AGA loses more members as rift over prediction markets deepens

The American Gaming Association (AGA) has lost two more members as divisions deepen within the U.S. gambling industry over the rise of prediction markets, according to a review of its membership list ahead of annual renewals.

Sportsbook technology providers OpenBet and Sportradar did not renew their AGA memberships this month, following earlier exits by DraftKings, FanDuel, and Fanatics, all of which have launched or announced plans to offer prediction market products. Neither OpenBet nor Sportradar have yet disclosed the reasons for their decision.

The departures underscore a growing split between tech-focused betting companies and the AGA, which has taken a firm stance against prediction markets that allow users to trade contracts tied to sports outcomes. The markets are regulated at the federal level by the Commodity Futures Trading Commission (CFTC) and are legally classified as derivatives.

The AGA argues that such products closely resemble sports betting but operate outside state-based regulatory systems, avoiding consumer protection rules, integrity requirements, and state taxes that licensed sportsbooks must follow.

“The members who’ve departed are pursuing different paths related to prediction markets that don’t align with AGA’s core focus on protecting state and tribal authority,” Dara Cohen, the AGA’s senior director for strategic communications and media relations, said in an emailed statement to InGame. “Our priority remains defending the legal, state- and tribal-regulated gaming framework.”

DraftKings went live with its prediction market product on Dec. 19. FanDuel initially launched its prediction market on Dec. 22 in five states before expanding the offering nationwide in January. Fanatics has also entered the space. All three companies are no longer members of the AGA.

As some of its largest online members leave, the AGA has moved closer to land-based casino operators and tribal gaming groups, which have also opposed federally regulated sports event contracts. Since last year, the association has increased its coordination with tribal organizations to lobby against what they describe as unregulated gambling.

In January, the AGA and the Indian Gaming Association sent a joint letter to Congress warning that prediction markets “undermine state law and tribal sovereignty” and conflict with federal laws designed to protect consumers and financial market integrity. 

AGA President Bill Miller also reinforced that position in a December letter to members, writing that sports event contracts constitute gambling and should remain under state and tribal regulation.

“Our position is clear and unwavering: sports event contracts are gambling, and gambling is regulated by states and tribes,” Miller wrote. “In 2026, we will continue to defend this framework and uphold state authority and tribal sovereignty.”

The dispute reflects a broader divide within the industry. Tech-first companies have increasingly embraced prediction markets as a way to build customer databases, particularly in states where online sports betting remains illegal. Traditional casino operators, whose businesses depend on physical venues, have shown greater caution.

Large casino groups with online betting arms, including Caesars and BetMGM, have so far avoided prediction markets, amid concerns about regulatory scrutiny. Some regulators have issued warnings to license holders, though no enforcement actions have been taken.

Last year, FanDuel surrendered its retail sports betting license in Nevada, while DraftKings withdrew a separate application following pressure from state regulators.

Investor response to prediction markets has been muted. Shares of DraftKings and FanDuel remain well below their 52-week highs despite launching prediction products late last year. Casino operators, including Caesars and MGM Resorts, have also seen share price declines, though analysts say those moves reflect broader pressures such as slowing Las Vegas visitation rather than prediction markets alone.