Bet365's AGA Exit: Rift Between Digital & Traditional Gambling
The gambling landscape in the United States is undergoing one of its biggest structural transformations, marked by an increasingly evident division between the old guard and technological innovators. Bet365 has become the latest major digital operator to leave the ranks of the American Gaming Association (AGA), joining a list of departures that already included heavyweights like DraftKings, FanDuel, and Fanatics. This massive withdrawal is not a coincidence, but a direct response to the association's stance on prediction markets, a vertical that is redefining growth strategies for 2026.
Bet365's official explanation points to a divergence of priorities. As an operator born in the digital environment, the British company perceives that the AGA's agenda has leaned excessively towards protecting the interests of land-based casinos and the retail sector. In a statement, the company emphasized that, while it values its industry partnerships, its focus requires alignment with partners who understand the technological nature of its business, distancing itself from an organization that seems increasingly focused on state sovereignty and land-based casinos.
"As a digital operator, Bet365 has withdrawn from the AGA due to the organization's focus on the land-based casino industry. We greatly value our industry partnerships and remain committed to working constructively with regulators," the company stated.
The rise of prediction markets as a catalyst for conflict
The definitive breaking point has been the management of event contracts or prediction markets. While the AGA, under the leadership of its CEO Bill Miller, firmly maintains that these products are a form of gambling that must be strictly regulated by states and tribes, technology operators see them as an unprecedented expansion opportunity. This difference in criteria led Fanatics to launch its own prediction offering in late 2025, quickly followed by proprietary platforms from DraftKings and FanDuel.
The tension is not limited to operators. Leading data and technology providers like Sportradar and OpenBet also allowed their AGA memberships to expire earlier this year. Carsten Koerl, CEO of Sportradar, has publicly identified prediction markets as a massive growth opportunity where his company is exceptionally positioned to capitalize on its premium sports rights. This exodus of providers suggests that the B2B ecosystem is also pivoting towards where innovation and future business volume lie.
The resistance of traditional brands and the future of Bet365
While technology-based platforms like Underdog and PrizePicks are fully embracing prediction markets (even foregoing traditional betting licenses to facilitate the transition), legacy brands like BetMGM, Caesars, and MGM are staying on the sidelines. For these operators, who have deep roots in real estate and land-based casinos, entering event contracts represents a direct conflict with the regulatory model they have defended for decades.
Although Bet365 has not yet formally applied for approval to operate prediction markets with the National Futures Association (NFA), industry analysts agree that its departure from the AGA is a prelude to a strategic move in that direction. With a limited physical presence in the United States, Bet365's commitment to a purely digital model gives it the agility needed to explore partnerships or acquisitions that will allow it to integrate this new vertical, consolidating its profile as a cutting-edge technology company in a market that is no longer content with conventional sports betting.
Tags: United States, USA, AGA, Bet365, prediction markets