Flutter and DraftKings will both withdraw from the state of Nevada to offer prediction markets across the US.
Mike Dreitzer, Nevada Gaming Control Board Chairman, sent out an email confirming the details.
Flutter Entertainment had surrendered its licenses and approvals for FanDuel Sportsbooks and its license as a provider of an information service. The operator also withdrew all active and pending applications in the state.
DraftKings withdrew all pending applications relative to offering sports wagering in Nevada.
Dreitzer continued: "It has been made clear to the Board that Flutter Entertainment/FanDuel and DraftKings intend to engage in unlawful activities related to sports event contracts.
"This conduct is incompatible with their ability to participate in Nevada's gaming industry."
The regulator continued that if any Nevada licensee chooses to offer sports event contracts or partner with other entities offering sports event contracts in the state, then this could affect their suitability to hold a gaming licence.
Even if a regulator does not offer sports events contracts or wagers in Nevada, but they offer prediction markets in other states "without complying with the other state's restrictions or licensing regime" or "acts in violation of a compacted tribal right", then the regulator explained that the licensee could be acting against the Gaming Control Act.
Finally, Dreitzer concluded: "Engaging in unlawful sports wagering in another state or entering into a business relationship with another entity offering unlawful sports wagering in another state may call into question the good character, integrity, and associations of the licensee.
"The Board may take administrative action or enforcement action against any licensee that pursues illegal sports betting in this manner.
"Further, the Board will consider any such conduct when evaluating suitability for new applications filed pursuant to the Gaming Control Act."
While Nevada has been the most vocal in its opposition against prediction markets, Flutter and DraftKings have set an interesting example by withdrawing from regulated markets to offer a controversial product.
It remains to be seen whether other US regulators will follow suit in regards to the matter.
Nevada Gaming Control Board member and retired judge, George Assad, recently commented on sports events contracts circumventing sports gambling laws: "So just as a word to the wise out there: You can put lipstick on a pig, but it's still going to be a pig"
