At last week’s Global Gaming Expo in Las Vegas, American Gaming Association CEO Bill Miller warned of the threat that more popular services that circumvent gaming rules represent to the industry and its customers, much like a general preparing his army for battle.
Miller’s animosity was mostly directed at prediction markets, where investors can purchase contracts that settle like bets based on the outcome of an event. Each contract’s value fluctuates according to buying and selling trends, much like the stock market.
If someone buys “yes” on whether it would rain on a specific day for 60 cents, they gain a 40-cent profit every contract held if they are correct. Prediction markets, in which users trade with one another, claim to estimate public opinion based on the current pricing of their contracts.
The spread of prediction markets into sports has proven to be the most concerning for those attending this year’s expo. When the Raiders face the Titans today, Americans can place bets in the prediction market on which team will win, as well as the total score and margin of victory, independent of state rules.
ALSO READ: A sports bettor turns $15 into $140,000, but risky parlays keep sportsbooks winning.
And this competes directly with licensed sports betting.
“The AGA and our members are mobilizing across every battlefield,” according to Miller. “They’re threatening the communities we serve, the customers and consumers we protect and the standards we uphold.”
The topic of prediction markets snuck into panels at this year’s G2E, as the industry faces continuous legal struggles to regulate the expanding sector. While the AGA strongly opposes prediction markets, there was residual intrigue throughout the conference in how the product and its popularity may be legalized under gaming laws.
Miller claimed that “illegal operators” seek to “blur the lines” by using different names for games of chance, such as contracts for athletic events, skill games, or sweepstakes. To him, it’s all about gambling.
“Why is there so much dishonesty? “It’s easy,” he said. “They want the chance, but they don’t want to comply with any regulations. These criminals aren’t playing tricks on anyone, but they truly don’t care about their concern for the general welfare.
