Key Points
- The American Gaming Association’s latest industry report categorizes event contracts alongside illegal operations and social casinos
- Survey data reveals 81% of industry leaders consider event contracts a significant risk to licensed gaming
- Four major operators—DraftKings, FanDuel, Fanatics, and Bet365—departed the trade organization within 12 months
- State governments across 16 jurisdictions challenged sports event contracts through various legal mechanisms in 2025
- Federal commodities regulators have initiated legal proceedings against multiple states, claiming sole authority over event contracts
The American Gaming Association has intensified its opposition to sports-related event contracts. The industry organization’s recent publications characterize these prediction platforms as existential challenges to state-regulated gaming.
The organization published its State of the States 2026 analysis earlier this week. The document groups event contracts with social gaming platforms, unregulated offshore betting sites, and unlicensed gambling ventures.
Bill Miller, who serves as the AGA’s President and CEO, stated the sector rallied to counter “the expanding challenge of event contract platforms facilitating sports wagering beyond authorized state and tribal regulatory frameworks.”
Miller further emphasized the conflict “strikes at the foundation of America’s gaming regulatory structure,” highlighting player safeguards, problem gambling initiatives, and public revenue allocation.
The analysis documented regulatory interventions across 16 jurisdictions targeting sports event contracts throughout 2025. State actions ranged from enforcement letters and litigation to formal determinations classifying such contracts as unlicensed sports wagering.
Five jurisdictions enacted prohibitions on social casino operations in 2025. California, Connecticut, Montana, New Jersey, and New York all passed restrictive legislation. Indiana and Maine implemented similar prohibitions in early 2026.
Industry Leaders Express Concerns Over Event Contract Growth
The trade association separately published its Gaming Industry Outlook Spring 2026 analysis last week. Survey responses indicated 81% of sector executives perceive event contracts as substantial threats to authorized gaming operations.
Research data showed 46% of corporate leaders cited federal oversight issues as operational constraints. This represented an increase from 29% during the third quarter of 2025.
Concurrently, 42% of survey participants identified emerging gaming alternatives as significant competitive pressures. This metric climbed from 25% in the previous quarterly assessment.
Executive feedback highlighted apprehension regarding “unlicensed and untaxed competitors” and potential damage to sector reputation.
The association calculated that unauthorized gambling activity produces approximately $53.9 billion annually. The organization estimates this deprives state governments of over $15 billion in tax collections. These projections exclude revenue losses attributed to sports event contracts through prediction platforms.
Leading Sportsbook Operators Abandon Trade Organization
As the trade group escalates its campaign against event contracts, multiple prominent former members have pursued contrary strategies. DraftKings, FanDuel, Fanatics, and Bet365 have all terminated their memberships during the previous twelve months.
FanDuel, DraftKings, and Fanatics have each launched event contract offerings. Leadership teams from DraftKings and Flutter discussed prediction platforms as customer acquisition mechanisms and expansion strategies during quarterly financial presentations.
Bet365 cited the organization’s disproportionate emphasis on land-based casino interests as its departure rationale. The operator characterized its business model as “digital-first.”
This division represents a departure from the collaborative period following the Supreme Court’s 2018 PASPA invalidation. During that era, wagering operators and the trade association maintained unified positions throughout sports betting legalization efforts.
Nationwide sports wagering expansion has also decelerated. The association’s publication observed that 2025 marked the first year since the PASPA decision without additional state legalizations. Commercial sports betting revenue nevertheless increased 22.6% annually, reaching $16.89 billion in 2025.
Jurisdictions are simultaneously increasing operator tax burdens. Illinois implemented what the organization described as an “unprecedented levy on individual mobile sports wagers” during 2025.
Federal and State Legal Conflicts Escalate
The jurisdictional dispute over event contracts continues expanding through judicial systems nationwide. Platforms including Kalshi, Robinhood, and Crypto.com have encountered state enforcement measures. These companies have simultaneously filed federal litigation asserting sports event contracts fall within the CFTC’s sole regulatory authority.
The Commodity Futures Trading Commission has independently initiated legal action against Arizona, Connecticut, Illinois, New York, and Wisconsin. The federal agency has additionally filed supporting briefs in proceedings across Nevada, Massachusetts, and Ohio.
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