AGA exodus continues as OpenBet and Sportradar decline renewal

• OpenBet and Sportradar did not renew their American Gaming Association memberships in January 2026.
• The AGA cites conflict over prediction markets that bypass state sports betting regulations.
• The departure follows similar exits by DraftKings and FanDuel in November 2025.

OpenBet and Sportradar have declined to renew their memberships with the American Gaming Association (AGA) during the January 2026 annual renewal period, marking the latest defections from the trade body over disagreements regarding prediction markets.

Prediction market conflict drives supplier exodus

The AGA confirmed that both suppliers chose not to continue their memberships, citing fundamental differences over prediction markets.

Dara Cohen, Senior Director of Strategic Communications and Media Relations at the AGA, told InGame via email:

“The members who’ve departed are pursuing different paths related to prediction markets that don’t align with AGA’s core focus on protecting state and tribal authority,” Cohen wrote.

“Our priority remains defending the legal, state- and tribal-regulated gaming framework.”

This development extends a pattern of high-profile exits that began in mid-November 2025, when major operators DraftKings and FanDuel left the organisation over similar concerns.

Fanatics followed in December after launching its prediction market product. All three companies have since launched prediction market offerings.

The AGA views prediction markets as platforms that circumvent state-level sports betting regulations.

Supplier connections to departed operators

OpenBet, which supplies back-end services including risk management and geolocation to major operators, maintains partnerships with Fanatics, FanDuel, and FanDuel parent company Flutter.

Fanatics just deployed OpenBet’s complete Protect Suite across its US operations, including advanced geolocation technology and AI-enhanced responsible gaming tools, in December 2025.

Sportradar serves as the official data supplier for Major League Baseball, the NBA, NHL, PGA, and numerous other professional sports leagues. The company counts DraftKings and FanDuel among its partners. Sportradar completed its acquisition of IMG Arena from Endeavor in November 2025, expanding its data rights portfolio.

Neither supplier provided official statements regarding their departures, though the timing coincides with their major operator partners’ moves into prediction markets.

Federal versus state regulation dispute

Prediction markets, operated by platforms such as Kalshi and Polymarket, allow users to trade on event outcomes—including sports—as financial contracts regulated by the Commodity Futures Trading Commission (CFTC). These markets are legally considered derivatives rather than gambling products.

Participation in prediction markets has become contentious since Kalshi first offered sports event contracts ahead of the 2025 Super Bowl. The contracts resemble traditional sports betting but lack consumer protections mandated for state-regulated sportsbooks. They also do not pay fees or taxes to individual states.

A joint letter sent to Congress on 12th January by the AGA and Indian Gaming Association (IGA) reads:

“This growth has occurred by exploiting regulatory inaction by the Commodity Futures Trading Commission (CFTC), which undermines state law and tribal sovereignty and flies in the face of existing federal laws and regulation intended to protect consumers and the integrity of our nation’s financial markets.”

The exits appear to be pushing the AGA back towards its land-based casino roots. Since last summer, the organisation has partnered with more land-based casino companies, including tribal casinos and organisations, in support of state regulation and against federally regulated platforms.

Cohen described tribal gaming as “a valued and essential partnership for the AGA,” noting that “we’ve worked closely with tribal leaders and organisations for many years, and that collaboration has only deepened as we’ve aligned around shared priorities like consumer protection, sovereignty, and preserving a strong legal market.”

Tribal leaders initially characterised the partnership between the AGA and Indian Country as “strange bedfellows” at the Indian Gaming Association mid-year conference in September.

Whilst both states and tribes maintain comprehensive regulatory frameworks for gambling, the two groups have not historically aligned on all issues. However, over the past year, the AGA and IGA have united to lobby against what they consider illegal gambling, including sweepstakes platforms and prediction markets.

Bill Miller, AGA President, addressed the partnership and the organisation’s stance in a December letter to members.

“Our position is clear and unwavering: sports event contracts are gambling, and gambling is regulated by states and tribes,” he wrote. “In 2026, we will continue to defend this framework and uphold state authority and tribal sovereignty.”

Tech versus traditional casino divide

The departures highlight a broader industry split between technology-first companies and traditional casino operators. DraftKings, Fanatics, and FanDuel are tech-first companies, as are OpenBet and Sportradar. This differentiation has emerged as a divide in other areas beyond prediction markets.

Smaller, regional casino operators like Churchill Downs and The Cordish Companies have lobbied against tech giants DraftKings and FanDuel over the addition of online casino and sports betting in some states. A fundamental difference lies in real estate—land-based casino companies need customers to visit their locations and patronise restaurants and retail shops alongside gaming facilities.

Traditional casino companies with online products, such as BetMGM and Caesars, appear reluctant to risk regulatory violations and show limited interest in building databases through prediction markets. By contrast, DraftKings, Fanatics, and FanDuel maintain they do not fear regulatory repercussions and view expansion in non-legal gaming states as strategically paramount.

Regulatory pressure and enforcement

Some regulators have issued warnings to licence holders about involvement in prediction markets, though none has taken enforcement action. Last autumn, FanDuel surrendered its retail sports betting licence in Nevada and DraftKings withdrew an application under pressure from the Nevada Gaming Control Board.

On the operator side, the AGA membership list remained static apart from the departures of DraftKings, Fanatics, and FanDuel during the annual renewal period.

Market reaction remains mixed

Wall Street has shown mixed reactions to prediction market developments. DraftKings, which launched its prediction product on 19th December, was trading at $30.58 mid-day on Monday, compared to its 52-week high of $53.61.

FanDuel launched its product on 22nd December, and its shares have dropped 50 points since then. FanDuel was trading at $173.55 mid-day on Monday, compared to $223.97 on launch day and a 52-week high of $313.68.

Caesars and MGM Resorts International (part owner of BetMGM) have also experienced stock market declines, though both companies face challenges beyond prediction markets, including declining visitation to Las Vegas.

Industry realignment accelerates

The exits of OpenBet and Sportradar fracture what had been a unified front among sports betting stakeholders against unregulated gaming products. The AGA has positioned itself as the defender of state-regulated markets, arguing that prediction markets operating under CFTC jurisdiction undermine localised licensing systems and consumer protections.

The realignment raises questions about future advocacy efforts. With major operators and now key suppliers departing, the AGA may face challenges presenting a cohesive industry position to regulators and lawmakers.

For iGaming stakeholders, these developments signal accelerating convergence between traditional sportsbooks and federally regulated event contracts. As prediction markets gain legitimacy and market share, suppliers and operators face strategic choices about which regulatory frameworks to prioritise.

The departure of OpenBet and Sportradar suggests that technology providers see greater long-term value in prediction market infrastructure than in maintaining trade association alignment.