How Is DraftKings Getting Past Nevada Gaming Laws?

DraftKings is now advertising that they're available everywhere in the U.S. How did they get past Nevada gaming laws?

[Editor's Note: This answer is proffered by our own David McKee.]

We'll tell you how DraftKings is getting by Nevada gaming laws: basically, by ignoring them. Put another way, via a clever legalistic dodge.

DraftKings withdrew its attempts to offer sports betting in Nevada, a state stubbornly resistant to the kind of online sports betting that is offered in most of the U.S. So it's hard to blame the company for that. What they did, however, is at best disingenuous.

Following the lead of the disreputable Polymarket and slightly more respectable Kalshi, DraftKings launched its own line of event contracts. Under the rubric of DraftKings Predicts, DK now offers these pseudo-wagers in all states that don’t allow online sports betting. That includes Nevada, sort of.

Here, a sports bettor must sign up in person at a licensed land-based casino and use Nevada-specific or localized apps provided by major casino operators, such as BetMGM Nevada, Caesars Sportsbook, and Circa Sports. FanDuel and DraftKings are verboten.

So. How can DraftKings offer something that is essentially illegal in the Silver State? Well, event contracts enjoy the protection of the federal Commodity Futures Trading Commission. This agency maintains a legalistic fiction that placing a wager on whether or not the Sacramento Athletics will win their next game constitutes an “economic event.” And the CFTC is quick to sue any state so bold as to clamp down on this form of betting, whose platforms claim it to be no different than speculating on pork-belly futures.

While the legality of event contracts on sports is being hashed out in federal court, companies like DraftKings can engage in this activity with some degree of impunity. That said, DraftKings’ own site maintains that only financial markets can be bet on in Nevada. They have to be careful here, as Kalshi has already been kicked out of the state for engaging in sports betting. But cross the state line into California or Utah and you can place a wager on damn near anything under the sun, much to the chagrin of those states’ governments. (Prediction markets pay no state-level taxes.)

While DraftKings is presently playing it cool in Nevada, make no mistake. Should the Supreme Court rule favorably on sports betting-via-prediction markets, as could happen in 2027, the ink won’t be dry on the opinion before sports betting in everything but name is being offered all across the Silver State. You can bet on it.

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Comments

VegasVic Jul-03-2026

Competition

Competition is always a good thing.  I have sports betting available but sometimes use Kalshi if I can get better odds on a game.  I don't bother with all the non sports stuff available, I stick to sports.  If Kalshi offers a better line they get my business.  If the sportsbook does, they get my business.

Adumb Jul-03-2026

Class C Felony in Washington

It’s is the same level felony in Washington State as “relations” with an animal. There is no way any Washington State bank would allow the money transfer and if you got caught betting online you COULD spend years in prison. It’s the same for online poker tournaments . If I were to be sitting in Moscow I would have no problem but entering a $5 poker tournament online here in Seattle - could be prison. Land of the free?

Kevin Lewis Jul-03-2026

What determines what is legal...

...is whether a certain orange felon and/or its family could profit from it. If that depends on a SCOTUS ruling, well, then, foregone conclusion, given whom they serve.

As alluded to above, the way to legalize anything is to tax it; it then becomes a public benefit. If we put a federal tax on hitmen, say, 10% of the take, then that would be lauded as a wise and judicious way to help reduce the federal deficit. So allow every conceivable form of online gambling and then tax the crap out of it. Everybody wins!!

(Somebody will reflexively complain now, OOOOH, POLITICS, but any discussion of laws and legislation is inherently political, at least until the completion of our transition into fascism.)

IdahoPat Jul-03-2026

"Competition is always a good thing," ... LOL!

It's not fair competition. The prediction markets don't pay the taxes that licensed operators do. The prediction markets skirt the barriers to entry that licensed operators are forced to traverse. The prediction markets don't have any obligation for responsible gaming that licensed operators must endure.

Prediction markets are parasites in gaming. Those of you willing to be hosts for them are beyond short-sighted. I can't wait for the CEOs and other C-suite execs to go to prison as what happened with so many in the online poker boom.

Marcus Leath Jul-03-2026

Kevin Lewis is correct

I agree with Kevin's comments in full.  He is correct here as he is with most issues upon which he comments.

I currently live in the Peoples' Republic of California where it seems almost everything is upside down.  We are held hostage here by the "tribes" so we cannot have online gambling; the brave politicians are afraid of offending the Native American criminals who run the casinos here.

asaidi Jul-03-2026

Support of the President

It helps that that "prediction" markets have the support of the President.  I believe Don Trump Jr is an "advisor" for Kalshi and/or Polymarket.

Richard Jul-03-2026

getting old kevin

if stupid political wisecracks are not in the sink, lets go. Your anger Kevin should be with your party who tried to cover up and ram through a president who clearly had early stages of dementia or alzheimers. Then coming up with Harris as the answer.Thats why people held their nose and voted for the "orange felon" and lets be real politicians from both parties and families make absurd amounts of $$ while in office.

VegasVic Jul-04-2026

IdahoPat

Not fair! Cry me a river.  LMAO.

PaulaNH Jul-04-2026

Kevin

Our transition into communism should be the final line.

Eileen Jul-05-2026

Richard

So true.

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