Caesars Entertainment (NASDAQ: CZR) and MGM Resorts International (NYSE: MGM), the two largest casino operators on the Las Vegas Strip, won’t press into the prediction market industry because such a move could jeopardize their gaming licenses in the various states in which they do business.

Speaking at the Global Gaming Expo (G2E) in Las Vegas this week, Caesars CEO Tom Reeg and Bill Hornbuckle, his counterpart at MGM, said the prediction market juice isn’t worth the regulatory squeeze as regulators in some states, including Nevada, have warned casino and sportsbook operators that if they forge into the event contracts industry, their traditional gaming licenses could be at risk.

In his G2E address, Hornbuckle noted MGM, likely through its BetMGM joint venture , mulled getting into prediction markets in early 2025, but rapidly thought better of it based on the belief such a move could harm its core businesses.

The MGM CEO noted at the conference that the Nevada Gaming Control Board (NGCB) told the company that a move into prediction markets could affect its licensing in the state.

On the Strip, Caesars and MGM combine to run 17 integrated resorts and Caesars, which is in the process of being taken private by Fertitta Entertainment Inc. (FEI). Caesars is also a dominant operator in other Nevada markets such as Lake Tahoe/Reno and Laughlin. Said another way, a prediction market push by either company isn’t worth the risk, particularly when knowing Nevada opposes that industry.

It’s not just Nevada that Caesars and MGM would need to worry about if they entered the event contracts arena. As just one example, New Jersey is one of the other states leading legal crusades against yes/no exchanges. There, Caesars and MGM combine to run four of the nine casino hotels on the Atlantic City Boardwalk.

There are also potential vulnerabilities to operators’ iGaming and sports wagering licenses if they press into prediction markets. Arizona is an example of a state where at least one company lost a sports betting-related license due to a move into prediction markets.

By gross gaming revenue (GGR) share, BetMGM and Caesars are the third- and fifth-largest online sportsbook operators and both companies are among the most prominent names in the internet casino industry, too.