On November 18, two prominent sports wagering and fantasy sports operators announced that they are leaving the American Gaming Association (AGA). The AGA is the leading trade group for casinos, gaming manufacturers, and sportsbooks. The split follows the AGA’s recent announcement of its firm stance against “prediction markets” and a forthcoming resolution to exclude companies that offer them. Prediction markets include platforms that allow individuals to trade on the outcomes of future events — whether sports-related or not.

The operators’ departures are tied to the AGA’s position that companies entering the prediction market space are doing so to bypass state regulation of sports wagering, including in states where sports wagering is otherwise prohibited. In announcing the split, AGA stated that it wishes the departing operators the best and that it expects “to maintain close ties to [its] mission to promote and protect legal, regulated gaming.”

The AGA’s announcement and the operator’s subsequent move have the potential to reshape industry alliances. For many years, licensed operators have presented a united front opposing what they characterize as forms of unlicensed gaming, including sweepstakes casinos, offshore sportsbooks, and skill games. These sports wagering operators’ departure from the AGA may suggest that the alliance is unraveling. Participants in the gaming industry and regulators will be closely watching as this realignment plays out.