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Bet365 has officially become the latest major sports betting operator to withdraw its membership from the American Gaming Association. The online sportsbook follows directly in the direction of fellow Sports Betting Alliance members DraftKings, Fanatics Betting and Gaming, and FanDuel. While the association website listed Bet365 as an active member as recently as February, the company was entirely removed from the active directory by Monday. The organization has since formally confirmed the departure.
The Prediction Market Divide
DraftKings and FanDuel notably resigned their association memberships last November after a massive philosophical divide opened between tech-first platforms and traditional land-based casinos. The central issue revolves around prediction markets and sports event contracts. The trade association has now made its strict position crystal clear: companies participating in prediction markets are no longer welcome. Fanatics followed suit and exited the group in December. At the time of their respective resignations, all three of those companies had already launched or announced concrete plans to offer prediction products.
Legacy casino brands like Caesars, MGM, and Penn Entertainment have actively chosen to avoid the prediction space entirely. On the other hand, tech-oriented wagering platforms and daily fantasy sports companies like PrizePicks and Underdog are embracing the new vertical. Underdog even surrendered its standard sports betting licenses in North Carolina after launching its prediction product, stating that prediction markets will serve as the company’s primary focus moving forward.
Differing Business Models
While both traditional casino brands and modern tech companies offer state-regulated sports betting, they have radically differing risk tolerances due to their underlying business structures.
- Traditional Casinos: These companies often hold hundreds of millions of dollars in physical assets, manage massive operational mortgages, and employ thousands of physical workers.
- Tech-First Operators: These digital platforms own virtually zero physical gaming locations and employ significantly fewer people, as nearly their entire operation exists online.
For companies like BetMGM, the situation is particularly complex. BetMGM Chief Executive Officer Adam Greenblatt openly called it a conflict for his company to remain in industry groups that also house companies offering prediction contracts. BetMGM is a joint venture between Entain and MGM Resorts, both of which serve as core, foundational members of the American Gaming Association. Ultimately, BetMGM’s decision to avoid prediction markets stems directly from a need to protect MGM’s physical land-based casino licenses. Multiple state regulators have already threatened to reconsider the operational suitability of any company that begins offering sports event contracts.
What Is Next For Bet365?
Unlike traditional brands, Bet365 carries highly limited exposure regarding land-based operations, only running retail sportsbooks at a handful of physical casinos owned by other companies. Based in the United Kingdom, the operator falls firmly into the tech-first category. It currently operates in multiple jurisdictions across the United States, alongside its presence in Ontario, Europe, and Brazil.
While Bet365 does not currently offer a betting exchange or prediction platform anywhere in the world, industry speculation suggests the company may be preparing to enter the prediction market space via a technology provider agreement or a strategic acquisition. However, the company has not yet filed for official approval with the National Futures Association.
The Association Shifts Focus
The rapid rise of prediction markets has forced an evolution within the national trade group. In January, major suppliers OpenBet and Sportradar both declined to renew their memberships. While neither company stated it explicitly, the moves likely occurred because their key clients are rapidly entering the prediction business. Consequently, the organization appears to be heavily shifting its focus back toward land-based, state-regulated, and tribal gaming.
Source: Ingame.com
