Senators Push to Ban Sports Prediction Markets Amid Insider Trading Concerns
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy MGM?
Source: CNBC
- Legislative Proposal: Senators Adam Schiff and John Curtis introduced the Prediction Markets are Gambling Act, aiming to transfer regulatory control of sports betting and casino-style games to states rather than federal agencies, which could significantly alter the existing market structure.
- Insufficient Self-Regulation: Despite Kalshi and Polymarket announcing new rules to restrict relevant individuals from betting on their platforms, Schiff argues that these measures are inadequate, emphasizing the need for stricter oversight to prevent insider trading and market manipulation.
- Market Risk Warning: Schiff cautioned that current regulations fail to effectively address the potential risks of insider trading, particularly with the application of blockchain technology, which could lead to unregulated gambling activities that undermine market fairness.
- Economic Impact Analysis: Research from the Federal Reserve Bank of New York indicates that while only about 3% of the population engages in sports betting post-legalization, overall credit delinquency rises by 0.3 percentage points, highlighting the potential negative impact of widespread gambling on household financial stability.
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Analyst Views on MGM
Wall Street analysts forecast MGM stock price to rise
14 Analyst Rating
5 Buy
7 Hold
2 Sell
Hold
Current: 37.110
Low
29.00
Averages
40.31
High
56.00
Current: 37.110
Low
29.00
Averages
40.31
High
56.00
About MGM
MGM Resorts International is a global gaming and entertainment company with national and international locations featuring hotels and casinos, meetings and conference spaces, live and theatrical entertainment experiences, and a range of restaurant, nightlife and retail offerings. The Company’s segments include Las Vegas Strip Resorts, Regional Operations, MGM China, and MGM Digital. The Las Vegas Strip Resorts segment consists of Aria, Bellagio, The Cosmopolitan of Las Vegas, MGM Grand Las Vegas, Mandalay Bay, Luxor, New York-New York, Excalibur, and Park MGM. The Regional Operations segment consists of MGM Grand Detroit in Detroit, Michigan; Beau Rivage in Biloxi, Mississippi; Gold Strike Tunica in Tunica; Borgata in Atlantic City, New Jersey; MGM National Harbor in Prince George’s County, Maryland; MGM Springfield in Springfield, Massachusetts; Empire City in Yonkers, New York, and others. MGM Digital is its online gaming portfolio which is primarily comprised of LeoVegas.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
MGM Launches All-Inclusive Las Vegas Package
- All-Inclusive Package Launch: MGM Resorts has announced an all-inclusive Las Vegas package that includes a two-night stay at Luxor or Excalibur, six meals, two show tickets, two Big Apple Coaster rides, and self-parking for one vehicle, aimed at simplifying guest spending experiences.
- Dynamic Pricing Strategy: The package is available for immediate booking for stays starting April 6, utilizing dynamic pricing with no blackout dates, and is sold directly through MGM channels, avoiding intermediary fees from online travel agencies.
- Addressing Tourism Decline: In response to a 3.1 million drop in Las Vegas visitors in 2025, MGM aims to attract more guests and improve midweek business performance through this package, addressing affordability concerns among tourists.
- Positive Market Response: Despite tourism challenges, MGM's stock has risen 1.8% year-to-date and is up 16% from a year ago, with analysts maintaining a Buy rating on the stock, reflecting confidence in its long-term growth potential.
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Senators Push to Ban Sports Prediction Markets Amid Insider Trading Concerns
- Legislative Proposal: Senators Adam Schiff and John Curtis introduced the Prediction Markets are Gambling Act, aiming to transfer regulatory control of sports betting and casino-style games to states rather than federal agencies, which could significantly alter the existing market structure.
- Insufficient Self-Regulation: Despite Kalshi and Polymarket announcing new rules to restrict relevant individuals from betting on their platforms, Schiff argues that these measures are inadequate, emphasizing the need for stricter oversight to prevent insider trading and market manipulation.
- Market Risk Warning: Schiff cautioned that current regulations fail to effectively address the potential risks of insider trading, particularly with the application of blockchain technology, which could lead to unregulated gambling activities that undermine market fairness.
- Economic Impact Analysis: Research from the Federal Reserve Bank of New York indicates that while only about 3% of the population engages in sports betting post-legalization, overall credit delinquency rises by 0.3 percentage points, highlighting the potential negative impact of widespread gambling on household financial stability.
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- Airline Sector Recovery: Delta Air Lines saw its stock rise nearly 4% on Monday, recovering from an initial drop of over 10% at the onset of the Iran war, indicating market optimism about travel demand as energy costs decrease, highlighting the airline industry's sensitivity to oil price fluctuations.
- Luxury Market Rebound: Tapestry, the parent company of Kate Spade and Coach, jumped more than 4% on Monday after a 9% decline since the Middle East conflict began, reflecting a potential easing of concerns regarding consumer spending and rising energy costs, which could boost demand for affordable luxury goods.
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MGM Launches All-Inclusive Las Vegas Package
- All-Inclusive Package Launch: MGM Resorts has announced an all-inclusive Las Vegas package that includes a two-night stay at Luxor or Excalibur, six meals, two show tickets, two Big Apple Coaster rides, and self-parking for one vehicle, aimed at simplifying guest spending experiences.
