Bet365 Becomes Latest to Leave the Sports Betting Alliance

The American Gaming Association just got a little bit smaller.

The gaming advocacy group has confirmed rumors that bet365 has decided to resign its membership. The operator’s branding has been removed from the AGA’s site, and is no longer listed among the members. 

The operator is the fourth sportsbook to exit the group over the last year, joining industry leaders DraftKings, Fanatics, and FanDuel. The trio exited the AGA after deciding to offer sports-event contracts, also known as prediction markets. 

The prediction industry has emerged as a rival to regulated sports betting, leading to a massive conflict of interest within the group. 

Bet365 and the AGA have been silent about their split, but that hasn’t stopped speculation that the operator plans to offer sports contracts. The bet365 Sportsbook has been successful in the US, but that could change as the rival industry grows.

Unlike other gambling groups, such as the Sports Betting Alliance, the AGA’s membership includes a wide range of retail and mobile gambling operators. While this has increased the group's influence, it has also made it far more difficult to keep members happy.

As much as the AGA would have liked to keep its largest members, the overwhelming majority of its members view the prediction industry as a threat. They decided to protect those members by adding a special section on their website about sports event contracts that shows the damage the industry is causing.

What Are Sportsbooks Seeing That We Aren’t?

It’s easy to understand the appeal of predictions for mobile sportsbooks. The industry isn’t considered a form of gambling, meaning it isn't subject to the same state regulations and taxes as sportsbooks. This means operators keep more of their profits while avoiding dealing with regulators.

However, the tide has been turning against the prediction industry. Almost 40 US markets have taken a public stance against it, with many choosing to fight operators like Kalshi and Polymarket in court. 

The US Senate is also set to vote on a bipartisan bill that would place a full federal ban on sports contracts. While it faces long odds of passing, the message it sends is clear to the industry and its supporters.

Despite the growing opposition, sportsbooks continue to invest in the prediction space. If bet365 decides to launch now, it would lead us to question if the industry knows that the public doesn’t.