AGA Faces Challenges as Major Operators Exit Over Prediction Markets
- 81% of gaming executives view prediction markets as a “very significant” threat to the regulated gaming industry.
- Four major operators—Draftkings, Fanduel, Fanatics, and bet365—have exited the AGA in six months due to differences over prediction markets.
- The Senate Commerce Subcommittee will hold its first hearing on prediction markets on May 20.
- Kalshi and Polymarket have increased their lobbying efforts, spending $615,000 and $360,000 respectively in federal lobbying in the past year.
- The Coalition for Prediction Markets includes members like Coinbase and Crypto.com, indicating a new constituency in US gambling lobbying.
The American Gaming Association (AGA) is experiencing significant changes as major operators exit due to disagreements over prediction markets’ role in sports wagering. This shift has led to a more crowded lobbying landscape with new alliances forming around prediction market regulations.
With the upcoming Senate hearing on May 20, the altered lobbying dynamics will be tested publicly for the first time without key online sportsbook members backing the AGA’s stance against prediction markets. (Source)