- Dynamic Pricing Strategy: The package is available for immediate booking for stays starting April 6, utilizing dynamic pricing with no blackout dates, and is sold directly through MGM channels, avoiding intermediary fees from online travel agencies.
- Addressing Tourism Decline: In response to a 3.1 million drop in Las Vegas visitors in 2025, MGM aims to attract more guests and improve midweek business performance through this package, addressing affordability concerns among tourists.
- Positive Market Response: Despite tourism challenges, MGM's stock has risen 1.8% year-to-date and is up 16% from a year ago, with analysts maintaining a Buy rating on the stock, reflecting confidence in its long-term growth potential.
See More
Senators Push to Ban Sports Prediction Markets Amid Insider Trading Concerns
- Legislative Proposal: Senators Adam Schiff and John Curtis introduced the Prediction Markets are Gambling Act, aiming to transfer regulatory control of sports betting and casino-style games to states rather than federal agencies, which could significantly alter the existing market structure.
- Insufficient Self-Regulation: Despite Kalshi and Polymarket announcing new rules to restrict relevant individuals from betting on their platforms, Schiff argues that these measures are inadequate, emphasizing the need for stricter oversight to prevent insider trading and market manipulation.
- Market Risk Warning: Schiff cautioned that current regulations fail to effectively address the potential risks of insider trading, particularly with the application of blockchain technology, which could lead to unregulated gambling activities that undermine market fairness.
- Economic Impact Analysis: Research from the Federal Reserve Bank of New York indicates that while only about 3% of the population engages in sports betting post-legalization, overall credit delinquency rises by 0.3 percentage points, highlighting the potential negative impact of widespread gambling on household financial stability.
See More
Investor Stephanie Link Highlights Truist Financial Amid Market Rebound
- Market Rebound: Following President Trump's indication of 'productive' talks between the U.S. and Iran, equities broadly rose on Monday, with the Dow Jones Industrial Average surging over 1,100 points, reflecting a significant shift in market sentiment.
- Truist Financial: Investment strategist Stephanie Link highlighted Truist Financial as a strong buy despite its over 8% decline in 2026, citing the new management team and a strategy aimed at achieving 15% and 16% profit growth in the next two years.
- Attractive Valuation: Link emphasized that Truist is currently trading at 0.9 times its book value, noting that historically, buying banks below book value is a sound strategy, and she anticipates increased buybacks and dividends in the near future.
- Las Vegas Sands: Despite legislative risks, Link maintains her position in Las Vegas Sands, asserting that the company is performing well in Macau and Singapore, and is poised to benefit from the rising power demand for AI data centers.
See More
DraftKings and Flutter Shares Surge Following New Legislation to Prohibit Sports Betting via Prediction Markets
- Gambling Stocks Performance: Gambling stocks experienced an increase in trading on Monday morning.
- Legislative Action: U.S. senators have introduced a bill aimed at banning sports bets through prediction markets.
See More
Lower Energy Prices Could Benefit Multiple Companies
- Energy Price Impact: According to JPMorgan, a decline in energy prices could benefit industrial and retail companies like Boeing, Costco, and Allstate, especially after President Trump announced “productive” talks with Iran, leading to a more than 7% drop in West Texas Intermediate futures on Monday.
- Airline Sector Recovery: Delta Air Lines saw its stock rise nearly 4% on Monday, recovering from an initial drop of over 10% at the onset of the Iran war, indicating market optimism about travel demand as energy costs decrease, highlighting the airline industry's sensitivity to oil price fluctuations.
- Luxury Market Rebound: Tapestry, the parent company of Kate Spade and Coach, jumped more than 4% on Monday after a 9% decline since the Middle East conflict began, reflecting a potential easing of concerns regarding consumer spending and rising energy costs, which could boost demand for affordable luxury goods.
- Hotel Industry Optimism: Las Vegas Sands added over 3% on Monday, in line with other hotel companies, as investor confidence grew amid optimism that an economic downturn could be avoided, suggesting potential gains for the hospitality sector in the context of falling energy prices.
See More
Value Investors Pitch Stock Ideas at New York Conference
- CF Industries Cash Flow Advantage: Amid soaring liquid fertilizer prices due to shipping bottlenecks in the Strait of Hormuz, Jennifer Wallace from Summit Street Capital highlighted CF Industries as a structurally advantaged 'cash-flow machine,' benefiting from its exposure to globally priced fertilizers and low-cost U.S. natural gas, positioning it as one of the most profitable producers worldwide.
- Signet Jewelers Steady Cash Flow: Wallace also pointed out that Signet Jewelers is undervalued by the market, as the company generates most of its sales in North America and holds a leading share in the U.S. bridal jewelry market, which supports steady cash generation despite concerns around consumer spending.
- Investment Opportunities in Sports Stocks: Mario Gabelli of GAMCO Investors emphasized the scarcity of sports-related stocks tied to premium live content, identifying the Atlanta Braves, Madison Square Garden Sports, and Manchester United as attractive investments, particularly noting that Madison Square Garden Sports could see a 50% increase in value.
- Scotts Miracle-Gro Undervalued: John Rogers from Ariel Investments highlighted Scotts Miracle-Gro's strong brand and potential for shareholder returns, expecting the lawn-care company to rely more on share buybacks, which he believes could drive both earnings and stock price higher.
See More
