DraftKings’ “50 States” Claim Runs Into Nevada’s Prediction Markets Problem

DraftKings is still advertising that it operates in all 50 states, but Nevada regulators say the company’s Nevada exposure is now about prediction markets, not traditional sportsbook operations. For high-risk payments and gaming providers, the point is simple: the legal label on the product matters, and state regulators are paying close attention to it.

1. DraftKings ran new Little League World Series ads this weekend that repeated the 50-state claim. But the company does not have a sportsbook or online betting presence in Nevada, and it recently withdrew its sports betting licenses in the state amid prediction markets-related trouble.
2. DraftKings says it operates DraftKings Predictions in Nevada and 47 other states, including Hawaii and Utah. That detail matters because Hawaii and Utah prohibit all kinds of gaming and betting, while DraftKings Predictions says it is not a sports betting operator.
3. Like Kalshi, DraftKings Predictions is an event contracts platform where players can buy yes-no shares in the outcomes of various events, including sports. That structure has become the core legal fault line: whether these products are prediction markets or sports betting when regulators look at them.
4. Nevada’s Gaming Control Board has been fighting a prolonged legal battle with Kalshi for months, arguing that such products are gambling in Nevada despite Kalshi’s position to the contrary. The 9th Circuit Court of Appeals affirmed that Nevada gaming regulators can oversee the platform, even though prediction markets fall under the CFTC’s purview.
5. The Nevada ruling appears to conflict with an earlier New Jersey decision that said the state has no control over Kalshi, though New Jersey could still appeal. Experts believe the dispute will end up at the US Supreme Court.

The Nevada Gaming Control Board also said DraftKings does not intend to leave the state untapped and will instead target it with “unlawful activities related to sports event contracts.” The board warned that this activity is incompatible with Nevada’s regulated gaming industry and could lead to legal trouble.