OpenBet and Sportradar have become the latest companies to withdraw from the American Gaming Association (AGA), adding to a growing list of high-profile exits tied to disagreements over prediction markets. While neither company issued a public statement explaining the decision, the underlying cause is widely understood within the industry.
AGA Senior Director of Strategic Communications Dara Cohen confirmed to InGame that the dispute over prediction markets sits at the core of the recent departures.
Five Major Exits in Just Three Months
The trend began late last year, when DraftKings and FanDuel both exited the AGA in November. Their departures raised eyebrows, but the momentum accelerated weeks later when Fanatics followed suit.
Fanatics’ withdrawal came just days after the company announced its own prediction market platform. On December 3, Fanatics launched Fanatics Markets. Within a week, its name had been removed from the AGA’s membership roster.
Confirming the move, Fanatics Betting and Gaming Vice President of Communications Kevin Hennessy said the decision was driven by a fundamental policy disagreement.
“Fanatics Betting and Gaming has elected to withdraw its membership from the American Gaming Association,” Hennessy said. “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.”
AGA Holds Firm Against Prediction Markets
Following the wave of departures, the AGA doubled down on its opposition. In January, it joined forces with the Indian Gaming Association (IGA) to issue a joint letter to Congress. The letter warned that prediction markets were effectively offering sports betting under a different label.
The groups argued that the Commodity Futures Trading Commission’s lack of decisive enforcement has allowed prediction market platforms to expand nationwide without state-level approval. According to the letter, this loophole undermines state regulatory authority. It also weakens tribal sovereignty and bypasses consumer protection safeguards.
The AGA and IGA emphasized the scale of the regulated gaming industry. They noted that together they represent a sector generating $329 billion in annual economic impact, producing $53 billion in tax revenue, and supporting 1.8 million jobs across the United States.
Legal Momentum Begins to Shift
For much of last year, prediction market operators found success in court by arguing that CFTC oversight allowed them to operate nationwide. That stance helped platforms like Kalshi grow rapidly despite mounting resistance from state regulators.
However, the legal tide may be turning. On January 20, a Massachusetts judge ruled in favor of the state, blocking Kalshi from offering sports-related contracts without a sports betting license. The court rejected claims that federal commodities law overrides state gambling regulations.
New Jersey and Ohio regulators have since cited the Massachusetts ruling in their own legal challenges. This signals a broader shift as states intensify efforts to rein in prediction markets.
