BetMGM emphasizes challenges in competition with prediction markets

(AsiaGameHub) –   BetMGM has intensified its criticism of prediction market platforms, asserting that regulated gambling operators cannot compete on an equal playing field with this burgeoning sector.

During the SBC Summit Canada, the company’s Director of Responsible Gambling, Richard Taylor, urged stakeholders to “remove them from our markets.”

He stated: “I enjoy competition, but only when everyone adheres to the same rules. Currently, there’s an environment where prediction market operators refuse to acknowledge their offerings as gambling, despite them being precisely that.

“They are not bound by the regulations I must follow, nor are they implementing the programs I have in place, and they are not adhering to any violations or restrictions.

“To foster a truly secure ecosystem, a sustainable business environment, and to ensure people are protected, we must effectively address these bad actors through meaningful enforcement.”

Unlike traditional gambling operators, which are subject to state-level regulations, platforms such as Polymarket and Kalshi are regulated federally by the Commodity Futures Trading Commission (CFTC).

BetMGM’s position on prediction markets makes it somewhat unique within the North American sports betting landscape.

Competitors like FanDuel, DraftKings, and Fanatics have launched their own prediction market platforms, viewing it as a strategy to gain market share in states where they do not currently offer online sports betting.

Taylor’s remarks align with the views of BetMGM’s Chief Executive Officer, Adam Greenblatt, who has consistently argued that prediction markets are illegally providing sports betting services in unregulated markets.

Engaging with the target audience

Elaine McDougall, Senior Vice President of Strategy and Programs at the Responsible Gambling Council, identified prediction markets as a significant concern during a panel discussion on effectively educating young people about responsible gambling.

She highlighted that younger generations are the first to grow up with constant access to screens, leading to earlier exposure to social media and gaming platforms.

“Prevention education should commence as soon as children start school,” McDougall advised.

“While we may not be teaching them about odds and betting strategies in elementary school, it is crucial to educate them on financial literacy, risk assessment, and understanding risk.”

Regarding older demographics, Dr Michael Naraine, an Associate Professor at Brock University, criticized the “incredibly ineffective” efforts by responsible gambling advocates to connect with college students in North America.

He stressed the importance of “reaching this generation where they live,” whether that be on university campuses or at sporting events they attend.

Naraine explained: “My students are placing bets in the classroom. When I ask who is betting tonight, hands go up. This is where face-to-face engagement can occur.

“When we discuss sports leagues and other stakeholders, we must connect with them at these venues.”