nevada has been probably the most profitable state at driving out prediction markets. The state has blocked entry to Polymarket, Kalshi, and Crypto.com. Moreover, FanDuel and DraftKings withdrew their purposes for sports activities betting licenses as they expanded into prediction markets.
With a heavy reliance on income from the state’s licensed casinos, Nevada is eager to guard the trade from rivals.
Betr COO Experiments With Slot-Like PMs
A slot-like prediction market is feasible, and Betr COO Alex Ursa has proven the way it might work. Ursa posted on X a slot-like interface he constructed on Kalshi that used totally different sports activities markets to ‘spin’ the slot.
I hope I am not going to get my @Kalshi private account blocked however I’ve construct a Slot on prime of their APIs. I can tweak with it to make it kind of volatiles, this very could be very low volatility one and with some restrictions however sky is the restrict.These are all actual… pic.twitter.com/w2ozrnLrQK— alex ursa (@alexursa) June 17, 2026
Kalshi responded by blocking Ursa from its platform.
“This has nothing to do with Kalshi and may be completed on prime of the NYSE or the rest,” Kalshi spokesperson Elisabeth Diana acknowledged. “We additionally blocked him as a result of it’s towards our insurance policies.”
Betr has partnered with Polymarket to supply prediction markets, however has not introduced any plans to make use of Ursa’s creation on its platform.
Esports Video games Present Mannequin For PMs
Prediction markets have already pushed the boundaries of what constitutes a monetary product into all types of sports activities markets.
Sportsbooks have equally pushed the boundaries into casino-style video games, with choices comparable to Historic Horse Racing (HHR) and “Video games powered by Previous Motor Races”, which Laborious Rock Guess launched final yr.
Howard Glaser, who works at slot developer Gentle & Marvel, mentioned he additionally believes prediction markets will push into on line casino gaming.
The CFTC proposed new guidelines on prediction markets final month, together with prohibiting “occasion contracts that settle primarily based on purely random occasions, such because the spin of a roulette wheel or the result of a random-number generator.”
However Glaser says the HHR loophole might be utilized by operators.
“Necessary to notice that the CFTC proposed rule wouldn’t forestall ‘gamification’ of non-random occasions – a on line casino or slots simulated reveal married to actual time, actual world info (assume “ahead wanting HHR” – Bloomberg terminal meets slot show),” Glaser wrote on LinkedIn.
Prediction Lounges May Be On Each Avenue Nook
The endgame might be prediction lounges on each avenue nook, notably in states with no business casinos, Dreitzer warned.
“Take into consideration a ‘prediction lounge’ proper subsequent to a church,” he mentioned. “That’s an actual risk right here.”
Polymarket opened ‘The State of affairs Room’ in Washington DC in March, a pop-up bar aimed toward attracting prediction market customers. The three-day occasion doesn’t seem to have been overly profitable, suggesting Dreitzer’s considerations could also be overstated.
