The American Gaming Association (AGA) has lost two more major members, as industry giants OpenBet and Sportradar have officially withdrawn from the trade group.
While neither company has issued a formal statement detailing their specific reasons, industry sources confirm the departures are driven by the AGA’s hardline stance against prediction markets.
A Growing Exodus
This latest wave of exits follows a trend established late last year. In November, U.S. market leaders DraftKings and FanDuel severed ties with the association. They were soon followed by Fanatics, which left just days after launching its own prediction product, Fanatics Markets.
Kevin Hennessy, Vice President of Communications at Fanatics, addressed the split at the time:
“Fanatics Betting and Gaming has elected to withdraw its membership from the American Gaming Association. While we respect the work that the AGA does for the regulated gaming market, we have a difference of opinion on what that means when it comes to prediction markets. This was not a decision that we took lightly.”
The Prediction Market Controversy
The AGA, representing the commercial casino sector, has joined forces with the Indian Gaming Association (IGA) to lobby Congress against prediction markets. In a joint letter sent in January, the groups warned that platforms offering “event contracts” are effectively running unregulated gambling operations that undermine state sovereignty and consumer protections.
They argued that the Commodity Futures Trading Commission (CFTC) has failed to adequately regulate these markets, creating a loophole for “sports betting and casino gambling under the guise of ‘event contracts.’”
Legal Battles Intensify
The dispute involving Openbet and Sportradarcomes as the legal landscape shifts. While prediction markets like Kalshi scored early court victories against the CFTC, states are now pushing back.
On January 20, a Massachusetts judge blocked Kalshi from offering sports contracts without a gaming license, rejecting the argument that federal commodities law preempts state gambling regulations. Regulators in New Jersey and Ohio are now leveraging this ruling to strengthen their own bans, signaling a prolonged legal fight ahead.
