Fanatics Ditches US Trade Body Over Prediction Markets

Fanatics Ditches US Trade Body Over Prediction Markets

Key Points From the Dispute

  • Fanatics quit AGA over “a difference in opinion” on prediction markets
  • Fanatics exec said the choice to quit AGA “not a decision that we took lightly”
  • DraftKings, FanDuel also ditched AGA in order to pursue prediction markets

Fanatics Confirms AGA Exit

Fanatics has resigned its AGA membership over prediction markets.

Prediction markets continue to sow division in the US gambling industry, and now another leading sportsbook has resigned its trade membership over the vertical.

According to reports, Fanatics Betting and Gaming chose to resign its membership from the American Gaming Association (AGA) last week, citing irreconcilable differences over prediction markets.

Fanatics Vice President of Communications Kevin Hennessy stated that while his firm respects the work the trade body does for the regulated industry, “we have a difference of opinion on what that means when it comes to prediction markets.”

Hennessy added: “This was not a decision that we took lightly.”

AGA Response and Product Rollout

An AGA spokesperson has also confirmed Fanatics relinquished its membership and that the body had “scrubbed the online sportsbook’s name from its membership list.” Fanatics rolled out its prediction market product last week in ten states via a partnership with Crypto.com.

Coalition for Prediction Markets and Industry Alliances

Crypto.com also last week joined the Washington, DC-based Coalition for Prediction Markets (CPM) along with other big names including Kalshi, Robinhood, Coinbase, and Underdog. The CPM is seeking “to promote and defend their political interests amid a growing fight over sports betting.”

Fanatics Follows DraftKings and FanDuel

The Fanatics departure follows that of FanDuel and DraftKings, who both resigned their memberships with the trade body last month over the contentious vertical.

The AGA has made its position on prediction markets crystal clear, including through a social media ad campaign declaring “it’s still sports betting.”