Why the Sports Betting Alliance Won't Touch Prediction Markets

Dr. Annelies De Vos · 2026-07-27

The Sports Betting Alliance (SBA) is staying neutral on prediction markets, even as its biggest members take wildly different approaches to this fast-growing sector. That might sound boring at first, but it's actually a big deal. Here's why. ### Who's in the Alliance? The SBA represents some of the biggest names in US sports betting: FanDuel, DraftKings, BetMGM, Fanatics Sportsbook, and bet365. These companies collectively handle billions of dollars in wagers every year. When they speak, regulators listen. ### The Neutral Stance Joe Maloney, the SBA's president, made it clear: "We do not have a position on prediction markets. We don't advocate in the space." That's a carefully chosen position. Think of it like a referee who refuses to pick sides. But why would a group with so much power stay quiet? ### Prediction Markets vs. Sports Betting Prediction markets let people bet on events like election outcomes, weather patterns, or even movie box office results. They're different from traditional sports betting, which focuses on games and matches. Some of the SBA's members are already dipping their toes into prediction markets. Others are staying far away. The alliance itself? It's sitting on the fence. ### Why Neutrality Matters This neutrality isn't accidental. Here's what's really happening: - **Regulatory attention**: Lawmakers and federal courts are paying close attention to prediction markets. The SBA doesn't want to pick a fight with regulators. - **Member disagreements**: If some members love prediction markets and others hate them, the alliance can't take a unified position without alienating someone. - **Risk management**: Prediction markets are legally murky. The SBA is protecting itself by staying out of the debate. ### What This Means for the Industry The SBA's neutral stance tells us something important: the prediction market space is still too uncertain for a clear industry position. That uncertainty creates both opportunities and risks for companies involved. > "We do not have a position on prediction markets. We don't advocate in the space." - Joe Maloney, SBA President ### The Bigger Picture This isn't just about one alliance. It's about how the entire sports betting industry is grappling with new forms of wagering. As prediction markets grow, companies will have to decide: jump in, stay out, or wait and see. The SBA's neutrality is a signal that the smart money is on watching and waiting. ### Key Takeaways - The SBA represents FanDuel, DraftKings, BetMGM, Fanatics Sportsbook, and bet365. - The alliance has no official position on prediction markets. - Members are taking different approaches to the sector. - Regulators and courts are increasingly focused on prediction markets. - Neutrality helps the SBA avoid internal conflict and regulatory backlash. ### What's Next? For now, the SBA is content to let its members figure out their own paths. But as prediction markets gain traction, that neutrality might not last forever. Lawmakers could force the issue, or the market itself could make a decision for them. Either way, the sports betting industry is watching closely. And so should you.