Fanatics exits AGA after launching prediction market platform
Fanatics has joined FanDuel and DraftKings in entering prediction markets and leaving the American Gaming Association (AGA). An AGA spokesperson told SiGMA News that Fanatics relinquished its membership last week. The company launched Fanatics Markets on 3 December 2025 and withdrew from the AGA a week later due to disputes over prediction markets. The departure mirrors that of FanDuel and DraftKings in November.
Through its acquisition of Paragon Global Markets, which is connected to infrastructure registered with the CFTC, Fanatics obtained regulatory approval and is expanding access in other states. According to the AGA, sports prediction markets circumvent state regulation, reduce tax compliance and weaken consumer protections.
Fanatics exits AGA
Fanatics launched its prediction‑market product, Fanatics Markets, on 3 December 2025, linking users to Crypto.com’s trading infrastructure. Within a week, the company ended its membership of the AGA, citing differences over prediction markets. The AGA confirmed the withdrawal. On the platform, users buy and sell event contracts that settle based on real‑world outcomes. These contracts trade at prices reflecting probability and can be entered or exited before settlement. Unlike traditional sportsbook bets with fixed odds and payouts, the model functions more like a financial exchange.
A central point of contention is whether state gaming laws or federal commodities regulation should apply to prediction‑market platforms. While the AGA argues that this bypasses state regulation, tax policy and consumer safeguards, many platforms operate under Commodity Futures Trading Commission (CFTC) rules. Operators maintain that CFTC oversight provides a nationwide framework and enables entry into jurisdictions where sportsbooks are not permitted.
DraftKings and FanDuel exit AGA
Due to disagreements about prediction markets and sports event contracts, FanDuel and DraftKings resigned from the AGA on 18–19 November 2025. Their decisions highlighted a widening divide in American gaming and foreshadowed Fanatics’ subsequent move.
Prediction markets provide major operators with access to federally supervised venues in states where betting is not legal, offer simple entry points for casual users through Yes/No contracts, allow continuous engagement beyond conventional point spreads, and generate data signals useful for customer targeting. The AGA warns that shifting operations to federal venues may reduce state tax revenue and weaken consumer protections compared with sportsbook regulations.
AGA’s position
The AGA argues that sports event contracts bypass state gambling laws, potentially undermining integrity standards, responsible‑gaming measures and taxation agreements with states and tribes. Its public statements describe prediction markets as avoiding state regulation and voter mandates. The AGA highlighted possible state revenue losses linked to prediction‑market activity in recent legislative sessions such as NCLGS and urged lawmakers to oppose expansion. Its position is that state‑regulated betting systems should continue to govern sports.
Competitive landscape and growing split
Major brands with extensive land‑based operations, including Caesars, MGM Resorts International and PENN Entertainment, have not entered sports‑linked prediction markets. Their regulatory ties, tax agreements and responsible‑gaming frameworks are built on state oversight, and adopting a federal model could complicate those relationships.
While some companies have left the AGA, they remain aligned through the Sports Betting Alliance (SBA) with operators such as bet365 and BetMGM. The SBA recently appointed a former AGA senior vice‑president to a leadership role, signalling a shift in focus towards digital priorities and federal regulatory issues.
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