Entain’s Stella David has issued a criticism of the damaging consequences of the rise of prediction markets, claiming they facilitate underage sports betting in the US.
Many states across the US require players to be 21 to gamble. However, platforms like Polymarket and Kalshi, which are federally regulated through the Commodity Futures Trading Commission (CFTC), have a minimum age requirement of 18.
Given that the platforms are currently offering markets on sports events, they are effectively bypassing state gambling laws, according to the Entain executive.
Updating investors yesterday, she stated: “Let me be clear, when people play the prediction markets in sports, it looks like a sports bet, it sounds like a sports bet, and it acts like a sports bet. I don’t think anybody should be in any doubt. It’s sports betting.
“In the US, you’ve got to be 21 to play, [but] 18 to 21-year-olds are playing prediction markets, and they’re playing prediction markets in non [online sports betting] regulated states.”
Unlike other major groups such as Flutter and DraftKings, Entain and its associated brands have been steadfast in their desire to distance themselves from the prospect of branching out into prediction markets.
Adam Greenblatt, CEO of BetMGM, Entain’s joint venture with MGM Resorts, previously stated his belief that prediction markets are operating illegally in the US.
He said: “Our position is clear and aligned with almost 40 state attorneys general, our regulators and our tribal partners. As the law stands today, sports prediction markets are, in essence, illegal sports betting.
“Prediction market operators have no requirements to protect consumers as licensed sports betting operators do. They do not uphold responsible gaming principles. They do not have self-reporting obligations for compliance failings and do not have whistleblowing and information sharing obligations.”
During the latest round of investor calls, David emphasised that Entain does not want to risk souring relationships with state regulators by seeking to gain a market share in non-regulated states through a prediction markets offering.
Outside of the US, she also predicted that there is little desire for prediction markets on sports, given the prominence of traditional sports betting. David also noted that in the UK, for example, exchanges such as Betfair have failed to gain significant market share.
“There are no structural reasons for prediction markets to be the hot topic, the flavour of the month in other markets. And indeed, in some countries, they’ve already come out and said, it’s illegal,” she said.
Overall, Entain met its market guidance for its full-year 2025 trading. However, for a third successive year, Entain declared statutory losses, reporting a £680m loss after tax – largely driven by a £488m pre-emtive impairment charge tied to the upcoming changes to the UK’s tax framework.
Overall, David emphasised that the year has been ‘a success’ for Entain. She added: “We are continuing to drive strong underlying momentum, and I am immensely proud of the strategic and operational progress we have delivered.”
Focusing on its US operations, Entain continues to throw its weight behind the BetMGM brand as its primary growth engine. The joint venture is forecast to exceed $3bn in revenue and generate EBITDA of $300–$350m in 2026, while maintaining its longer-term target of $500m EBITDA by 2027.
