TLDR The AGA’s State of the States 2026 report groups prediction markets with illegal gambling operations and sweepstakes casinos 81% of gaming executives surveyed view prediction markets as a major threat to regulated gaming DraftKings, FanDuel, Fanatics, and Bet365 have all left the AGA over the past year 16 states took action against sports event contracts in 2025, including lawsuits and cease-and-desist orders The CFTC has filed lawsuits against multiple states, arguing it has exclusive jurisdiction over event contracts
The American Gaming Association is stepping up its campaign against sports prediction markets. The trade group’s latest reports paint event contracts as a direct threat to the regulated gaming industry in the United States.
The AGA released its State of the States 2026 report this week. In it, the organization placed prediction markets in the same category as sweepstakes casinos, offshore sportsbooks, and illegal gaming operations.
AGA President and CEO Bill Miller said the industry mobilized to address “the growing threat of prediction markets offering sports betting outside of established state and tribal gaming law.”
Miller also said the fight “goes to the heart of the American gaming framework,” pointing to consumer protections, responsible gaming standards, and tax revenue distribution.
The report found that 16 states took action against sports event contracts during 2025. Those actions included cease-and-desist orders, lawsuits, and regulatory opinions declaring that sports event contracts amount to unauthorized sports wagering.
Five states passed legislation in 2025 to ban sweepstakes casinos. Those states were California, Connecticut, Montana, New Jersey, and New York. Indiana and Maine followed with ban bills in 2026.
Gaming Executives Sound the Alarm on Prediction Markets
The AGA also released its Gaming Industry Outlook Spring 2026 survey last week. That report found 81% of gaming executives viewed prediction markets as a very large