Digital-First Operators Exit AGA
Bet365 has become the latest major sportsbook operator to withdraw from the American Gaming Association (AGA). The company joins DraftKings, FanDuel, and Fanatics Betting & Gaming in a wave of departures over the past six months. These exits highlight a growing divide in the gaming industry between tech-focused platforms and traditional casino operators, including Caesars and MGM. The split is largely driven by emerging opportunities in prediction markets. Additionally, differing strategic priorities play a role. Notably, Bet365 is leading this departure.
Bet365 Cites Retail Casino Focus
On March 24, 2026, a Bet365 spokesperson explained the departure: “As a digital-first operator, Bet365 has pulled back from the AGA due to the organization’s focus on the retail casino industry.” Unlike previous exits, Bet365 emphasized that its concern was the AGA’s land-based casino orientation rather than prediction markets. The operator, headquartered in the UK, maintains live sportsbooks across multiple U.S. states, Ontario, Europe, and Brazil. However, it has minimal land-based exposure.
Prediction Markets Fuel Industry Exodus
The trend began in November when DraftKings and FanDuel resigned over the AGA’s stance on prediction markets. DraftKings acquired Railbird to offer event contracts. Meanwhile, FanDuel launched FanDuel Predicts with CME, focusing on states without legal sports betting. Fanatics followed with its own prediction market offering. Daily fantasy sports operators, including PrizePicks and Underdog, also shifted toward prediction markets. This shift underscores a strategic move away from traditional AGA-aligned platforms. In this context, Bet365 continues to influence the evolving gaming industry landscape.
AGA Faces Membership Challenges
Even sportsbook technology providers such as OpenBet and Sportradar did not renew memberships, leaving the AGA with an unprecedented exodus. The organization is closely aligned with land-based casinos and tribal gaming groups. It has warned that prediction markets could conflict with state laws and federal consumer protections. Despite the departures, companies like BetMGM continue to maintain selective membership. Bet365’s decisions highlight the ongoing challenges facing the AGA’s membership landscape.
Market and Investor Response
Investor reaction to prediction markets has been muted. Shares of DraftKings and FanDuel remain below 52-week highs despite launching prediction products. Meanwhile, casino operators, including Caesars and MGM Resorts, face broader pressures impacting stock performance. Analysts note that Bet365, alongside other industry leaders, plays a role in shaping responses as strategies evolve.
