Rift Between AGA and Sportsbooks Grows, as Bet365 Quits

The American Gaming Association (AGA) has been silently shedding members at a time when the trade group and the industry face pressure from all sides.

The offshore gambling market is chugging along, sweepstakes casinos have taken a battering, but are holding on, and notably, the prediction market sector has surged to threaten the interests of traditional sportsbook businesses.

The Clash Between Traditional Businesses and Prediction Markets

Interestingly, though, it’s that last point that has caused the rift between the AGA and its members, with DraftKings, FanDuel, Fanatics Betting & Gaming, and now bet365 quitting the organization. 

While no party has commented openly on their decision in so many words, the fact remains that AGA’s antagonistic stance towards the prediction market has coincided with an expressed interest by sports betting giants in the sector.

DraftKings and FanDuel handed over their licenses in Nevada to pursue their prediction market ambitions elsewhere, launching a dedicated platform each, with Fanatics following in those same footsteps.

This naturally begs the question: Is Bet365 looking to launch a prediction market platform of its own? The likelihood exists, but there have been no official signs just yet, with bet365 not registered with the National Futures Association, for one, nor having filed an application to be. 

But even if bet365 is still testing the waters, this does not mean that the company is not going to launch in the space. Prediction markets are largely seen as the next business opportunity for sports betting businesses, with both DraftKings and FanDuel remaining fairly optimistic about their future. 

The companies have expressed guarded skepticism that the prediction market platforms would end up cannibalizing the sports betting sector, arguing that they are a separate vertical.

In the meantime, state regulators, attorneys general, and members of Congress have pressed on with moves against the sector.