Home Legal & Compliance OpenBet and Sportradar Exit American Gaming Association Amid Prediction Market Dispute

OpenBet and Sportradar Exit American Gaming Association Amid Prediction Market Dispute

OpenBet and Sportradar Exit American Gaming Association Amid Prediction Market Dispute

OpenBet and Sportradar have ended their membership with the American Gaming Association (AGA), marking the latest high-profile departures from the industry’s main trade body as divisions deepen over the regulation of prediction markets in the United States.

According to updated AGA membership records, both companies chose not to renew their memberships during the association’s annual renewal cycle. Their exits follow earlier departures by DraftKings, FanDuel, and Fanatics in late 2025, signaling a broader realignment within the US betting and gaming sector.

Growing Rift Over Prediction Markets

The departures come amid an ongoing industry debate surrounding prediction markets, which allow users to trade contracts based on the outcomes of future events. Unlike traditional sportsbooks, these platforms are regulated by the Commodity Futures Trading Commission (CFTC) rather than state gaming authorities.

The AGA has taken a firm stance against prediction markets, arguing that they operate outside established consumer protection frameworks and bypass state-level regulatory oversight. In January, the AGA joined the Indian Gaming Association in urging Congress to restrict sports-related prediction contracts.

By contrast, several major operators and suppliers have shown increasing interest in prediction-based products, viewing them as an emerging growth opportunity within regulated financial markets.

Strategic Alignment Drives Departures

DraftKings previously cited a lack of strategic alignment with the AGA as the reason for relinquishing its membership, noting its intention to pursue prediction market initiatives. FanDuel and Fanatics followed shortly after.

OpenBet, which provides sportsbook technology and risk management tools to operators including FanDuel and Flutter Entertainment, and Sportradar, a key provider of official sports data to leagues such as the NBA, MLB, and NHL, now appear to be aligning more closely with this evolving sector.

Neither OpenBet nor Sportradar issued public statements regarding their departures.

Implications for Industry Representation

The exits significantly reduce the AGA’s representation of digital-first betting companies, reinforcing its positioning as the primary advocate for land-based casinos and legacy gaming manufacturers.

Meanwhile, the Sports Betting Alliance (SBA), which includes DraftKings, FanDuel, and Fanatics, has emerged as the dominant lobbying group for mobile wagering and online gaming interests.

As lawmakers prepare to examine prediction market regulation in 2026, the industry is expected to present competing perspectives: one defending state-regulated sports betting models, and another advocating for a federal framework under financial market oversight.

The departure of OpenBet and Sportradar highlights the growing fragmentation of the US gaming industry as new betting formats challenge existing regulatory and advocacy structures.

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