The Divide Between AGA and Sportsbooks Deepens as Bet365 Leaves

(AsiaGameHub) –   The American Gaming Association (AGA) has seen a decline in its membership at a time when the trade group and the industry are facing pressure from multiple fronts.

The offshore gambling market continues to operate, sweepstakes casinos have faced challenges but are persisting, and significantly, the prediction market sector has experienced substantial growth, posing a threat to the interests of traditional sportsbook businesses.

The Clash Between Traditional Businesses and Prediction Markets

Interestingly, it is this latter development that has led to a division between the AGA and its members, with DraftKings, FanDuel, Fanatics Betting & Gaming, and now bet365 withdrawing from the organization. 

While no party has publicly detailed their reasons, the fact remains that the AGA’s adversarial stance towards prediction markets has coincided with a stated interest in the sector by major sports betting companies.

DraftKings and FanDuel relinquished their licenses in Nevada to focus on their prediction market endeavors elsewhere, each launching a dedicated platform, with Fanatics subsequently following suit.

This naturally raises the question: Is Bet365 planning to launch its own prediction market platform? The possibility exists, though there have been no official indications thus far, with bet365 not being registered with the National Futures Association, for example, nor having submitted an application to do so. 

However, even if bet365 is still exploring the option, this does not preclude the company from eventually entering the space. Prediction markets are widely regarded as the next significant business opportunity for sports betting companies, with both DraftKings and FanDuel maintaining a generally optimistic outlook for their future in this area.

These companies have expressed cautious skepticism that prediction market platforms would ultimately undermine the sports betting sector, asserting that they represent a distinct market segment.

Meanwhile, state regulators, attorneys general, and members of Congress have continued to pursue actions against the sector.