TLDR
- The American Gaming Association (AGA) called prediction markets a direct threat to the regulated U.S. gaming industry in its latest report.
- AGA CEO Bill Miller said the industry will “fight back” against illegal sports betting through sports event contracts.
- The Gaming Industry Outlook showed a 1.5% rise in real activity across casinos and betting operations.
- Executive confidence improved to a net positive of 21.4%, up from negative sentiment in early 2025.
- Nearly two-thirds of gaming executives plan to increase spending on projects in the next year, with half expecting AI to help cut costs.
The American Gaming Association has taken aim at prediction markets, calling them a growing challenge to the legal U.S. gaming industry. The trade group laid out its position in a new report produced with Oxford Economics.
The report, titled the Gaming Industry Outlook, uses industry data and economic analysis to track how commercial gaming is performing. It also highlights the pressure points facing the sector as it continues to expand.
AGA President and CEO Bill Miller did not hold back in his criticism of prediction markets. He said illegal sports betting through sports event contracts is “increasingly encroaching” on legal, state and tribal-regulated operators.
Miller added that the regulated industry views this as a threat and will continue to fight back. He said the goal is to protect the integrity of the industry.
The AGA has long pushed for tighter oversight of prediction markets, which allow users to bet on the outcome of real-world events. The trade group argues these platforms operate outside the rules that govern traditional sports betting.
Gaming Activity Shows Steady Growth
Despite these concerns, the report painted a largely positive picture of the U.S. gaming industry. The Gaming Conditions Index recorded a 1.5% rise in real activity across casinos and betting operations.
The index measures revenue, jobs, wages, and upcoming events at retail casinos. It is designed to give a clear snapshot of overall industry health.
Executive confidence also moved in a positive direction. The outlook shifted to a net positive of 21.4%, compared to negative sentiment recorded in early 2025.
That growing confidence is expected to lead to more spending. Nearly two-thirds of executives surveyed said they plan to increase investment in projects over the next year.
Half of those executives also said they believe artificial intelligence will help reduce costs. The industry appears to be leaning into new technology as a way to improve efficiency.
Economic Pressures Remain a Concern
The positive outlook does come with caveats. The AGA noted that inflation continues to put pressure on company margins and consumer spending.
Higher gas prices and geopolitical conflict in the Middle East were cited as factors making things harder. These issues are adding strain on top of an already shifting economic environment.
Hiring remains slow across the industry. The AGA said reduced hiring is still the norm as executives adjust to current conditions.
Wage pressure on margins is another central concern for operations. Companies are trying to balance rising labor costs with the need to stay competitive.
Promotional campaigns are also expected to keep declining. As markets mature, operators are relying more on technology and less on promotions to attract customers.
Miller described the industry as showing “resilience and adaptability” in a dynamic economic environment. He said operators are focused on investing in innovation and delivering entertainment.
The report serves as both a progress update and a call to action. The AGA is making clear it intends to push regulators and lawmakers to address what it sees as unfair competition from prediction markets.
The AGA said the legal, regulated gaming industry will continue to advocate for a level playing field as prediction market platforms expand their reach across the country.
