AGA reports that the NFL betting handle has stagnated, pointing to prediction markets as a potential threat.

These comments come several months after AGA expressed optimism about the sports betting industry despite facing challenges. This wasn't an isolated event, as the association highlighted that expansion has occurred nationwide, encompassing all 50 states and Washington, D.C. Bill Miller, President and CEO of AGA, added further insight. Historically, AGA has taken an adversarial position toward the sector, and this stance even led to a loss of members, or at least that's the prevailing view. Companies like DraftKings, Fanatics, and FanDuel departed from the association to explore their own prediction market plans. AGA pointed out that while the legal sports betting market is maturing, sports event contracts are also emerging as an alternative, boosting the market's growth. They noted that these sports event contracts, which AGA describes as bets, accounted for 80% of the platforms' volume.

Miller argues that prediction markets are misleading consumers by presenting sports wagers as investments. He explained that Kalshi and other prediction markets claim they are not required to comply with state and tribal sports betting regulations or pay state gaming taxes. This defiance allows consumers, including teenagers and beginners, to place bets without the protections, oversight, and accountability found in the legal market.