Adam Greenblatt, BetMGM CEO, has shown no concern for prediction markets during the company’s Q3 call.
With the Commodity Futures Trading Commission (CFTC) declaring casino-style gambling products are not derivatives, the CEO was asked whether prediction markets posed a risk.
While acknowledging the risk is still there, Greenblatt pointed out that prediction markets will try to find another way to circumvent definitions, calling it “cosmetics in the pursuit of survival.”
However, he is looking forward to the Supreme Court ruling as he expects, and hopes, the justices will rule in favor of state regulation.
The clarification by the CFTC was announced on October 9, as the Commission issued an Interim Final Rule excluding casino-style products from the definition of “swap.”
On the same day, however, the CFTC published a Notice of Proposed Rulemaking seeking to include contracts based on sports, politics, cultural and weather-based events in the term “swaps.”
Based on this proposed rule, Kalshi filed a motion for rehearing in the Sixth Circuit court, which had previously ruled against the operator, finding it had not established that its sports event contracts fell exclusively under federal regulation.
Nevertheless, Greenblatt showed no concern for the rise of prediction markets, pointing to BetMGM’s Q3 results as a sign of its strong marketing strategy and player retention ability.
Reflecting on the highly competitive and rapidly changing environment, Greenblatt said: “In any case, we will find a way.”
Also discussed during the call was the impact of Alberta's online casino legalization. In Q3, the Canadian province accounted for 20% of total new players and 2% of all iGaming revenue.
BetMGM’s Q3 overall revenue rose 7% to $710m, with iGaming counting for $483m
