Nevada sportsbooks are looking at the growth of prediction markets as a challenge that is more and more difficult to cope with.
After two state senators recently joined the growing disputes over the future of these markets, claiming that the rapidly growing sector is circumventing longstanding gambling regulations, industry executives joined forces to make even more disturbing claims.
Major platforms like Kalshi, they say, are taking business away from regulated sportsbooks. Their arguments: the declining wagering volumes across the state.
“There Has to Be an Impact”
During a meeting of the Nevada Gaming Control Board, Hall of Fame bookmaker and Boomer’s Sportsbook chief executive officer Joe Asher and Caesars Digital President Eric Hession discussed the impact of prediction markets while appearing before regulators regarding sportsbook expansion matters.
Nevada gaming regulators have argued that sports-event contracts offered by the likes of Kalshi and Polymarket constitute unlicensed sports betting, while Kalshi maintains it is operating lawfully under federal oversight.
The effects of the current state of things is, however, rather disturbing for licensed sportsbooks. According to the Nevada Gaming Control Board’s latest wagering reports, sportsbook handle has fallen throughout 2026.
In May, Nevada sportsbooks accepted $545.7 million in wagers, down 5.4% from the same month last year. April betting volume declined 15.1% year over year to $525.1 million, while March wagers dropped 11.3% to $763 million.
February’s handle didn;t look any better, recording a 4.1% drop to $579.6 million, and January was also down slightly to $795.2 million.
In total, sportsbooks handled roughly $249 million less in wagers during the first five months of 2026 compared with the same period in 2025.
During the hearing, board member George Assad asked Asher whether prediction markets were contributing to the decline.
“There has to be an impact from the prediction markets,” Asher responded, while acknowledging it is impossible to quantify exactly how much business has shifted.
First-Hand Witnesses
Asher also claimed he had personally witnessed individuals placing sports-related trades through Kalshi despite Nevada’s legal dispute with the company.
He further criticized the platform for continuing to advertise in the state, saying he recently searched for sportsbook apps in Apple’s App Store and received advertisements for Kalshi instead.
He also referenced Kalshi’s prominent advertising campaign during the Super Bowl in Las Vegas, arguing that the company has continued marketing its services despite the ongoing court proceedings.
Caesars Digital President Eric Hession echoed those concerns, saying prediction markets are almost certainly affecting sportsbook volume nationwide, even if the precise financial impact remains difficult to measure.
He went on to say that regulated sportsbooks continue to grow, but at a slower pace than in previous years, adding that prediction markets currently enjoy competitive advantages because they are not subject to the same taxes, licensing requirements, and regulatory obligations faced by traditional sportsbooks.