Sports-Betting Firms See State License Risk in Prediction Market

Sportsbook operators are treading cautiously in the fast-growing business of prediction-based betting, unsure of the financial opportunity and wary of threats by regulators to revoke their gambling licenses.

Caesars Entertainment Inc., which owns some 50 casinos across the US, as well as a large online betting business, told investors this week it’s monitoring the predictions market, but not immediately entering the business.

“We will not put any of our licenses at risk,” Chief Executive Officer Tom Reeg said on an Oct. 28 conference call.

MGM Resorts International CEO Bill Hornbuckle echoed those comments the following day.

“For decades, the ...