DraftKings’ Claim That It Operates in All States Raises Eyebrows
DraftKings’ 50-State Claim Draws Scrutiny Over Nevada Troubles
American gambling giant DraftKings continues to advertise that it operates in all 50 U.S. states, even as it faces regulatory pushback in Nevada. A closer look reveals the situation is more nuanced than the company’s marketing suggests.
DraftKings Does Not Offer Traditional Sports Betting in Every State
The Las Vegas Review-Journal recently reported on DraftKings’ ongoing claims. The sports betting powerhouse continues to run advertisements stating it operates nationwide, including new spots aired during the Little League World Series over the weekend. However, the company recently withdrew its sports betting licenses in Nevada amid a dispute linked to its prediction markets business.
While DraftKings has no sportsbook or online betting presence in Nevada, it clarified that it does offer DraftKings Predictions within the state—and in 47 others, including Hawaii and Utah. Notably, both Hawaii and Utah prohibit all forms of gambling. DraftKings Predictions, like other event-contract platforms such as Kalshi, does not classify itself as a sports betting operator. Instead, it allows users to buy yes-or-no shares on the outcome of events, including sporting contests.
The Legal Gray Area of Prediction Markets
Whether such prediction-based products qualify as sports betting has become a major legal battleground. Nevada’s Gaming Control Board has been locked in a prolonged legal fight with Kalshi for months, arguing that these contracts are indeed gambling under state law, regardless of the platform’s position. The 9th Circuit Court of Appeals recently sided with Nevada regulators, affirming their authority to oversee Kalshi’s operations—even though prediction markets fall under the federal Commodity Futures Trading Commission’s jurisdiction.
That ruling conflicts with an earlier decision in New Jersey, where a court held that the state cannot regulate Kalshi. New Jersey may still appeal that verdict, and many legal experts believe the question will ultimately reach the U.S. Supreme Court.
Regulators Warned DraftKings Against Bypassing the Rules
The Las Vegas Review-Journal also reached out to DraftKings for comment on its latest ads, but the company had not responded by the time of publication. As previously reported, DraftKings voluntarily withdrew its sports betting license applications in Nevada. However, state gaming officials noted that the company does not intend to leave the state unserved—instead, they believe DraftKings plans to target Nevada with what the board calls “unlawful activities related to sports event contracts.”
Officials characterized this behavior as incompatible with Nevada’s regulated gaming industry. They warned DraftKings directly that its prediction market activity is unlawful in the state and could lead to legal consequences.
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